Although largely overshadowed by 529 plans, Coverdell Education Savings Accounts still offer tax-advantaged opportunities to save for education expenses. This article explores how ESAs work, the tax rules governing distributions, and what account owners should know as these legacy accounts continue to age.
Read MoreSafe harbor 401(k) plans offer a streamlined path to maximizing employee and owner contributions, but specific deadlines and notice requirements apply. This expert Q&A explains who benefits most from a safe harbor design and what employers should consider before the year-end planning window closes.
Read MoreA number of states—about half—have laws that automatically revoke an existing IRA spouse beneficiary designation upon divorce. This can prevent post-death IRA assets from being inherited by someone other than who the IRA owner would intentionally choose.
Read MoreA so-called “solo(k)” is like every other 401(k) in virtually all respects. Where it may differ from group 401(k) plans is in the simplicity of its plan document, and in plan administration.
Read MoreRMDs are simply the government’s way of saying you’ve deferred taxes long enough, and it’s time to recognize these assets as income.
Read MoreThose who leave employment in a year in which they are—or will be—age 55 or older may take distributions from their employer’s retirement plan without being subject to the 10 percent penalty tax.
Read MoreSECURE 2.0 included a provision that requires most employees with annual income of $145,000 or more—indexed—to make their catch-up salary deferral contributions as Roth contributions. This was initially intended to take effect in 2024, but was temporarily delayed to 2026.
Read MoreLet’s break down some of the most common—and confusing—HSA questions that financial organizations and their clients may encounter.
Read MoreIndividuals may only use compensation earned from services rendered (earned income) to support the funding of a Roth or Traditional IRA.
Read MoreAn employer-sponsored retirement plan, such as a 401(k) plan, 403(b) plan, or governmental 457(b) plan, may include employer contributions and employee salary deferral contributions. Let’s break down the 2026 contribution limits for these retirement plans.
Read MoreA distribution made by an IRA owner who is totally and permanently disabled is not subject to the 10 percent early distribution penalty tax.
Read MoreLong-term care insurance is purchased by individuals who anticipate future expenses for long-term care, either home-based, or provided in a licensed nursing facility. As the U.S. population ages, the probability that such care may be needed is increasing, as is its cost.
Read MoreFinancial organizations field a lot of IRA questions from clients, and many of the same ones seem to come up repeatedly. Here are some common IRA contribution questions you’re likely hearing at your branch office, over the phone, or in your inbox.
Read MoreFor over two decades now, plan participants have been allowed to make designated Roth account contributions to 401(k) plans and 403(b) plans. Governmental 457(b) plans and the federal Thrift Savings Plan (TSP) have allowed this option since 2011. Since that time, many participants have been able to build up their designated Roth account balances. As plan participants approach retirement age, they may be unsure about their next steps and turn to you for guidance.
Read MoreAs 2025 draws to a close, here are some RMD scenarios you may encounter at your financial organization.
Read MoreAs retirement plan regulations continue to evolve, it is essential that employers and plan administrators maintain careful attention to key deadlines and new legislative mandates. Particular attention should be paid to the maintenance of plan documents, as these serve as the foundation for plan administration and compliance.
Read MoreThe backdoor Roth contribution works especially well if your client doesn’t have any other pretax assets in any Traditional (including those holding SEP assets) or SIMPLE IRAs.
Read MoreThe Internal Revenue Service (IRS) recently released final regulations that provide insight on how to administer the catch-up contribution requirements under the SECURE 2.0 Act of 2022 (SECURE 2.0).
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