December 21st, 2018 by Kim Chen
Converting a traditional IRA to a Roth IRA can provide tax-free growth and tax-free withdrawals in retirement. But what if you convert your traditional IRA — subject to income taxes on all earnings and deductible contributions — and then discover you would have been better off if you hadn’t converted it? Before the Tax Cuts […]
November 6th, 2018 by Kim Chen
Notice 2018-83, 2018-47 IRB; IR 2018-211, 11/1/2018 IRS has announced the 2019 cost-of-living adjustments (COLAs) with respect to retirement plan limits. Many limits, which are adjusted by reference to Code Sec. 415(d), are changed for 2019 since the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, others remain unchanged. […]
November 28th, 2016 by Kim Chen
Although the Required Minimum Distribution (RMD) rules of IRC Sec. 401(a)(9)(A) don’t apply to Roth IRAs during the owner’s life, post-death distributions must be made according to the RMD rules as if the Roth IRA owner died before the required beginning date. The IRS recently addressed whether a nonspouse beneficiary’s failure to begin RMDs within […]
November 7th, 2016 by Kim Chen
The taxpayer took $33,000 in loans from her retirement plan, but defaulted on the loans. The plan sponsor issued the taxpayer a Form 1099-R reporting the unpaid loan balance as a taxable distribution, which she failed to report on her income tax return. The IRS issued a notice of deficiency of approximately $8,300 for failing […]
September 9th, 2016 by Kim Chen
IRS eases a costly tax pitfall for retirement savers: If you miss the 60-day deadline for transferring money from a retirement account to an IRA, you can fix the mistake and avoid paying income taxes by explaining your case to the IRS. The IRS may waive the 60-day rollover requirement in certain situations if you […]
June 20th, 2016 by Christian Wynns
In year-end legislation, the Consolidated Appropriations Act of 2016 made permanent qualified charitable distributions from individual retirement accounts. Because qualified charitable distributions are finally permanent, now’s a good time to review the rules. Benefits A qualified charitable distribution permits annual direct transfers to a qualified charity totaling up to $100,000 of tax-deferred IRA savings. Qualified charitable […]
June 16th, 2016 by Christian Wynns
Convincing your kids to use their summer earnings to invest in an IRA is a pretty tough sell. But it’s an excellent idea and one that might not be too outlandish if you encourage your child simply to allocate a portion of his or her earnings to the cause. Not only will modest contributions add […]
May 19th, 2016 by Christian Wynns
Even if you have a valid will, you may need to draft a new one for a variety of reasons. A will is an essential part of planning for the future. But don’t think creating a will is a one-time proposition. Even if you have a valid document, you may need to draft a new will for […]
March 30th, 2016 by Christian Wynns
Did you turn age 70 1/2 in 2015? If so, an important date is coming up soon. By April 1, 2016, you must begin taking required minimum distributions (RMDs) from your traditional IRAs — or face a steep penalty. (Lifetime distributions don’t need to be taken from Roth IRAs at any age.) A participant […]
March 11th, 2016 by Christian Wynns
The Baby Boomer generation reached its peak in 1957 at an annual birth rate of about 4.3 million people. It’s hard to believe that these Baby Boomers will turn 59 years old in 2016. An important rite of passage that comes with this age is that they’ll soon be eligible to withdraw funds from their […]
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