When the Covid-19 pandemic arrived in 2020, many individuals took advantage of a federal tax break and withdrew money from their retirement accounts.
If they repay the funds—which isn’t required—by next year, they’ll get another tax break, too.
If you are younger than age 59½ and want to withdraw money from your individual retirement account, there are several exceptions that could allow you to do so without incurring the 10% early-withdrawal penalty from the IRS.
One such exemption being used more often is a so-called 72(t) plan.
Using your individual retirement account to give to charity is a good thing. But tax snafus can ruin the good intentions.
Traditional IRAs have long been used to make qualified charitable distributions. Eligible individuals can donate as much as $100,000 a year. Such gifts can make up part or all of the donor’s required minimum distribution, or RMD. And amounts donated to qualified charities are excluded from the donor’s taxable income for that year.
Proposed new regulations from the Internal Revenue Service for inherited retirement accounts would require many heirs to make minimum annual withdrawals from the accounts—leaving less room for the savings to grow tax-deferred over the years.
The new rules would provide guidance to the Secure Act of 2019, which made several changes to laws governing retirement accounts.
Given the turmoil in the markets, I’m worried about my IRA. I’m looking for investments other than stocks and bonds that might work for me. What are your thoughts about buying and holding real estate inside an IRA?
Putting money into a 401(k) is simple. Taking money out often requires an exit strategy.
The tax breaks baked into retirement accounts don’t last forever. Retirees or their heirs eventually must start draining their balances by taking annual withdrawals known as required minimum distributions or RMDs, triggering tax bills.
Understanding how new tax situations this year could affect your tax return in 2023 could put you a step ahead of the game. CPA Ed Slott joins Wall Street Journal Your Money Briefing host J.R. Whalen to discuss.
Americans could stash more in their 401(k)s and sit on their nest eggs longer under a House bill that aims to boost individual retirement savings.
The bill, passed Tuesday by a vote of 414 to 5, raises contribution limits for older workers, and lets companies offer employees a small cash bonus for signing up for the retirement plan. The bipartisan measure, which some are referring to as Secure Act 2.0, would build on retirement-policy changes enacted in 2019 that, among other things, raised the age people were required to start withdrawing money from retirement accounts to 72 from 70½.
It used to be that Americans with tax-favored retirement plans focused mainly on how to get money into them.Now, savers are more and more concerned with when and how much must be withdrawn—including at death or after.
I would like to see you write, and warn your readers, about Medicare surcharges.I was insufficiently aware of the impacts
