How is it determined that an IRA has no owner? This will depend on both state law and the procedures in place at the institution holding your IRA or employer plan assets. If you have an IRA or an old employer plan where you are no longer making contributions, then there are no transactions taking place within the account. This could leave the account open to escheatment.
If you are a young worker, you, like many other members of the millennial generation, may be juggling student loans and expensive rent. Retirement? That is likely the last thing on your mind, although you may have a sneaking suspicion that the generous pensions that older generations enjoy probably will not be there for you. What can you do now to save for a more secure retirement? Well, for many millennials the Roth IRA is the way to go. Here are 5 reasons why.
If you or a family member encounter financial trouble, you may think that your IRA is a good resource to get you through the crisis. Be careful! While some company plans allow for loans, loans are not allowed from an IRA. To get around this rule, some taxpayers take IRA distributions to get quick cash and figure they will have resources to roll over the distributed amount within 60 days. This can be a dangerous plan as one IRA owner found out in a recent Private Letter Ruling (PLR).
Marriage changes a lot of things. Some things are not quite as obvious as others. We walk you through the key changes to your IRAs, Roth IRAs and overall retirement planning.
Another edition of the Slott Report Mailbag examines the power and process behind a stretch IRA and answers a tricky question about using the cost basis of employer stock to satisfy required minimum distributions (RMDs).
As with most IRA/tax strategies, the net unrealized appreciation (NUA) strategy comes with a few “don’ts.” Any one of these could mean a loss of your ability to take advantage of the NUA tax benefit.
When you leave an employer, you may assume that the right move is to roll over your 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. Read on to see why a tax break called Net Unrealized Appreciation (NUA) may make taking that distribution a good choice.
This week's Slott Report Mailbag discusses complex retirement planning topics with a charitable uncle interested in leaving his Roth IRAs to his grandnephews and nieces and an employee moving to part-time work who is still interested in contributing to his 401(k).
IRS does not have a crystal ball. Its team members don't know how long you are going to live. The life expectancy tables are based on statistics and do not take into account any of your personal information. Read on to discover what life expectancy table you should be using and how each works.
An HSA has been described as offering triple tax benefits. One, contributions are deductible. Two, there is no taxation on funds while they are in the HSA and, three, distributions taken for qualified medical expenses are tax-free. Not a bad deal! When you reach age 65, however, there are some important changes in store for your HSA.
