Financial organizations sometimes have a difficult time tracking down beneficiaries that are entitled to inherited IRA assets. Some scenarios may have you questioning, what do we do with these assets now?
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The coronavirus pandemic resulted in restrictions on where and how people could meet. These limitations—including remote work requirements—made it harder for some participants to take distributions from employer-sponsored retirement plans. In response, the IRS issued temporary relief allowing spousal consent to be obtained using remote notary services.
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The SECURE 2.0 Act has added several more penalty-free distribution options—including one that helps individuals pay for certain emergency expenses.
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The SECURE 2.0 Act provides more ways for individuals to access their retirement savings and creates new exceptions to the 10 percent early distribution penalty tax.
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The IRS in late May 2023 issued Notice 2023-43 to address questions and provide interim guidance related to Section 305 of SECURE 2.0.
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There can be confusion surrounding how to report SEP contributions. Our ERISA consultants receive frequent calls about this topic on our 800 Consulting lines. A common scenario involves a self-employed business owner receiving a Form 5498, IRA Contribution Information, and noticing that the SEP contribution that he made wasn’t reported for the tax year in which he reported the contribution on his federal tax return.
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A sole proprietor whose aim is maximizing her contribution may find a SEP plan more appealing than a SIMPLE IRA. But as her business grows and she starts hiring employees, she might decide to switch to a SIMPLE IRA, which allows for employee deferrals instead of solely relying on employer contributions.
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Is the 2022 tax season truly over for your clients? If they live or work in a federally declared disaster zone, their federal tax deadline has been postponed this year.
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Withholding elections for nonperiodic distributions are now made on the new IRS Form W-4R.
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The IRS issued Notice 2023-23, guidance that addresses required minimum distribution (RMD) reporting by IRA trustees, custodians, and issuers.
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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.
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Here’s a refresher on how to know the reporting differences between rollovers, postponed/late contributions, and repayments.
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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.
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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.
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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.
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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.
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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.
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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.
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