Articles — Ascensus

IRS Releases 2024 Cost-of-Living Adjusted Retirement Savings Limitations

The IRS has issued Notice 2023-75, which contains the 2024 cost-of-living increases for qualified retirement plan dollar limitations on benefits and contributions under the Internal Revenue Code (IRC).

DOL Proposes Expanded Definition of Investment Advice Fiduciary

The Department of Labor (DOL) recently released a regulatory package that includes a proposed amendment to the regulations that define what constitutes an investment advice fiduciary under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (the “Retirement Security Rule”).

Understanding the Details of IRA Rollover Restrictions

IRA-to-IRA rollovers are subject to the “one-per-12-month” restriction. Meaning that individuals may roll over only one IRA distribution during a 12-month period.

expert, IRAAscensusNovember 16, 2023Rollover, IRA, Business Insights, Reporting, Roth IRA, Traditional IRA

Take the Fear Out of IRA Portability

Halloween is just around the corner, but what may strike fear into the hearts of your staff may be greater than one night of goblins and ghouls. However, moving IRA assets from one IRA to another, or even to a different type of IRA, doesn’t have to be scary.

IRAAscensusOctober 19, 2023Compliance & Operations, IRA, SEP Plan, SIMPLE IRA Plan, Traditional IRA, Roth IRA, Regulations, Rollover

A Refresher on IRA Rollovers

Unlike the requirements for making annual IRA contributions, an individual is never required to have eligible compensation (i.e., earned income) in order to roll over retirement plan assets to an IRA, including a Roth IRA.

expert, IRAAscensusOctober 19, 2023Rollover, IRA, Roth IRA, Traditional IRA

IRA Compliance — Are You Prepared for an IRS Audit?

Compliance is a critical concern for financial organizations that serve as IRA trustees, custodians, and issuers—and for good reason. IRS penalties for noncompliance and violation of IRA rules can be costly. If the IRS finds compliance issues with your IRA program, it could lead to further scrutiny of your organization.

IRAAscensusSeptember 21, 2023Regulations, IRS, IRA, Traditional IRA, Roth IRA, Reporting, Business Insights, Compliance & Operations

Traditional vs. Roth: What Should I Tell My Clients?

Opening an IRA can be a sound way for your clients to save for retirement. But first, they’ll need to choose what type of IRA—Traditional or Roth—that they want to invest in. Traditional and Roth IRAs share similar rules, but savers use these accounts in different ways.

IRAAscensusSeptember 21, 2023IRA, IRS, Traditional IRA, Roth IRA

Deadline Approaches for 2022 IRA Recharacterizations and Excess Contribution Removals

The deadline for IRA owners to recharacterize or remove their 2022 excess contributions is fast approaching. Typically, the federal tax return extension deadline is October 15. But this year that date falls on a Sunday, so the deadline has been moved to October 16, 2023.

expert, IRAAscensusSeptember 21, 2023IRS, IRA, Traditional IRA, Roth IRA, Reporting, Recharacterization, Excess Contribution

RMD Rules When an IRA Owner Dies

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.