Articles — Ascensus

If 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.

IRA Disclaimers: What to do When a Beneficiary Refuses to Inherit an IRA

Beneficiaries are allowed to disclaim inherited IRA assets. But beneficiaries cannot direct where the assets will go.

Now is the Perfect Time to Review Your Record Retention Procedures

Summer is typically a slower part of the year for most financial organizations, so organizations often use this “downtime” to review their operational policies and procedures. During this time of the year, our consultants on the Ascensus 800 Consulting Lines receive frequent calls about IRA record retention—including “How long should our financial organization keep IRA documents?”

Employer-Sponsored Retirement Plan Rollovers: What Are My Client’s Options?

When individuals retire or leave their employer, they must decide what to do with the accumulated savings in their retirement plan. Typically, they will roll over the assets to another qualified retirement plan or an IRA in order to keep the assets in a tax-deferred account. If they decide to withdraw the assets, they may end up having to include the distribution amount in their taxable income for the year.

IRS Provides Additional RMD Transition Relief Under SECURE/SECURE 2.0

The 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.

IRS Issues Interim Guidance on Plan Corrections Under SECURE 2.0 Act

The SECURE 2.0 Act of 2022 (SECURE 2.0) provisions affecting the Employee Plans Compliance Resolution System (EPCRS) support the IRS trend toward shifting certain types of retirement account corrections to the Self Correction Program (SCP).

Tracking Down Beneficiaries

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?

IRAAscensusJune 15, 2023Compliance & Operations, Business Insights, Beneficiary, IRA, Traditional IRA, Roth IRA

Proposed Regulations Govern Making Participant Elections and Spousal Consents Electronically

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.

SECURE 2.0 Adds New Penalty-Free Distribution Option for Certain Emergency Expenses

The SECURE 2.0 Act has added several more penalty-free distribution options—including one that helps individuals pay for certain emergency expenses.

IRA, Employer PlanAscensusJune 15, 2023IRA, IRS, Regulations, Retirement Plan, Qualified Retirement Plan

SECURE 2.0 Provides New Ways to Take Penalty-Free Distributions

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.

IRS Provides EPCRS Guidance Related to SECURE 2.0

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.

IRA, News BriefAscensusJune 15, 2023Compliance & Operations, IRA, SEP Plan, SIMPLE IRA Plan, IRS

Our Client Says That We’ve Incorrectly Reported His SEP Contribution—What Do We Do?

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.

IRAAscensusMay 18, 2023SEP Plan, SIMPLE IRA Plan, Reporting, Regulations, Contribution

Your SEP and SIMPLE Questions Answered

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.

expert, IRAAscensusMay 18, 2023Compliance & Operations, IRA, SEP Plan, SIMPLE IRA Plan, Contribution, Traditional IRA

Do You Have Clients in a Federally Declared Disaster Area? Here’s How to Navigate Form 5498 Reporting and Late IRA/HSA Contributions

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.

HSA, IRAAscensusApril 20, 2023Compliance & Operations, IRA, HSA, IRS, Disaster, Contributions, Traditional IRA, Roth IRA

Navigating the New Federal Withholding Requirements

Withholding elections for nonperiodic distributions are now made on the new IRS Form W-4R.

IRA, expertAscensusApril 20, 2023IRA, Withholding, Regulations, Tax, Reporting

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.