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.
A taxpayer's mental illness kept him from understanding how to proceed when his former bank decided to close his accounts and distribute all of his IRA funds. After his death, the widow realized she had unintentionally deposited the IRA funds into a non-IRA account. She filed a Private Letter Ruling (PLR) with IRS to rectify the issue. What did IRS decide?
The "I" in IRA stands for individual. There are many things you can do with your IRA - and we cover them at length in this space. However, there are also many things you CAN'T do with the account. Here's a list of five.
This week's Slott Report Mailbag examines how to title beneficiary IRA trusts and answers questions on moving non-IRA assets to inherited IRAs and accessing 403(b) funds and moving them to different accounts while still working.
Tax free just has a nice ring to it, doesn’t it? There are many types of tax-free income. Life insurance proceeds, qualified Roth IRA distributions and municipal bond interest come to mind as three of the most common sources. If these various types of income are all “tax free” though, does that mean that they all have the same, seemingly non-existent, impact on your tax return? Maybe, maybe not. Consider the following.
Victims of severe storms and flooding that started on August 11, 2014 in parts of Michigan may qualify for tax relief from the Internal Revenue Service. On September 26, the IRS issued News Release MI-2014-21, which extended certain deadlines for individuals and businesses affected by those storms. Read on to see if you are affected by these extensions.
The IRS website includes several valuable free employer retirement plan resources. One example is their newsletter Retirement News for Employers. There is a section of this specific newsletter that examines starting an employer plan. Read on for more details on this newsletter and other free IRS resources.
This week's Slott Report Mailbag looks at how a QDRO (qualified domestic relations order) works with 401(k) withdrawals and details the IRA beneficiary process. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. You can find one in your area here.
IRAs are U.S.-based retirement accounts. Today, however, more than ever we live in a globalized world. Many U.S. citizens work, sometimes for many years, overseas. The reverse is also true. And many of our country’s citizens still have many close friends and family overseas. Put all that together and today, it’s possible that you may have questions about how the IRA rules work when either you or your beneficiaries live abroad. With that in mind, below we tackle three of the most common questions.
Since the release of IRS Notice 2014-54 on September 18, 2014, there has been some confusion over whether the rules in that Notice apply to converting IRA funds to a Roth IRA. Notice 2014-54 provides favorable guidance for people with after-tax money in their company retirement plan, such as a 401(k). As a result of the Notice, if you have after-tax funds (basis) in your company plan, you may be able to convert some of your retirement savings to a Roth IRA tax-free.
