If you handle IRAs at your financial organization, it’s likely you’ll be the one to inform clients of the tax consequences of a missed required minimum distribution (RMD) deadline. If they fail to take an RMD, they’ll owe a 50 percent excess accumulation penalty tax to the IRS for the amount they didn’t withdraw timely.
Ouch.
Read MoreBeneficiary options have become more complex in light of recent guidance, including SECURE Act changes, proposed RMD regulations, and Notice 2022-53. This article may help address some questions that your clients may have.
Read MoreDivorce is a difficult topic for many people to discuss, but the actual process of a divorce can be even more daunting for couples who have shared assets in a variety of investments, including assets earmarked for retirement.
Read MoreThe IRS issued Notice 2022-45, which extends the deadline for amendments to retirement plans and individual retirement arrangements (IRAs) to adopt some provisions relating to distributions and loans under the CARES Act.
Read MoreThe Social Security Administration has announced the 2023 adjustments for benefits and certain other limitations that are subject to annual cost-of-living adjustment (COLA) indices. One of these includes the Social Security taxable wage base (TWB), which identifies the maximum amount of an individual’s annual earnings that are subject to withholding for Social Security-administered benefits.
Read MoreEmployers may allow participants to take loan distributions from their qualified retirement plans. If loan distributions are permitted, there are a few details that participants should be aware of when deciding whether to take a loan distribution to meet short-term financial needs.
Read MoreIRA owners have until their federal tax return deadline, plus extensions, to recharacterize a 2021 IRA contribution, so you may be fielding many questions about recharacterizations between now and the October 15 deadline.
Read MoreWhen determining if an employee has met a qualified plan’s minimum age and service requirements, many employers first verify the employee’s age and whether the employee has met the service requirement by counting the actual hours worked or by using the hours equivalency or elapsed time methods for determining service.
Read MoreTrusts are used in estate planning for many reasons. IRA owners may establish a trust to reduce estate taxes, to control the way their assets are distributed, and to avoid family conflicts. A trust can also be a way for beneficiaries to avoid the costly probate process.
Read MoreSenators Ron Wyden (D-OR) and Mike Crapo (R-ID), Senate Finance Committee Chair and Ranking Member, have introduced S.4808, the Enhancing American Retirement Now (EARN) Act.
Read MoreThe IRS has provided additional guidance related to federal income tax withholding requirements for retirement plan and IRA payments.
Read MoreThe IRS has announced the postponement of certain tax-related deadlines for victims of a water crisis in Mississippi.
Read MoreWas your dinner delivered to your front door last night or have you gotten a lift to the airport lately by using one of several app-based companies, such as Uber or Lyft? If so, welcome to the gig economy, where “side hustles” are no longer relegated to the sidelines but can be a way of life for many workers.
Read MoreHelping clients determine distribution options after a loved one dies may seem overwhelming, but there are a few simple questions that can guide you to the appropriate options if the individual had assets in an individual retirement arrangement (IRA) or an employer-sponsored retirement plan, such as a 401(k) plan or 403(b) plan.
Read MoreWhen it comes to saving for education, individuals have a variety of options when it comes to the type of savings plan to use. Some types of savings arrangements include tax-advantaged accounts that have certain restrictions, while other types of accounts do not provide tax benefits but offer more flexibility.
Read MoreThere is no age restriction for contributing to a Traditional or Roth IRA. The primary eligibility requirement is that a person must have eligible compensation.
Read MoreEmployers sometimes ask if they can reward their more tenured employees by providing them with a more generous matching formula than their less tenured counterparts.
Read MoreThe IRS issued Notice 2022-33, which extends the deadline for amendments to retirement plans and Individual Retirement Arrangements (IRAs) to adopt provisions enacted under the SECURE Act, the Miners Act, and some provisions under the CARES Act.
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