The IRS recently released the 2014 version of Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. The form, along with the accompanying instructions, is updated each year and is filed by the IRA owner to report certain penalty taxes they may owe with respect to their IRA. What are these tax penalties and how could they affect your account value?
We are down to the last two months of the year. It is time for those who have required minimum distributions (RMDs) from a retirement plan to make sure that those distributions are taken. Following is a list of those who have required distributions for the year.
IRS can waive penalties and fees for several different instances. However, one area they can't save the unknowing taxpayer is the once-per-year IRA rollover rule. We go through the recent private letter ruling (PLR 201440028) to illustrate how the rule is set in stone.
Most people are familiar with the basic rules for the pre-tax salary deferrals and employer contributions that are the most frequent types of money found in 401(k) and similar plans. Few, however, are aware of the rules for after-tax contributions to the “traditional side” of such plans and the unique rules and planning opportunities that can present themselves. That’s begun to change over the last week, however, since the release of IRS Notice 2014-54, which provided exceptionally favorable guidance for people with after-tax money in their 401(k) and similar plans.
With college expenses at some of the best schools now exceeding $60,000 per year, education related expenses are fast becoming one of the biggest obstacles many baby boomers face when saving for their own retirement. For many families, planning for a college education goes hand in hand with IRA’s and retirement planning. Below are three ways smart IRA planning can help you pay less for college.
Can you contribute to a Roth IRA if you are already allocating salary deferrals to a Roth 401(k)? We provide the answer and look at the contribution requirements for both Traditional and Roth IRAs.
This week's Slott Report Mailbag looks at converting non-deductible funds to an IRA and the rules for taking a Roth distribution of contributed and converted funds.
If you own a business and you’re thinking about starting a retirement plan for 2014, you may want to look at a SIMPLE IRA Plan (Savings Incentive Match Plan for Employees). We look at the plan's basic tenets and urge interested parties to plan now. The deadline for starting a new SIMPLE IRA plan for this year is right around the corner.
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