Tag: IRA

IRS announces rollover relief for retirement account RMDs that were waived under the CARES Act

The Internal Revenue Service is allowing anyone who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver...

Guest Author Dan Bolda: New legislative changes to 401(k) provisions offers COVID-19 relief

The $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act) includes a host of provisions providing relief for both individuals and businesses with respect to retirement plans, including expanded availability of hardship withdrawals and plan loans.  Plan sponsors must...

Down market could be right time to convert IRA to Roth IRA

Markets are down, and accordingly so is the value of many IRA accounts.  This decline may be a window of opportunity to convert IRAs into Roth IRAs.  Tax will be due on the value of the IRA converted, but the...

SECURE Act and estate tax clawback could affect inherited money

A recent MarketWatch article highlighted two recent tax initiatives that could affect the wealthy. The SECURE Act would eliminate big tax advantage for IRA beneficiaries. Few noticed when the House of Representatives in May overwhelming passed the imaginatively named “Setting...

New limitations for retirement plan funding

The IRS recently announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019.  The IRS today issued technical guidance detailing these items in Notice 2018-83. Highlights of changes for 2019 The contribution...

How to enhance retirement planning under new tax laws

A recent article from CNBC outlined several ways taxpayers can improve retirement planning under new the tax laws. Here’s an overview: Move to a low-tax state. New caps on state and local tax deductions make retirement in high-tax, blue states...

IRS announces 2018 pension plan limitations; 401(k) contribution limit increases to $18,500 for 2018

The IRS recently announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2018. Highlights of Changes for 2018: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans,...

Understanding the 72t distribution (SOSEPP)

A 72t distribution is shorthand for the Internal Revenue Code (IRC) Section 72, part t. The most popular provision of this code section is known as a Series of Substantially Equal Periodic Payments (SOSEPP) and is a method by which...

IRS announces 2018 pension plan limitations

The Internal Revenue Service issued the annual cost of living adjustments Thursday for 401(k) contributions, pension plans and other retirement-related matters. The contribution limit for workers who are enrolled in 401(k), 403(b), most 457 plans, and the federal government’s Thrift...

Is your tax-free IRA really tax-free?

According to a recent article in The Wall Street Journal, taxpayers should beware that as IRAs grow in size, so does the potential for taxes on these accounts if they have investments in alternative assets such as hedge funds, private-equity...