Beginning with account owner deaths in 2020 and later, the SECURE Act of 2019 made significant changes to the rules on how qualified plan beneficiaries distribute their inherited assets. One significant provision prevents most nonspouse beneficiaries from “stretching” out distributions and taxation over their life expectancy.
Read MoreIt's a brand-new year filled with fresh reporting deadlines, and perhaps a good time to take note on whether your financial organization is on track to meet these obligations—or to refresh your memory on when specific deadlines occur. First quarter is always a busy reporting season.
Read MoreJanuary is rapidly approaching and with it comes the deadline for fair market value (FMV) statements. One of the most challenging IRA reporting requirements is FMV statement reporting for the IRA owner’s year of death.
Read MoreEscheat, which is the transference of unclaimed property to a government entity, is primarily governed by state laws. So each state has its own laws that set procedures and timelines for reporting and reverting unclaimed or abandoned property to the state. Each financial organization should determine and set its own procedures to properly report and pay out unclaimed accounts.
Read MoreIf you’re uncertain about the RMD rules, you’re not alone. The rules can be complicated. And you may find that many beneficiaries don’t understand the rules either.
Read MoreBeneficiaries are allowed to disclaim inherited IRA assets. But beneficiaries cannot direct where the assets will go.
Read MoreThe IRS on July 14, 2023, issued Notice 2023-54 to provide transition relief for required minimum distributions (RMDs) in connection with the change in required beginning date (RBD) to age 73 under SECURE 2.0, and guidance for certain specified RMDs for 2023.
Read MoreThe IRS issued Notice 2023-23, guidance that addresses required minimum distribution (RMD) reporting by IRA trustees, custodians, and issuers.
Read MoreA conversion is a taxable, reportable movement of assets from either a Traditional IRA (including Traditional IRAs that hold SEP contributions) or a SIMPLE IRA (after a two-year period) to a Roth IRA.
Read MoreThe IRS will not enforce the 50 percent excess accumulation penalty tax for certain beneficiaries.
Read MoreThe IRS has always treated IRA (and qualified plan) spouse beneficiaries quite generously. But the new RMD rules may make executing certain options more complicated.
Read MoreA retirement plan is one of the most influential benefits that an employer may offer. One question that employers may ask is “How can we help participants get the most out of our retirement plan?”
Read MoreIf you handle IRAs at your financial organization, it’s likely you’ll be the one to inform clients of the tax consequences of a missed required minimum distribution (RMD) deadline. If they fail to take an RMD, they’ll owe a 50 percent excess accumulation penalty tax to the IRS for the amount they didn’t withdraw timely.
Ouch.
Read MoreBeneficiary options have become more complex in light of recent guidance, including SECURE Act changes, proposed RMD regulations, and Notice 2022-53. This article may help address some questions that your clients may have.
Read MoreSenators Ron Wyden (D-OR) and Mike Crapo (R-ID), Senate Finance Committee Chair and Ranking Member, have introduced S.4808, the Enhancing American Retirement Now (EARN) Act.
Read MoreThe IRS has provided additional guidance related to federal income tax withholding requirements for retirement plan and IRA payments.
Read MoreThe IRS has announced the postponement of certain tax-related deadlines for victims of a water crisis in Mississippi.
Read MoreIt has been 20 years since the IRS last made regulatory changes for required minimum distributions (RMDs). Today, we have proposed RMD regulations. But we also have many new questions that affect the plan administration of RMDs.
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