Articles — Ascensus

IRA Beneficiary Options for Deaths On or After January 1, 2020

Quick Reference Tool: Distribution options for beneficiaries of IRAs when the IRA owner died on or after January 1, 2020.

IRAAscensusJune 14, 2018

Retirement Plan Contribution Limits

Quick Reference Tool: Current contribution limits for employer-sponsored and IRA-based retirement plans.

Employer Plan, IRAAscensusJune 14, 2018

DOL Announces Non-Enforcement of its Investment Advice Fiduciary Rule

A Department of Labor bulletin announces a temporary non-enforcement policy stating that the DOL generally will not enforce the investment advice fiduciary guidance following action by the U.S. Fifth Circuit Court of Appeals to vacate its final regulations and exemptions package.

IRA, Employer PlanAscensusMay 17, 2018Fiduciary, DOL, Regulations

SEC Best Interest Standard Is Major Departure From DOL Fiduciary Guidance

The Securities and Exchange Commission (SEC) issued proposed guidance for broker-dealers and registered investment advisors who make recommendations to retail clients. Now that the DOL conflict-of-interest (fiduciary) regulations are vacated, this SEC guidance remains the standard for broker-dealers who make investment recommendations.

IRA Document Concerns Upon Mergers and Acquisitions

Are we required to notify IRA clients who came to us from an acquisition that we are the new trustee? What should I do if the IRA documents are missing? Do we need to do anything regarding the SEP plans that were established with the previous organization if we do not offer SEP Plan documents?

expert, IRAAscensusMay 17, 2018Compliance & Operations, Documents & Amendments, SEP Plan, SIMPLE IRA Plan, Q&A

IRA Beneficiary Accounts—Are You Doing This Essential Step?

Financial organizations are responsible for making accurate separate accounting available for IRA beneficiaries. Properly establishing separate accounts provides more options for multiple beneficiaries.

IRAAscensusMay 17, 2018Compliance & Operations, Business Insights, Beneficiary

IRA Owner Behavior Trends From EBRI Show Plan Rollovers Still Strong

Individual retirement accounts (IRAs) hold one-quarter of all retirement plan assets in the U.S., yet only a small percentage of IRA owners contribute to their IRAs each year, according to an analysis of IRA data by the Employee Benefits Research Institute (EBRI).

IRA, Employer PlanAscensusMay 17, 2018Compliance & Operations, Distribution, Contribution, Investment

Spot Check IRA Contribution Reports Before They Go Out in May

Consistently filing incorrect information returns is a red flag to the IRS, prompting questions, a possible IRS audit, and potential financial organization penalties.

3 Options for High Income Earners to Fund Roth IRAs

Taxpayers with income too high to make Roth IRA contributions need not rule out Roth IRAs in their retirement planning strategies. They can use other methods to fund Roth IRAs—retirement plan rollovers, IRA conversions, and the backdoor Roth.

IRAAscensusApril 19, 2018Roth IRA, Compliance & Operations, Rollover, Conversion, Deduction, Contribution

DOL Fiduciary Rule Vacated by 5th Circuit Court of Appeals

The 5th Circuit U.S. Court of Appeals has reversed a district court’s 2016 ruling in favor of the Department of Labor (DOL) fiduciary regulations, stating that the DOL exceeded its statutory authority in issuing its fiduciary regulations.

IRA, Employer PlanAscensusApril 19, 2018Fiduciary, DOL, Regulations

IRA Investments—Are there restrictions?

We are considering offering additional investment opportunities. What are the limitations? Are life insurance and collectibles the only two investments prohibited in an IRA?

IRA, expertAscensusApril 19, 2018Compliance & Operations, Investment, Q&A

Budget Act Broadens Disaster Relief, Rewrites Hardship Rules, and More—Retirement Plan Amendments Expected

Budget Act of 2018 makes important changes to retirement plans and IRAs, including tax relief for California wildfire victims, hardship distribution rules relaxed, and changes to portability rules.

IRS Says 2017 Hurricane Distributions Should Be Reported on Form 1099-R as Penalty Tax Exception

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.

Employer Plan, IRAAscensusFebruary 15, 2018News, Retirement Plan, IRA, Disaster, Form 1099-R, Reporting

Tips to Help You Avoid IRA Compliance Blunders

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.

IRAAscensusFebruary 15, 2018IRA, Compliance & Operations, Reporting, Documents & Amendments, Withholding, Beneficiary

IRA Recharacterizations Past, Present, and After Tax Reform

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.

IRA, Employer PlanAscensusFebruary 15, 2018Roth IRA, Retirement Plan, Recharacterization, Conversion, Rollover

Get Ready for 2018 Contributions, but Don’t Forget 2017 Prior-Year Contributions

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.

IRA, HSAAscensusJanuary 18, 2018Traditional IRA, Roth IRA, HSA, Contribution, Eligibility, Deduction, Compliance & Operations

How the New DOL Fiduciary Rule Applies to IRAs and HSAs

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.

Capture Larger Share of Rollover Market From Beneficiary Rollovers

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.