Roth IRA — Articles

Primary and Contingent Beneficiaries and the Myth of “They’ll Just Share It”

One of the most misunderstood parts of beneficiary designations is the difference between primary and contingent beneficiaries.

IRAAscensusDecember 18, 2025IRA, IRS, Roth IRA, Beneficiary

RMD Statements — What’s Required?

January is a hectic tax reporting month for many financial organizations. In addition to providing quarterly or year-end statements, financial organizations must provide required minimum distribution (RMD) statements to certain Traditional and SIMPLE IRA owners by January 31. If you haven’t already, now is the perfect time for you and your team to start preparing for the busy month ahead.

IRAAscensusDecember 18, 2025Required Minimum Distributions, IRA, Roth IRA, Beneficiary, Reporting

Understanding IRA Contributions

Financial 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.

expert, IRAAscensusDecember 18, 2025IRA, Required Minimum Distributions, Roth IRA, Eligibility, 401(k) Plan, Contributions

How to Move Designated Roth Account Assets

For 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.

IRS Releases 2026 Cost-of-Living Adjusted Retirement Savings Limitations

The IRS has issued Notice 2025-67 on November 13, 2025, which contains the 2026 cost-of-living increases for qualified retirement plan dollar limitations on benefits and contributions under the Internal Revenue Code (IRC).

IRA, Employer PlanAscensusNovember 20, 2025IRA, IRS, Traditional IRA, Roth IRA, Retirement Plan, Qualified Retirement Plan

Unraveling the Mystery of Roth IRA Distributions

The rules surrounding Roth IRAs can be complex, and somewhat confusing to the average taxpayer. Let’s clear up some of the common misconceptions surrounding Roth IRAs.

IRAAscensusNovember 20, 2025Roth IRA, Distribution, IRA, IRS

IRA Transfer vs. Rollover: The Retirement Move That Trips Up Savers

When it comes to saving for retirement, most people understand the basics. They set up an IRA, begin making contributions, and let the balance grow. The stumbling block tends to happen later, when it’s time to move those funds. That’s when your clients hear terms like “transfer” and “rollover,” and may end up doing the exact opposite of what they should.

IRAAscensusOctober 16, 2025IRA, Roth IRA, Reporting, Rollover, Transfer, Traditional IRA, IRS

Roth Conversion Strategies

The 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.

expert, IRAAscensusOctober 16, 2025Roth IRA, Traditional IRA, Conversion, Contributions, Contribution, Compliance and Operations

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

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 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

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

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.