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SECURE 2.0 Makes Changes to RMD and Excess Contribution Penalties

• RMD Penalty Changes
• Excess Contribution Penalty Changes
• The Takeaway

Executive Summary

Insert: 2023 HSA Chart

Unsolved Mysteries of SECURE 2.0

• Drafting Errors
• 529-to-Roth IRA Rollovers
• New Exceptions to the 10% Penalty
• Other Unresolved Issues ρ Conclusion

GUEST IRA EXPERT: Ryan McKeown,

Learning from Other People’s Mistakes

• Bobrow Case: One Rollover per Year
• One Rollover, Three Mistakes
• Mulhern Case: Replacing Mandatory Tax Withholding
• Kirkpatrick Case: How NOT to Divide an IRA After Divorce
• A Prenup Does NOT Qualify as Spousal Consent
• Spousal Rollover vs.

Roth IRA Conversion for All Ages

• Roth IRA Conversion for Younger Savers
• Midlife Conversion Opportunities
• Too Old to Convert?

Why the Required Beginning Date Is More Important than Ever

• What Is the RBD?
• The RBD and Annual RMDs During the 10-Year Period

• Other Reasons Why the RBD Is Now Important
• Conclusion

 

Executive Summary

The Often-Misunderstood “Rule of 55”

Too Much of a Good Thing?

• No-Longer-Deductible IRA Contributions
• Excess Contributions
• Fixing an Excess Contribution After the Deadline

• Conclusion

Executive Summary

Consolidating Accounts to Simplify Retirement

• Benefits of Consolidation
• Consolidating with an IRA Rollover ρ Portability Limits
• Advisor Action Plan

Insert: Retirement Account RMD Aggregation Chart

GUEST IRA EXPERT: Don Graves,

Transferring Roth IRAs After a Gray Divorce

• Two Methods for Tax-Free Transfer
• Transfer of Roth 5-Year Forever Clock
• Transfer of 5-Year Clock for Roth Conversions
• Pro-Rata Transfer of Assets
• Tracking 5-Year Clocks in the Receiving Roth IRA

Executive Summary

Maximize IRA Contributions by Avoiding These 6 Common Misconceptions

1. I Am Too Late
2. I Am Too Old
3. I Don’t Have Any Earned Income
4. I Can’t Afford to Contribute
5. My Income Is Too High
6. I Have a Retirement Plan at Work

Insert: Tax Planning Charts

GUEST IRA EXPERT: Bill Upson,

Top IRA Rulings of 2020

• Three Stars for SECURE
• Fiduciary Income Tax Experts ρ Lifting Life Insurance
• Relying on Roth
• Matters of Trust
• SECURE Strategies
• IRS Actions
• Court Cases
• Private Letter Rulings

Summary of Key Rulings

 

Important Retirement Account Deadlines Loom

• Returning Unwanted RMDs After August 31
• Small Business Retirement Plan Deadlines
• Excess IRA Contributions and Recharacterization
• Coronavirus-Related Distributions
• Qualified Charitable Distributions
• Net Unrealized Appreciation

Executive Summary

IRS Issues SECURE Act Guidance

• IRA Contributions After Age 701⁄2
• Penalty-Free Distributions for Birth or Adoption
• More Areas of Guidance
• Further Guidance Needed

GUEST IRA EXPERT: Brad Pistole, 

WHAT’S INSIDE

 

IRS Updates Qualified Plans’ Rollover Notie: Use This to Your Clients’ Advantage

• Extended Rollover Period for Plan Loan Offsets

• Exceptions from the Early Distribution Penalty
• Self-Certification for Late 60-Day Rollovers

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Company Plan Distribution Rules: The End of the Line

• Plans and IRAs Share RMD Rules
• Three RMD Differences
• Plan Distribution Options
• Post-Service Distributions
• In-Service Distributions: Age 59½
• In-Service Distributions: Rollover Amounts
• In-Service Distributions: Factors Other Than Age
• Plan Loans and Hardship Distributions
• Summary Plan Description 

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