The age when required minimum distributions must begin increased from 70½ to 72, starting in 2020. Find out who is affected by the change—and what it means for IRAs versus employer-sponsored retirement plans.
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When does the five-year waiting period start for purposes of a Roth IRA qualified distribution? If a Roth IRA owner has multiple Roth IRAs, does each account have its own five-year period? What happens to the five-year period when a Roth IRA owner dies?
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The IRS issued its semi-annual update to the agency’s 2019-2020 Priority Guidance Plan. A number of the guidance items deal with retirement savings arrangements.
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With so many savings obstacles lined up against women, it is crucial that your female clients have a plan to meet their retirement savings goals. Incorporating an HSA into their savings strategy early on could pay off for them in the future.
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What is a related employer relationship? Why does it matter if the employer is part of a related employer relationship for retirement plan purposes? What should the employer consider in terms of the plan and how are participants affected?
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The enactment of the SECURE Act provisions just 11 days before the start of 2020 has most financial organizations and other industry partners in a whirlwind trying to comply with the requirements as soon as possible. Here’s a brief overview of some of the changes affecting IRAs.
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Some provisions of the SECURE Act took effect mere days after enactment—on January 1, 2020—making implementation difficult. Industry groups have requested that the IRS expedite guidance on the most pressing questions. Here’s the guidance that we have so far: some is explicit and some we can glean through draft instructions for required tax reporting.
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In response to the timing of the enactment of the SECURE Act/FCAA , the IRS issued Notice 2020-6, granting IRA trustees, custodians, and issuers some relief when it comes to 2019 Form 5498 reporting for required minimum distributions.
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If your organization is a trustee or custodian of both IRAs and HSAs, it’s important to realize that an HSA is treated quite differently from an IRA after the account owner dies. HSA beneficiaries are limited to one outcome, depending on whether they are a spouse or a nonspouse beneficiary.
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On average, your clients who are women earn less and have fewer years with earned income compared to men. They are less likely to set aside money in an IRA or contribute to an employer-sponsored retirement plan. But for those clients without their own income who are married, making “spousal contributions” to an IRA may help them save for retirement.
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What is UBTI? What types of income are exempt from UBTI? Who is responsible for determining whether an IRA has incurred UBTI? How is the UBTI tax filed and paid?
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What does the universal availability requirement in 403(b) plans mean? Does the universal availability rule apply to all organizations? How does the employer satisfy the universal availability requirement?
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Understanding the SECURE Act provisions will help you provide the best service possible to your clients. There are certain provisions that will more significantly affect your retirement savings plan business.
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As a trustee or custodian of IRAs, HSAs, or ESAs, your organization must keep track of many deadlines throughout the year. Missing a deadline can be costly. Seeing the big picture of all due dates in one calendar year with a brief description of each may be helpful.
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A Roth IRA offers distinct tax advantages that set it apart within the IRA family. But not everyone is eligible to contribute to a Roth IRA. Learn more about the eligibility requirements.
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Can an HSA owner who changes to family HDHP coverage mid-year contribute the full HSA family contribution amount for the year? If an HSA owner has family HDHP coverage and she and her spouse each have an HSA, how much can each contribute to their respective HSAs? If a nondependent child under age 26 is still covered by a parent’s HDHP, may that child contribute to his own HSA?
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Saving enough for retirement is difficult for most Americans. Unfortunately, it can be even more difficult for women. By understanding some of the challenges that many women face when it comes to saving, you can help your women clients who may be lagging behind in retirement preparedness catch up and even pull ahead.
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When can employees withdraw money from a 401(k) plan while they are still working? Are there other ways that employees can take out their elective deferrals before age 59½ as a distribution? Can employees take loans from their 401(k) plans?
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