You just hit the magical tax code age of 70 1/2 and decided it was time to move those employer plan retirement funds to an IRA. You must take your required minimum distribution from the plan first. What happens if you don't? IRA Technical Expert Beverly DeVeny outlines the consequences and how to correct them.
This week's Slott Report Mailbag goes situational - looking at an individual who forget to take his RMD (required minimum distribution) before rolling over his pension plan to an IRA, a woman who wants to find the best path to leave her IRA to her three sons and an employee who was re-hired by his old company and wants to know if he can roll his original 401(k) plan to an IRA. We have the expert answers.
Is your spouse really your spouse (for retirement plan purposes)? We go through several court cases that illustrate how things may not seem as they appear when it comes to your "wives" and retirement plan beneficiaries.
For anyone who did a Roth IRA conversion in 2010, you have now fulfilled the 5-year waiting period for taking penalty-free distributions from your 2010 Roth conversion. You have also passed one test for taking a qualified distribution. Here's what else you need to know about the Roth IRA 5-year clock.
In this week's Slott Report Mailbag we answer questions on (dreaded) excess IRA contributions and the penalties involved as well as whether an individual can start taking RMDs (required minimum distributions) only to start working again and halt taking them.
IRS has updated several retirement-related publications. They are now available on the IRS website, www.irs.gov under Forms and Pubs. They will all say that they are updated for 2014 so you can use them in preparing your 2014 federal income tax return. However, they also will have the current contribution limits and other necessary information for this year.
We spent the early part of the week looking at both sides of when you should take your RMD (early or late in the year). However, if you waited until the end of the year and then missed taking your RMD, here's how to correct it.
This week's Slott Report Mailbag answers questions on how Roth conversions affect Medicare premiums, how the rules governing IRA rollovers have changed for 2015 and what individuals who converted to Roth IRAs in 2010 are now free to do with the funds.
A taxpayer received a distribution from his company retirement plan after separating from service with the intent to make a direct rollover into a Roth IRA. However, things don’t always go by way of the best intentions. The financial institution deposited the distribution into an IRA instead of a Roth IRA. Private Letter Ruling 201452025 got IRS involved.
Private letter ruling (PLR) requests for IRAs are a means for taxpayers to request forgiveness from IRS and to allow them to complete an action that has, for some reason, been derailed. For instance, you can ask IRS to allow you to complete a Roth recharacterization after the deadline has passed or to allow you to complete a 60-day rollover after the 60 days have passed. This all comes with a substantial cost. Here are the facts and figures for 2015.
