Site search

i am 67 years single old women who is not on ss yet, i recently roll over my 403 b...

For many people, 2020 has meant leaving a job. Some jobs have disappeared. Some workers are taking early retirement. This means that many workers are receiving distributions from employer plans. Many individuals may assume that the right move is to roll over those retirement funds to an IRA. Not so fast! For many people, a rollover will be a smart decision. However, don’t assume that is always the way to go. In some cases, as strange as it may sound, taking a lump sum distribution and paying taxes is a smart choice. You may be wondering how that could be possible. Well, a tax break called Net Unrealized Appreciation (NUA) may make taking that lump sum distribution a good choice in 2020.

Client has approx. 800k in 401k value and 30k in after tax account. Plan allows employees to remove after tax...

With the popularity of Roth 401(k) contributions, after-tax employee contributions have gotten short shrift. But, if your plan offers them, after-tax contributions are worth considering because they can significantly boost your retirement savings. What are they? After-tax contributions are elective deferrals made from already-taxed salary. You make after-tax contributions to your plan the same way you make pre-tax or Roth contributions (if offered). Unlike earnings on Roth 401(k) contributions, earnings on after-tax contributions are always taxable.

My client recently received some equity positions from her grandmothers trust. The grandmother died in 1957. The trust was drafted...

An employer’s pension plan has 4 different QJSA options. The plan representative said RMD’s must begin by Aptil 1 after...

A client recently said Joe Biden wants to make Roth-IRA’s taxable upon death. Have you seen anything on this? Do...

New client of mine inherited her husband’s Thrift Savings Plan (TSP) account several years ago and the funds were moved...

Client is attempting to rollout his DC portion of his retirement contributions from the State of Washington Retirement System. The...

Question: An 85-year-old died in 2020 and left his IRA to his 53-year-old son. Father did not take 2020 $107,000 RMD. Does the son have to take it? Does the son have to take anything in first 9 years, including this RMD? Thank you. Answer: The CARES Act waived RMDs for IRAs in 2020. Even if an IRA owner dies in 2020, his year-of-death RMD still falls under the waiver. So, the $107,000 did not need to be withdrawn by the father, and it does not need to be withdrawn by his son beneficiary.