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The new SECURE 2.0 law fixes a glitch that has made it difficult for new solo 401(k) plans to be opened up retroactively for a prior year. A solo 401(k) plan is a great retirement savings vehicle for self-employed business owners with no employees (other than their spouse). In a solo 401(k), the sole proprietor (or other business owner) is considered to wear two hats – as an employee and as an employer. This allows both elective deferrals and employer contributions. The 2023 elective deferral limit is $22,500, or $30,000 if age 50 or older, while the employer contributions maximum is 20% of adjusted net earnings (or 25% of compensation if the business is incorporated). There’s also an overall limit for combined deferrals and employer contributions; in 2023, it’s $66,000 or $73,500 if the $7,500 age-50-or-older deferrals are made.

I did a Back Door ROTH Conversion for the first time in 2022. ($6,000) The Tax Software I’m using has...

Client has a traditional IRA (all pre-tax) which we are going to rollover into her 401K in order to facilitate...

I am well aware of the change to RMDs for inherited IRAs proposed by the IRS (i.e., that non-eligible designated...

I have a client that had an existing ROTH IRA worth $ 40,600 at the beginning of 2022. He contributed...

We have a husband and wife that want to make non-deductible IRA contributions for 2022 and then immediately convert those...

If a plan allows a participant to select the source of a 401(k) loan, is borrowing from the Roth 401(k)...

I am interested in your interpretation of the RMD (required minimum distribution) rules using the following facts: Original IRA owner’s DOB is 1/21/29 Original IRA owner’s date of death is 12/29/21

Hello, The question comes up often where a person leaves a company and is receive severance pay after they separate...

SECURE 2.0 is a mammoth piece of legislation that contains over 90 provisions that affect retirement accounts. While many of these provisions are not game changers, they still can be very helpful to specific groups of retirement savers. One of these is the provision that eliminates the 10% early distribution penalty that applies to net income attributable (NIA) when an excess IRA contribution is corrected by withdrawal.