Retirement plans are intended to be used for retirement. However, sometimes life gets in the way and you need to tap those funds early. Generally, when you take a distribution from your retirement plan prior to reaching age 59 1/2, you will be hit a with a 10% early distribution penalty. However, there are some exceptions to the penalty. Determining whether an exception applies can be tricky because some exceptions apply only to IRAs and some apply only to company plans. Other exceptions apply to both. Take our 10% early distribution quiz and see how well you know these complicated rules.
This week's Slott Report Mailbag looks into into IRA contributions and rolling over 401(k) assets from former employers.
A very common mistake on the part of IRA owners and plan participants is thinking that distributions taken because of their financial difficulties are tax and penalty free.
Do you have an HSA? Have you thought about what will happen to those funds after you are gone? You may be surprised. At your death, any funds remaining in your HSA are payable to the beneficiary you name on the account. If your spouse is your beneficiary the news is good. If your kids get your HSA, they may not fare so well.
This week's Slott Report Mailbag looks into SEP-IRAs, 403(b)s and inherited IRAs.
The internet can be a blessing and it can be a curse. It is a fantastic place to do research on almost anything, but is the information you find current and accurate? Here are five things to consider when doing internet research into retirement questions.
Nothing lasts forever. This includes tax deferral on your IRAs. Eventually, Uncle Sam is going to want his share and will require funds to come out of these accounts. That is when required minimum distributions (RMDs) must begin. What if you don’t need the money? What if you don’t want a tax hit? Here are five strategies to reduce your RMDs.
This week's Slott Report Mailbag looks into taking RMDs from multiple accounts, 60-day rollovers and the once-per-year rollover rule.
Most IRA accounts hold pre-tax contributions and rollover amounts from employer plans. For purposes of this blog, I am going to assume that there are no after-tax amounts held in any IRA, including SEP and SIMPLE IRAs.
As the summer heats up, healthcare remains a hot topic. Will the ACA survive? Will Congressional Republicans succeed in repealing and replacing it? As we reach July these questions remain unanswered. One thing that is clear, however, is that Health Savings Accounts (HSAs) are playing a significant role in the healthcare deliberations. Proponents advocate expanding these accounts as a way to save on health costs and get a tax break. Opponents argue that HSAs can’t help those who cannot afford to fund them.
