The pro-rata rule - another complicated intersection of moving IRA money. It's an important rule to know when thinking about distributing funds from your IRA, so we decided to break it down below into 3 things you need to know.
You are not allowed to invest your IRA money in collectibles such as artwork, rugs, stamps, gems, alcoholic beverages such as fine wine, and antiques. If you invest any part of your IRA in a collectible, you will get a tax bill for it. The Tax Code treats your investment in a collectible as a distribution, which means it’s taxable to you. Also, if you’re under age 59 ½ at the time of the investment, the deemed distribution will be subject to the 10% early distribution penalty tax too. The entire value of your IRA is not deemed distributed to you, only the amount invested in the collectible is taxable.
I talked to two different advisors this week who had almost the exact same story involving inherited IRAs.
A client inherited a small IRA from a parent and the kind bank employee gave them a check. Wouldn’t this make most beneficiaries happy? Not necessarily. Click to find out why.
This week's
Slott Report Mailbag looks at how long you have to store year-end retirement account statements as well as how a spousal beneficiary should do if he or she decides to leave a deceased spouse's IRA separate from their own. Click to read this week's Q&A with our IRA Technical Consultant.
On July 1, 2014 the Treasury Department released the long-awaited final regulations for Qualifying Longevity Annuity Contracts (QLACs). These new annuities will offer you a unique tool to help make sure you don't outlive your money. The QLAC rules, however, are a complicated mash-up of IRA rules and annuity rules, and you may need help in understanding their key provisions. To help you understand some of the most important aspects of QLACs, below are 3 critical QLAC questions and their answers.
If you participate in a company retirement plan, such as a 401(k), there's a way you can take a distribution and get out of paying the 10% early distribution penalty if you're under age 59 ½ at the time of the withdrawal. The rule is sometimes called the “age 55 rule.” Click to learn more about this rule.
We have talked about inheriting IRAs as a younger spouse as well as QLACs (qualified longevity annuity contracts) and their compatibility with IRAs now that they have meshed with IRA required minimum distribution (RMD) rules. Along with the articles below, we gathered in Chicago just over one week ago for a video roundtable to answer some of the frequently asked questions on the topics as well as provide advisors and consumers with an educational audio/visual component.
Most of the time we are telling you how important it is to check IRA beneficiary forms to be sure they reflect your current planning objectives – such as the stretch IRA. It is also important to check the IRA agreement or an employer’s summary plan description (SPD) for the plan. Click to find out why.
This week's
Slott Report Mailbag looks at potential annuities that can be rolled over to IRAsas well as a follow-up question on a younger spouse inheriting an IRA. Click to read this week's Q&A with our IRA Technical Consultant.
The Beneficiary isn't the only thing you must check on your own or a client's beneficiary form. Here's a list of 3 other important things to make sure are present on the beneficiary form.
