Tag: IRA

Tax-free rollover from 529 plans to Roth IRAs will be allowed starting in 2024

In December 2022, Congress passed the Consolidated Appropriations Act of 2023, an omnibus spending bill that includes the much-anticipated and long-awaited retirement bill known as SECURE Act 2.0. One of the provisions of SECURE Act 2.0 that has grabbed a disproportionate...

2023 retirement contribution limit increases announced

The IRS has announced new contribution limit increases fro both 401(k) and IRA retirement savings plans: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $22,500,...

New IRS proposal could affect timing of inherited IRA distributions

If you've inherited an IRA in 2020 or later, take note: the wait-until-the-tenth-year approach to distributing the account might no longer work.  Most have interpreted the IRS' regulation of the 2019 SECURE Act to mean that an IRA inherited in...

401(k) Contribution Limit increased to $20,500 in 2022

Starting in 2022, the maximum contribution that individual U.S. taxpayers can contribute to their 401(k) plans will increase to $20,500, up from $19,500 for 2021 and 2020. The limit on annual contributions to an IRA remains unchanged at $6,000. The...

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...