A conversion is a taxable, reportable movement of assets from either a Traditional IRA (including Traditional IRAs that hold SEP contributions) or a SIMPLE IRA (after a two-year period) to a Roth IRA.
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If a company is part of a related employer relationship, the companies within the relationship are generally treated as one employer for retirement plan purposes.
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The IRS will not enforce the 50 percent excess accumulation penalty tax for certain beneficiaries.
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The Department of Labor’s Wage and Hour Division has once again released guidance on the definition of “employee.”
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The IRS in Notice 2022-55 has issued the inflation-adjusted retirement savings limitations for the coming year. Those who follow these annual announcements will note some significant year-over-year increases from the 2022 amounts.
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The IRS has always treated IRA (and qualified plan) spouse beneficiaries quite generously. But the new RMD rules may make executing certain options more complicated.
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For self-employed individuals, determining the amount that can be contributed to a qualified plan can be daunting. It is important to understand that the compensation that can be used to calculate a retirement plan contribution is likely to be a different amount than what is reported to the Internal Revenue Service (IRS) as net earnings (profit or net business income) for tax purposes.
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Your client may establish a Roth IRA and roll over an eligible rollover distribution from a designated Roth account to that Roth IRA (or to an existing Roth IRA) even if he is not eligible to make regular contributions because of the MAGI limits.
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The term “safe harbor” is used quite often in the retirement plan world. Generally, if you follow the safe harbor method or guidelines, then you will be “safe” from those requirements.
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Certain IRA beneficiaries who are required to take out annual life expectancy payments under the 10-year-rule have been granted temporary penalty relief from the IRS.
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A retirement plan is one of the most influential benefits that an employer may offer. One question that employers may ask is “How can we help participants get the most out of our retirement plan?”
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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.
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Beneficiary 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.
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Divorce 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.
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The 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.
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The 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.
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Employers 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.
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IRA 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.
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