One primary reason individuals contribute to a Traditional IRA is for the tax deduction. But deduction eligibility is different than contribution eligibility, and individuals who do not qualify for a deduction can still contribute to a Traditional IRA.
Read MoreAre there any age restrictions to making an IRA contribution? Can a working spouse contribute to a retired spouse’s IRA? What are the IRA catch-up contribution rules? Can I contribute to a 401(k) plan and to a Traditional IRA? Here are answers to your common IRA contribution questions.
Read MoreOn December 20, 2023, the IRS released Notice 2024-2, Miscellaneous Changes Under the SECURE 2.0 Act of 2022. The so-called “Grab Bag” Notice provides guidance to multiple provisions of the SECURE 2.0 Act of 2022.
Read MoreJanuary is rapidly approaching and with it comes the deadline for fair market value (FMV) statements. One of the most challenging IRA reporting requirements is FMV statement reporting for the IRA owner’s year of death.
Read MoreNaming a trust your IRA beneficiary is much less common than naming one or more persons, but it is not altogether rare. Unlike a will—which essentially only identifies who will receive a decedent’s assets—a trust can set conditions or limitations for receiving the assets and identifies one or more trustees to ensure that the decedent’s wishes expressed in the trust are carried out.
Read MoreEscheat, which is the transference of unclaimed property to a government entity, is primarily governed by state laws. So each state has its own laws that set procedures and timelines for reporting and reverting unclaimed or abandoned property to the state. Each financial organization should determine and set its own procedures to properly report and pay out unclaimed accounts.
Read MoreThe 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).
Read MoreThe 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”).
Read MoreIRA-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.
Read MoreHalloween 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.
Read MoreUnlike 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.
Read MoreCompliance 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.
Read MoreOpening 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.
Read MoreThe 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.
Read MoreIf 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.
Read MoreBeneficiaries are allowed to disclaim inherited IRA assets. But beneficiaries cannot direct where the assets will go.
Read MoreSummer 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?”
Read MoreWhen 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.
Read More
