When an IRA is forgotten or abandoned, it can prove problematic from an administrative perspective for IRA custodians, trustees, and issuers. What can these organizations do when this occurs? Can they legally “shed” these IRAs that are owned by unresponsive individuals?
Read MoreThe year 2020 saw many employers hold off on starting a retirement plan. Now, as employers look to close their tax year, the goal of establishing a qualified retirement plan for 2020 may be something closer to the front of their minds. Thanks to the SECURE Act, they still have time to adopt a plan.
Read MoreThe Department of Labor released guidance to assist retirement plan fiduciaries in dealing with issues of missing or unresponsive participants. Issues typically involve terminating or abandoned plans, or terminated participants who have vested benefits remaining in a plan.
Read MoreWhat is a prohibited transaction? Who is a disqualified person? What are the consequences of a prohibited transaction? How is a prohibited transaction corrected?
Read MoreThe IRS announced an extension of time to complete certain time-sensitive, tax-related acts for victims of Hurricane Zeta.
Read MoreIRA, retirement plan, and HSA distributions must be reported to account owners and to the IRS by January 31. Follow these charts to be sure that the required distribution information is being entered correctly.
Read MoreCan 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 MoreThe 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 MoreAs 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 MoreOne 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 MoreThe 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 MoreRecent 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 MoreOne 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 MoreThe 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 MoreHow 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 MoreThe IRS released the 2021 IRA and retirement savings plan limitations in late October. Several limitations will increase for 2021.
Read MoreIntended 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 MoreOften, 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.
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