Articles — Ascensus

IRS Provides IRA Reporting Relief in Light of SECURE 2.0 Act's RMD Age Change

The IRS issued Notice 2023-23, guidance that addresses required minimum distribution (RMD) reporting by IRA trustees, custodians, and issuers.

SECURE 2.0 Brings Opportunities—and Some Challenges

The ink was barely dry on the President’s signature when the calls started coming in about the SECURE 2.0 Act. And as you might expect, the questions weren’t all about what new provisions this legislation contained.

IRA, Employer PlanAscensusFebruary 16, 2023Compliance & Operations, IRA, Roth IRA, SIMPLE IRA Plan, Regulations

Rollovers vs Postponed/Late Contributions vs Repayments

Here’s a refresher on how to know the reporting differences between rollovers, postponed/late contributions, and repayments.

SECURE 2.0 is Congress’s Retirement Enhancement Encore

The SECURE Act of 2019 has been followed by a package of several bills, which have collectively been dubbed “SECURE 2.0.” These bills were eventually combined into a single bill, titled The SECURE 2.0 Act of 2022. This bill was included in the Consolidated Appropriations Act of 2023, which was signed into law on December 29, 2022.

RMD Age Delayed to 73 in 2023

The SECURE Act of 2019 increased the RMD age from 70½ to 72 years. Now the SECURE 2.0 Act of 2022 is once again delaying the RMD age—from 72 to 73—starting in 2023. And wait, there’s more. In 2033, the RMD age will increase to age 75.

IRA, Employer PlanAscensusJanuary 19, 2023IRA, Retirement Plan, Traditional IRA, SEP Plan, SIMPLE IRA Plan, Reporting

Income Tax Deductions on Traditional IRA Contributions

An individual can contribute to an employer-sponsored retirement plan and to a Traditional IRA. But claiming a federal income tax deduction for a Traditional IRA contribution may be a different matter.

IRA, expertAscensusJanuary 19, 2023Compliance & Operations, IRA, Traditional IRA, Deduction, Reporting

RMD Statements — Is Your Organization Prepared?

If your financial organization holds a Traditional or SIMPLE IRA on December 31, 2022, and the IRA owner will be 72 or older in 2023, you must provide the IRA owner with an RMD statement by January 31, 2023.

Selecting the Correct IRS Form 1099-R Box 7 Distribution Codes

One of the most difficult aspects of reporting IRA and retirement plan distributions is determining the proper distribution code(s) to enter in Box 7 on IRS Form 1099-R. Here’s a guide to help you choose the correct code.

Roth Conversions: Should You do it?

A 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.

expert, IRAAscensusDecember 15, 2022Roth IRA, Conversion, Compliance & Operations, Required Minimum Distributions

How IRS Notice 2022-53 Affects Beneficiaries

The IRS will not enforce the 50 percent excess accumulation penalty tax for certain beneficiaries.

2023 Benefit Limit Increases Reflect Inflation in U.S. Economy

The IRS in Notice 2022-55 has issued the inflation-adjusted retirement savings limitations for the coming year. Those who follow these annual announcements will note some significant year-over-year increases from the 2022 amounts.

Spousal Beneficiary Options Just Got (a Bit) More Complicated Under Proposed RMD Regulations

The IRS has always treated IRA (and qualified plan) spouse beneficiaries quite generously. But the new RMD rules may make executing certain options more complicated.

Solving the Complexities of Calculating Self-Employed Retirement Plan Contributions

For self-employed individuals, determining the amount that can be contributed to a qualified plan can be daunting. It is important to understand that the compensation that can be used to calculate a retirement plan contribution is likely to be a different amount than what is reported to the Internal Revenue Service (IRS) as net earnings (profit or net business income) for tax purposes.

Employer Plan, IRAAscensusNovember 17, 2022Retirement Plan, Qualified Retirement Plan, Plan Establishment, Contribution, IRA, IRS

Designated Roth Account and Roth IRA Portability

Your client may establish a Roth IRA and roll over an eligible rollover distribution from a designated Roth account to that Roth IRA (or to an existing Roth IRA) even if he is not eligible to make regular contributions because of the MAGI limits.

expert, IRAAscensusNovember 17, 2022Compliance & Operations, IRA, Roth IRA, Distribution, Contribution, Q&A, Retirement Plan, Reporting

The Ins and Outs of Navigating Retirement

A 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?”

An IRA Owner Missed His RMD Deadline—What Can We Do?

If 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.

How to Handle Complex Beneficiary Scenarios Following Recent Changes

Beneficiary 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.

IRS Extends Remedial Amendment Period for CARES Act

The IRS issued Notice 2022-45, which extends the deadline for amendments to retirement plans and individual retirement arrangements (IRAs) to adopt some provisions relating to distributions and loans under the CARES Act.