On May 22nd, Congressman Richard E. Neal (D-MA) introduced H.R. 2117, The Retirement Plan Simplification and Enhancement Act of 2013, in the House of Representatives. H.R. 2117 is proposed legislation that is intended to boost retirement savings.
Ed Slott's Elite IRA Advisor Group is a membership group of financial advisors who are committed to their IRA education and serving their clients' best financial and retirement planning interests. At our last workshop this May in Dallas, Texas, Ed Slott and Company IRA Technical Consultant Jeffrey Levine spent some time with several members to get their perspective on the educational expertise they receive and how it has elevated their standing in the industry and enhanced their business. Below are two roundtable discussions with seven members of Ed Slott's Elite IRA Advisor Group.
In late 2009 IRS started a project on rollovers as business start-ups (ROBS). This is a strategy that has been heavily marketed by several companies and targets individuals that want to finance business ventures using their retirement funds. They are directed to establish a self-directed IRA, a corporation, and a 401(k) plan for the corporation. The plan allows participants to roll in IRA funds.
An interesting question came up recently that went something like this… Mom died with two IRAs. She had two children, who we will call Deborah and Edward. The beneficiary of one of her IRAs was her children, 50% each. The beneficiary of the other IRA was a trust for the benefit of her children. Each child was a 50% beneficiary of the trust. Click to read more about this complicated scenario.
Summer is almost here, as the unofficial start to the summer season begins with Memorial Day weekend. To celebrate, we open some IRA, tax and retirement planning mail and answer several of your most pressing questions. This week's Slott Report Mailbag looks at some intricate IRA issues along with a question about the provisions in the new tax law.
There are a number of excuses, more formally known as exceptions, that you can use to get out of the 10% penalty and lessen your tax burden. One such exception is for disability. Below, we discuss five important facts you need to know about this exception if you plan on trying to use it to avoid the 10% penalty.
In order to make an IRA contribution, you must be younger than age 70 1/2 for the year and also have wages or compensation from your job. Once you make your IRA contribution, then you have to figure out whether it's tax deductible or not.
If a business owner is considering starting a retirement plan for himself and his employees, he may want to consider an employer-sponsored IRA. While employer-sponsored IRAs are not very well known, even to many tax pros and CPAs, they offer some unique advantages from other employer retirement plans.
If you inherit the IRA of an individual who has a required distribution for the year, you – as the beneficiary – must take any remaining required minimum distribution (RMD). Here is a situation that deals with this issue. John and Sue were both 75 years old last year. They both took their RMDs for the year. John died early in December. Sue was his beneficiary. She rolled his IRA into her own IRA in January. The question was – “What is Sue’s RMD for this year?"
With no state income tax to worry about, Texas residents don't have to worry about the state tax impacts of making IRA contributions. Since there is no state income tax, a deduction for making an IRA contribution is irrelevant. Plus, when IRA distributions are made in the future, Texas residents will only owe federal income tax on those distributions (assuming the Texas' tax laws remain the same). If you happen to live in one of the other 43 states, figuring out the state income tax consequences of making an IRA contribution is likely to be a bit more taxing (pun definitely intended).
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