The IRS announced a late change for 2017 Form 1099-R reporting of IRA and retirement plan qualified hurricane distributions. The IRS is not, however, requiring reporting corrections.
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What does it mean to be a fiduciary of a plan? Who are fiduciaries of the plan? Must a fiduciary tell participants that he is a fiduciary?
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IRA compliance is a big responsibility for financial organizations that administer IRAs, and mistakes do happen. Here are common errors that Ascensus® consultants have found during financial organization IRA compliance reviews.
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How is an individual’s HSA contribution limit determined for the year he enrolls in Medicare? How much can an HSA owner contribute if he switches from self-only to family health insurance coverage mid-year?
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Tax reform legislation no longer allows taxpayers to undo their IRA conversions and retirement plan rollovers to Roth IRAs, which both have potential for heavy tax hits. Here’s a look at recharacterizations during this 2018 transition year.
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The start of a new year is the ideal time to create a roadmap for the year ahead, noting retirement plan changes that may be on the horizon. Here are key items to keep watch for in 2018.
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Traffic at financial organizations picks up soon for IRA and health savings account (HSA) contributions. Individuals can start making 2018 contributions, but preparing their 2017 income tax returns often prompt them to make prior-year contributions.
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The financial industry has been hearing about the Department of Labor fiduciary (conflict-of-interest) rule for several years. These rules apply to IRAs, HSAs, and Coverdell ESAs, as well as employer-sponsored retirement plans. While some aspects will not apply until mid-2019, financial organizations should fully evaluate how the rules affect their products and services.
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Accepting rollovers of inherited retirement plan assets is a great way to grow IRA business. Financial organizations interested in capturing a larger share of the rollover market should encourage rollover contributions from employer-sponsored retirement plan beneficiaries.
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An IRA owner wants to complete a rollover through the new self-certification process. How do we report this? Must we file a corrected Form 1099-R showing a small incorrect amount? Can an IRA beneficiary do a qualified charitable distribution?
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Coverdell education savings accounts (ESAs) provide a unique savings vehicle with the potential to have tax-free income to cover the costs for education. Questions about ESAs surface when family members, or others, come into their financial organization to make contributions for their loved one. Here are a few common questions financial organization may encounter about ESA contributions.
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Late in December 2017, President Trump signed tax reform legislation into law (Public Law No. 115-97) resulting in fulfillment of one of the GOP’s major 2016 campaign promises. The legislation affects employer-sponsored retirement plans and IRAs, and in some cases, other tax-advantaged savings arrangements.
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The IRS released a reminder notice in December 2017 of the tax-related relief granted by the Disaster Tax Relief and Airport and Airway Extension Act of 2017. This legislation, enacted in early October 2017, provides special options for those affected by Hurricanes Harvey, Irma, and Maria, including options specific to IRA and employer-sponsored retirement plan assets.
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What is the difference between a domestic relations order (DRO) and a qualified domestic relations order (QDRO)? How can the alternate payee take the awarded amount from the plan? How will the award be taxed and reported?
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The Pension Benefit Guaranty Corporation (PBGC) issued final regulations that modify existing guidance on missing participants and beneficiaries in terminating qualified retirement plans. The revised regulations broaden guidance to now apply to defined contribution (DC) plans, to multiemployer (union) plans covered under PBGC’s pension insurance program, and to certain other DB plans not previously covered.
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Health savings accounts (HSAs) have been around for more than a decade. Very few savings arrangements offer the same advantages as HSAs—tax-deductible contributions, tax-deferred earnings, and tax-free distributions if used properly. Individuals find this HSA triple tax advantage extremely attractive.
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Prospects for passage of health savings account (HSA) expansion legislation appears less likely after the Senate failed to repeal and replace the Patient Protection and Affordable Care Act (also known as Obamacare).
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The applicability date of several key elements of the Department of Labor (DOL) investment fiduciary guidance has been extended from January 1, 2018, to July 1, 2019. The additional 18-month transition period specifically applies to the controversial Best Interest Contract (BIC) exemption, to the “principal transactions” exemption for asset transactions between investment fiduciaries and employee benefit plans (including IRAs), and to certain proposed restrictions on annuities offered as retirement investments.
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