IRA distributions that you take before age 59 ½ are considered early distributions that are subject to an IRS 10% early distribution penalty unless an exception applies. For IRAs, there are many exceptions to the penalty including death, disability, higher education, and others. A lesser known exception to the penalty applies if you use IRA funds to buy your first house.
Approximately half of all Americans work for employers that currently don't have a retirement plan. That works out to be around 78 million employees. This issue, combined with a declining national savings rate and the projected funding problems of the Social Security system, has forced some lawmakers to propose ways to entice Americans to increase their savings for retirement. One example of such proposed legislation is the Automatic IRA.
This week's Slott Report Mailbag focuses on Roth IRAs and answers some of the more popular questions we receive. Should I go through with a Roth IRA conversion? Do I have to take required minimum distributions (RMDs) from my Roth IRA? Click to read a Q&A with our IRA Technical Expert.
When managing your retirement account, you should be aware of the unexpected ways those employer-sponsored or IRA accounts could actually COST you. Jeffrey Levine details 3 of those situations in the article below.
On May 22nd, Congressman Richard E. Neal (D-MA) introduced H.R. 2117, The Retirement Plan Simplification and Enhancement Act of 2013, in the House of Representatives. H.R. 2117 is proposed legislation that is intended to boost retirement savings.
Ed Slott's Elite IRA Advisor Group is a membership group of financial advisors who are committed to their IRA education and serving their clients' best financial and retirement planning interests. At our last workshop this May in Dallas, Texas, Ed Slott and Company IRA Technical Consultant Jeffrey Levine spent some time with several members to get their perspective on the educational expertise they receive and how it has elevated their standing in the industry and enhanced their business. Below are two roundtable discussions with seven members of Ed Slott's Elite IRA Advisor Group.
In late 2009 IRS started a project on rollovers as business start-ups (ROBS). This is a strategy that has been heavily marketed by several companies and targets individuals that want to finance business ventures using their retirement funds. They are directed to establish a self-directed IRA, a corporation, and a 401(k) plan for the corporation. The plan allows participants to roll in IRA funds.
We are going back to basics in this week's Slott Report Mailbag with questions revolving around the foundation of IRA planning. Converting and accessing funds and avoiding penalties are the fundamental keys you and your financial team grapple with each day.
Life events happen. Marriage is one of those major life events that make you focus on not just the present, but the future. Ed Slott and Company IRA Technical Consultant Jeffrey Levine got married this past Sunday then sat down to talk about how you can name a non-spouse beneficiary of your retirement account.
An interesting question came up recently that went something like this… Mom died with two IRAs. She had two children, who we will call Deborah and Edward. The beneficiary of one of her IRAs was her children, 50% each. The beneficiary of the other IRA was a trust for the benefit of her children. Each child was a 50% beneficiary of the trust. Click to read more about this complicated scenario.
