Most small- to mid-sized business owners and self-employed individuals want an employer-sponsored retirement plan that’s affordable and easy to administer. Find out how SEP, SIMPLE IRA, and Individual(k) plans stack up.
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A new IRS withholding form released in 2022 means that payers and individuals will have a new process for calculating and electing federal income tax withholding on retirement distributions. Although the IRS will not require payers to use the new and revised forms until January 1, 2023, payers may start using them in 2022.
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A qualified HSA funding distribution allows HSA owners to directly move their Traditional or Roth IRA assets to their HSA as a regular contribution. Qualified HSA funding distributions are not deductible, however, and cannot be treated as a prior-year contribution.
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A qualified domestic relation order, or QDRO, is generally issued in connection with the payment of child support, alimony, or the division of marital property from a qualified retirement plan, 403(b) plan, or governmental 457(b) plan assets.
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The IRS announced that the filing deadline for 2021 tax returns or requests for extension is April 18, 2022, for most taxpayers.
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In early January, the IRS issued a news release announcing the postponement of certain tax-related deadlines for victims of wildfires and straight-line winds in Colorado. The IRS also issued a news release in mid-January announcing the postponement of certain tax-related deadlines for victims of flooding and mudslides in Washington.
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The Department of Labor published on January 14, 2022, several inflation-adjusted penalty amounts for certain failures associated with qualified retirement plans.
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Financial organizations that administer IRAs, health savings accounts (HSAs), and Coverdell education savings accounts (ESA) have many reporting deadlines looming ahead in 2022. Here’s a rundown of the impending due dates in the first quarter.
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The one-per-12-month IRA rollover rules were radically revised in 2014 as a result of a U.S. Tax Court decision, restricting rollovers to individuals rather than to IRAs. A real-life case study of a one-per-12-month rollover rule violation taken directly from our IRA consulting lines demonstrates how to protect your financial organization while helping your clients.
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Parents and grandparents tend to open and to contribute to Coverdell education savings accounts (ESAs) around the holidays and the start of the new year. If you don’t work with ESAs on a regular basis, now is the perfect time to review how to establish an ESA.
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Last month the U.S. House of Representatives passed H.R. 5376, the Build Back Better Act (“BBB Act” or “the Act”). Following quickly on the heels of the Infrastructure Investment and Jobs Act, the BBB Act contains several retirement and benefits provisions that may affect financial organizations, service providers, and consumers. This bill has gone through numerous revisions as it made its journey to the House floor for a vote. It will now go to the Senate, which will likely make further revisions.
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A simplified employee pension (SEP) plan offers many advantages not available with qualified retirement plans. Even though a SEP plan may be easier for an employer to maintain, questions from both employers and employees still arise.
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When each spouse owns 100 percent of their own business, are their businesses considered separate employers or a single employer for qualified retirement plan purposes? What situations involving spouses could cause businesses to be treated as a single employer?
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One of the most difficult aspects of reporting IRA and qualified retirement plan distributions is determining the proper distribution codes to enter in Box 7 on IRS Form 1099-R. Consider some common distribution scenarios to learn which code applies and why.
The IRS released the 2022 IRA and retirement savings plan limitations in early November. Most limitations will increase for 2022.
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The IRS recently released a new draft of Form W-4R and of Form W-4P, in which the IRS indicates that it will not require use of the redesigned Form W-4P and the new Form W-4R to meet federal withholding requirements until January 1, 2023.
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What is separate accounting? How are IRA assets moved to separate accounts? Is there a deadline to establish separate accounts? Who is a designated beneficiary and why is knowing that important?
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Offering alternative investment options may be one way to attract and retain IRA clients with large balances. If your organization does offer alternative investments, either directly or through an outplacement relationship, it may face challenges in accommodating your clients’ hard-to-value assets.
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