For earnings in a Roth IRA to be tax-free, a distribution must be “qualified.” Find out the differences between qualified and nonqualified Roth IRA distributions.
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There are three main types of correction programs under the IRS, collectively referred to as the Employee Plans Compliance Resolution System (EPCRS). These include the Self-Correction Program (SCP), Voluntary Correction Program (VCP), and Correction on Audit Program (Audit CAP).
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The IRS issued a news release on April 1, 2022, announcing the postponement of certain tax-related deadlines for victims of severe storms, flooding, and landslides in Puerto Rico.
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We have guidance regarding certain changes brought about by the SECURE Act. On February 23, 2022, the IRS released proposed regulations that revise the existing required minimum distribution (RMD) regulations and other related regulations.
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While most of your IRA beneficiaries will appreciate that they have inherited an IRA from a friend or loved one, others may be less than thrilled at the news. As an IRA administrator, you should know that everyone has the right to refuse an inheritance, including an IRA.
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Handling beneficiary distributions is one of the most complex facets of administering IRAs. Separating beneficiary assets as soon as you are notified of an IRA owner’s death may help your financial organization not only ensure that beneficiaries preserve their options but also stay compliant with year-of-death reporting requirements.
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HSAs are IRA-like accounts that are tax-favored and designed to cover medical expenses incurred by the HSA owner, the HSA owner’s spouse, and his dependents. So—how can HSAs help your clients?
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As your clients prepare their tax returns, you may find yourself receiving a barrage of tax reporting questions. Hopefully, here are the answers to some of your challenging questions during tax season.
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Plan sponsors should evaluate their plans for protected benefits when they make a discretionary amendment or when there is an acquisition or merger of plans.
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Final regulations entitled, Implement SECURE Act and Related Revisions to Employee Benefit Plan Annual Reporting on the Form 5500, issued by the Department of Labor’s Employee Benefits Security Administration (EBSA), have been received by the federal Office of Management and Budget (OMB).
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The Internal Revenue Service (IRS) has issued Announcement 2022-6, providing that effective March 14, 2022, and until further notice, the IRS will not accept applications for opinion letters on prototype IRAs (Traditional, Roth, and SIMPLE IRAs), SEP plans (including salary reduction SEPs (SAR-SEPs)), and SIMPLE IRA plans.
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In 2021, Ascensus’ ERISA consultants fielded approximately 40,000 calls from our clients who subscribe to our 800 Consulting Lines. We asked our experienced IRA consultants what their trending IRA questions were last year and we compiled a list, along with their responses.
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Ascensus consultants conduct compliance reviews throughout the country in order to help financial organizations recognize errors and identify ways to mitigate their risks. Here are some of the more common compliance mistakes that Ascensus consultants have discovered.
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The first few months of each year usually bring an increased number of contributions for individual retirement arrangements (IRAs) and health savings accounts (HSAs). During this flurry of contribution activity, it’s important to make sure that your clients clearly designate the year that a contribution is for.
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Nondeductible employee contributions, otherwise known as after-tax contributions, are available in qualified plans like 401(k), 403(b), or money purchase pension plans. Depending on the plan design, individuals can increase their qualified plan Roth assets by making nondeductible contributions and then rolling over (i.e., converting) the assets to a designated Roth account within the plan.
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To make HSA contributions, an individual must be covered by a qualifying high deductible health plan (HDHP), and not be covered by a plan that is not an HDHP. However, when it comes to HSA eligibility, not all HDHPs are created equal.
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Several bills with provisions that would alter tax-advantaged savings arrangements have been introduced. If these provisions are approved, they represent important priorities for the House and Senate lawmakers responsible for their drafting and introduction.
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If you’ve had difficulty locating the new life expectancy tables, you’re not alone. It’s recently become a common question fielded by ERISA consultants on Ascensus’ 800 Consulting service. You can find them all right here.
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