IRA — Articles — Ascensus

Fall is the Perfect Time for Teens to Put Summer Job Money to Work in a Roth IRA

For many teens, those summer paychecks can be more than just spending money. They can actually be the key to starting one of the smartest financial habits around: contributing to a Roth IRA.

IRAAscensusSeptember 18, 2025Roth IRA, IRS, IRA, Business Insights

When and How do Retirement Savings and Spousal Consent Intersect?

A marriage begins with the intention that the relationship will endure—the reality of divorce and separation statistics notwithstanding—and that a couple’s retirement years will be spent together. Consequently, it’s easy to understand why laws give special consideration to spouses when it comes to their entitlement to financial resources intended to provide retirement security.

IRA, Employer PlanAscensusSeptember 18, 2025Beneficiary, IRA, Retirement Plan, 401(k) Plan, 403(b) Plan

Choosing the Right Retirement Plan for Your Small Business: SEP, SIMPLE, or Individual (k)?

If your client owns a small business, they’re already juggling a lot. Between managing clients, balancing budgets, and keeping operations moving, retirement planning often falls to the bottom of the list. Yet choosing the right retirement plan can be a game changer, not just for the business owner, but for their employees as well.

Are You Complying with the SIMPLE IRA Summary Description Requirements?

Both the employer operating the SIMPLE IRA plan and the financial organization holding the SIMPLE IRA assets play a role in providing a summary description to employees.

expert, IRAAscensusSeptember 18, 2025SIMPLE IRA Plan, IRS, Business Insights, Q&A

Calculating Earnings for Timely IRA Excess Removals and Recharacterizations

The deadline for removing 2024 excess contributions and completing recharacterizations is on the horizon. An IRA owner has until his tax return due date, plus extensions, to remove an excess contribution or recharacterize a 2024 contribution.

IRAAscensusAugust 21, 2025Excess Contribution, Distribution, Traditional IRA, Roth IRA, IRA, IRS

How to Calculate Life Expectancy Payments on Inherited IRA Assets

Financial organizations are not required to send notices to clients or report to the IRS when an annual payment must be taken from an inherited IRA. The beneficiary is responsible for knowing and taking any required life expectancy payments.

Although not required, many financial organizations assist their clients with this calculation.

IRAAscensusAugust 21, 2025Beneficiary, Distribution, IRA, Traditional IRA, Roth IRA, Required Minimum Distributions

Understanding the RMD Delay: What Retirees Need to Know

The SECURE 2.0 Act has brought significant changes to retirement planning—especially for retirees aged 72 and older. One of the most significant updates is the delay for retirees to take required minimum distributions (RMDs), which now begin at age 73 (age 75 in 2033). While this offers flexibility, it also introduces new challenges that retirees should understand.

IRA, expert, Employer PlanAscensusAugust 21, 2025Required Minimum Distributions, Roth IRA, Beneficiary, Rollover

What You Need to Know About New Distribution Code Y For Qualified Charitable Distributions

The introduction of code Y has brought up a lot of questions. Here’s what we know so far, and what information we hope to see by the end of the year.

expert, IRAAscensusJuly 17, 2025Traditional IRA, Required Minimum Distributions, Q&A

Key Changes in OBBBA Enhance Saving Options

The One Big Beautiful Bill Act (OBBBA), passed by Congress on July 3, 2025, introduces several significant changes aimed at enhancing retirement savings options and financial security for individuals. Here are the key provisions that retirement savers should be aware of.

IRAAscensusJuly 17, 2025IRA, Tax, Education, Guidance & Legislation

SIMPLE IRA Plans: They Aren’t Always So Simple

Ironically, given their official name, SIMPLE IRA plans have a number of elements that are anything but simple. Congress has altered the governing rules from time to time over the last three decades. As a result, some would say that SIMPLE IRA plans—while still a fine small employer plan option—are getting less and less simple.

IRAAscensusJuly 17, 2025SIMPLE IRA Plan, IRA, IRS, Compliance and Operations

What You Need to Know When Accepting Inherited Retirement Assets

When clients bring inherited IRAs from other financial organizations to yours, your team must know which information to collect in order to ensure a smooth transition.

IRAAscensusJuly 17, 2025Beneficiary, Traditional IRA, IRA, Roth IRA, Required Minimum Distributions

Do-It-Yourself Compliance Audit

No one wants to be caught unprepared by an IRS audit. Because the best defense is a good offense, here are some tips and tricks to review your own files so you can learn what areas may need your attention.

IRAAscensusJuly 17, 2025Traditional IRA, IRS, IRA, SIMPLE IRA Plan, SEP Plan, Business Insights, Compliance & Operations

Successor Beneficiaries: What Are Their Distribution Options?

When an IRA owner dies, the assets are distributed to beneficiaries, whether named by the IRA owner or determined by IRA document defaults. This can sometimes be a complicated process for financial organizations. And further complications may arise when the original beneficiary dies, leaving the inherited IRA to a successor beneficiary.

IRAAscensusJune 26, 2025Traditional IRA, Roth IRA, Distribution, Beneficiary, SIMPLE IRA Plan, SEP Plan

The IRA Guide to Summer Compliance and Review

Everyone loves a good summer to-do list and we’re here to help. It’s the perfect time to survey your IRA department and see how you’re doing and what can be improved or implemented.

Understanding RMDs for SEP Plans and SIMPLE IRAs

Just like Traditional IRA owners, an individual with a SEP plan can delay taking his first RMD until April 1 of the year after he attains age 73. This date is known as the required beginning date (RBD). But remember—if the SEP plan owner or participating employee delays taking his first RMD until the following year, he will need to take out two RMDs in the same year: the RMD for year one and the RMD for year two.

expert, IRAAscensusJune 26, 2025IRA, Roth IRA, SEP Plan, SIMPLE IRA Plan, Required Minimum Distributions

IRS Form 5498 Refresher

As your financial organization prepares to file Form 5498, IRA Contribution Information, to the IRS and send copies to your clients, it is a great time to familiarize yourself with what the form reports.

IRAAscensusMay 15, 2025Traditional IRA, Roth IRA, IRA, IRS, Reporting

Surprise! IRS Sneaks in New Code for Reporting IRA Qualified Charitable Distributions (QCDs)

Buried within the newly released 2025 Form 1099-R instructions is a reporting change you may have missed, but one that is important to know about if you work with IRAs.

IRAAscensusApril 17, 2025Traditional IRA, Required Minimum Distributions, IRS, Regulations, Reporting

Early Distributions and Penalty Tax Exceptions

IRAs and qualified retirement plans (QRPs) are intended to be used for retirement. Therefore, the tax laws and regulations encourage people to leave their money in an IRA or QRP until they retire. If distributions are taken from an IRA (including an IRA holding SEP contributions) or QRP before the account owner reaches age 59½, a 10 percent early distribution penalty tax is assessed on the taxable amount of the distribution, unless a penalty tax exception applies.