It’s been 25 years since Roth IRAs first became available as a tax-favored retirement savings option. Today, Roth IRAs are just as relevant as they were when they were introduced. In fact, the SECURE 2.0 Act of 2022 includes provisions that may continue to expand the popularity of Roth IRAs as a unique retirement savings tool in years to come.
Read MoreAn individual can contribute to an employer-sponsored retirement plan and to a Traditional IRA. But claiming a federal income tax deduction for a Traditional IRA contribution may be a different matter.
Read MoreQualified plan loan offsets (QPLOs) give clients more time to repay most outstanding plan loans.
Read MoreThe holiday season is often called the most wonderful time of the year, but many self-employed individuals also call it the most stressful time of the year.
Read MoreIf your financial organization holds a Traditional or SIMPLE IRA on December 31, 2022, and the IRA owner will be 72 or older in 2023, you must provide the IRA owner with an RMD statement by January 31, 2023.
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. Here’s a guide to help you choose the correct code.
Read MoreA 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.
Read MoreIf a company is part of a related employer relationship, the companies within the relationship are generally treated as one employer for retirement plan purposes.
Read MoreThe IRS will not enforce the 50 percent excess accumulation penalty tax for certain beneficiaries.
Read MoreThe Department of Labor’s Wage and Hour Division has once again released guidance on the definition of “employee.”
Read MoreThe 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.
Read MoreThe IRS has always treated IRA (and qualified plan) spouse beneficiaries quite generously. But the new RMD rules may make executing certain options more complicated.
Read MoreFor 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.
Read MoreYour 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.
Read MoreThe 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.
Read MoreCertain 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.
Read MoreA 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?”
Read MoreIf 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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