Can an IRA owner roll over a distributed 2020 RMD? Does an IRA beneficiary have to satisfy a year-of-death RMD for 2020? Does an IRA owner have to take an RMD for 2020—despite the waiver—before converting to a Roth IRA in 2020?
Read More
The DOL issued a new prohibited transaction exemption that maintains the impartial conduct standard in effect since 2018 for financial advisors and retail investors to adhere to.
Read More
As 2020 draws to a close, you may want to remind your HSA owners that they don’t have to take a use-it-or-lose-it approach with their HSAs. Assets may be used for qualified medical expenses in subsequent years—or not used at all, continuing to grow into retirement.
Read More
One of the more unique responsibilities that an employer or plan administrator has is to “qualify” domestic relations orders submitted by retirement plan participants in the event of divorce or legal separation. Find out what makes a domestic relations order a “QDRO.”
Read More
The IRS recently published final regulations updating the life expectancy tables that are used for required minimum distributions and other purposes. Although not applicable until 2022, find out how the new life expectancy figures may affect your clients so your organization can prepare to accommodate its administrative system for the changes.
Read More
Recent IRS guidance addresses reporting and withholding issues related to escheatment of retirement plan assets. This guidance also adds receipt of escheated funds to the list of approved reasons for individuals to self-certify that they qualify for the 60-day rollover waiver.
Read More
One of the most difficult aspects of reporting IRA and retirement plan distributions is determining the proper distribution code(s) to enter in Box 7 on IRS Form 1099-R. We’ve called out each distribution code that may apply and explained when to use each.
Read More
The IRS released final regulations that provide more time—beyond 60 days—for plan participants to roll over certain types of plan loan offsets. This guidance was issued in proposed form on August 20, 2020, followed by a 45-day comment period.
Read More
How much can be contributed each year to a plan participant’s account? What happens if a plan participant exceeds the annual additions limit? What can an employer do to help avoid exceeding the annual additions limit?
Read More
The IRS released the 2021 IRA and retirement savings plan limitations in late October. Several limitations will increase for 2021.
Read More
Intended to encourage charitable giving, a qualified charitable distribution is an IRA withdrawal that is paid to a qualifying charitable organization, and—if conditions are met—will be tax-free to the giver.
Read More
Often, a beneficiary designation mistake is not discovered until the IRA owner has died and it’s too late to correct it. This can result in payment to an unintended beneficiary, additional tax and legal expenses, and reputational risk to your organization. Learn how to avoid the most common beneficiary designation mistakes.
Read More
Although conversions and recharacterizations are fairly common, many who work with IRAs don’t fully understand how they work. We’ll clear up some common misconceptions about these two types of transactions.
Read More
The IRS issued final regulations updating its life expectancy tables, which are used for calculating required payments from retirement savings arrangements. The new tables are to be used for distributions required in 2022 and later years.
Read More
Can HSA owners repay mistaken distributions from their HSAs? When HSA owners use their HSA assets for nonqualified expenses, are those considered mistaken distributions? What options do they have for correcting these?
Read More
The IRS announced an extension of time to complete certain time-sensitive, tax-related acts for victims of Hurricane Delta.
Read More
The IRS updated a previously-issued extension of time to complete certain time-sensitive, tax-related acts for victims of California wildfires.
Read More
When designing an employer-sponsored retirement plan that uses the new comparability profit sharing contribution allocation formula, your employer clients may want to consider ways to make the formula work better.
Read More