Does a married plan participant need to obtain spousal consent when requesting a qualified retirement plan distribution? Do IRAs have the same spousal consent requirements? Do spousal consent requirements apply to plan participants joined in civil unions that aren’t defined as marriage?
Read MoreWhile the latest version of IRS Publication 590-B answered some outstanding questions brought about by the SECURE and CARES Acts, it also sparked some new questions.
Read MoreYou may have clients who ask if they can open an IRA for their minor child. The short answer is yes, their child can have an IRA. There are no minimum age limits on who can own an IRA. But there are some things you’ll need to know before opening an account for a minor.
Read MoreWith the IRS expected to release new IRA model documents soon, you may want to revisit the decision to use either the model document or a prototype document as your required IRA plan agreement. Knowing the difference between the model and prototype, and the pros and cons of both, may help determine which one is best for your organization.
Read MoreThe IRS recently postponed certain tax-related deadlines for Alabama, Kentucky, and Tennessee victims of severe storms. The tax relief postpones various tax filing and payment deadlines that occurred starting on February 27 and March 25.
Read MoreThe DOL has issued two pieces of guidance on its new fiduciary advice prohibited transaction exemption. The first piece contains a detailed set of FAQs for investment professionals and financial organizations. The second piece is written for retirement investors. Here are the main takeaways from this latest round of guidance.
Read MoreYou and your staff may be fielding questions from clients about whether coronavirus-related distributions are still available in 2021 or whether there’s an RMD waiver for 2021. Those two CARES Act provisions have ended, but some parts of the relief are still applicable.
Read MoreThe IRS officially extended the deadline for individuals to file their federal tax returns and make IRA, HSA, and ESA contributions with Notice 2021-21. This notice also gives financial organizations until June 30, 2021, to file and furnish Form 5498 series forms.
Read MoreMany IRA owners who have been negatively impacted financially by the COVID pandemic may look to access their IRA assets early. While doing so may result in a penalty tax, the IRS does provide some exceptions. But IRA owners should also consider the true cost of dipping into their retirement savings early.
Read MoreThe IRS has indicated that it plans to release new IRA model documents for each type of IRA. When that happens, all IRA trustees, custodians, and issuers will be required to use either the new model documents or the new listing of required modifications if using a prototype document.
Read MoreThe DOL issued two pieces of guidance on its new fiduciary advice prohibited transaction exemption, PTE 2020-02. One is intended to educate retirement savers about considerations when choosing a potential advisor, and the other is a detailed set of frequently asked questions.
Read MoreFind out when it’s okay and when it’s not okay to accept prior-year contributions that are mailed to your organization or deposited through an ACH payment after the contribution deadline.
Read MoreIf your financial organization administers IRAs or HSAs, it’s responsible for reporting the contributions made to these accounts to account owners and to the IRS annually by May 31. Find out how to complete this type of reporting on Forms 5498 and 5498-SA.
Read MoreThe IRS has indicated that Form W-4P will be split into two forms: one for periodic pension or annuity payments and the other—a new form—for nonperiodic payments. Early release of the 2022 draft versions of these forms are now available.
Read MoreThe IRS issued news releases announcing the postponement of certain tax-related deadlines for both Texas and Louisiana victims of severe winter storms. The tax relief postpones various tax filing and payment deadlines that occurred starting on February 11.
Read MoreWhat is a qualified plan loan offset? What is the qualified plan loan offset extended rollover period? How should we report a qualified plan loan offset?
Read MoreThe latest COVID-19 relief legislation comes in the form of the American Rescue Plan Act of 2021, signed into law on March 11. It contains a third round of direct payments to Americans, funding to help hard-hit industries, and many other provisions, including some that will affect health plans and defined benefit plans.
Read MoreThe IRS has released final regulations on computing unrelated business taxable income for a tax-exempt organization. While the guidance may affect a relatively small portion of tax-exempt retirement plans, for those plans that invest in certain types of assets, however, knowing the rules will be important.
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