When a “Reverse Rollover” Makes Sense
When we think of rollovers, we normally think of moving funds from a 401(k) (or other company plan) to an IRA. But it sometimes makes sense to consider a “reverse rollover” – from an IRA to a 401(k).
Ian berger
60 Day Rollovers and RMDs Under the CARES Act: Today’s Slott Report Mailbag
Question:Hi,I have a client that took a $14k IRA distribution on 1/10/2021 and another $14k distribution on 2/10/2021. He wants to replace all $28k using the 60 day rollover as funds are no longer needed.Does the 60 day rollover rule allow him to replace all 28k (from both distributions) within 60 days from the first distribution on 1/10/2021?Or does the 60 day rollover rule only allow him to just replace one distribution taken (even though both were taken within 60 days of each other)? Thus, he can only put back $14k
What Happens if I Terminate Employment with an Unpaid 401(k) Loan?
One of the many unfortunate effects of the coronavirus pandemic is the number of folks who have lost their jobs. Besides the loss of income, many of these individuals also face unexpected and unpleasant tax consequences if they have an outstanding 401(k) plan loan.
Four Unexplained Tax Code Mysteries
The Internal Revenue Code is over 4,000 pages of often unintelligible tax jargon. So, it shouldn’t surprise anyone that the law contains more than its share of baffling and inconsistent provisions.Here are four examples pertaining to IRAs and company retirement plans:
SUCCESSOR BENEFICIARIES AND 401(k) ROLLOVERS: TODAY’S SLOTT REPORT MAILBAG
Question:I hope you can help me with this, as I cannot find the answer anywhere or from anyone.In 2019, my client Frank, passed away. His cousin, Lisa, inherited his IRA. In 2020, Lisa passed away. Her husband, Rob, inherited the IRA. They are all the same age.
AFTER CORONAVIRUS-RELATED DISTRIBUTIONS – NOW WHAT?
Coronavirus-related distributions (CRDs) are no more. Millions of Americans took advantage of the opportunity to make penalty-free withdrawals from their IRAs and 401(k) plans in 2020. But unless Congress resurrects them, CRDs are no longer available.Yet the economic damage caused by the pandemic is still very much with us. So, without CRDs, where do you turn for money to pay your bills?
New COVID-19 Stimulus Law Does Not Extend CARES Act CRD Relief
There’s been some confusion about the retirement plan aspects of the COVID-19 stimulus package signed into law on December 27, 2020.One national news network has reported that the new law extends the CARES Act tax breaks for coronavirus-related distributions (CRDs) into 2021. This is incorrect! At least for the moment, CRDs are no longer available.
ROLLOVER RULES AND REPAYMENT OF CRDs: TODAY’S SLOTT REPORT MAILBAG
Hello Ed,I have faithfully read the Slott Report for a long time. I must thank you for sharing your knowledge. However, it is finally my turn to write you with a question.I was quite fortunate to work for a company with an employer 401(k) plan. So, I faithfully contributed for years and now have both 401(k) and Roth 401(k) — principal and earnings — to retire on. My employer’s plan rules state that after I retire, I must take it all or nothing.
Happy New Year!
From The Slott Report, December 30, 2019:“2020 promises to be an exciting year in the IRA and savings plan worlds, as the full ramifications of the new SECURE Act begin to take shape. Beyond that, the IRS will likely finalize the new life expectancy tables expected to become effective in 2021.
Happy Birthday to the SECURE Act!
One year ago from yesterday (December 20, 2019), President Trump signed into law the SECURE Act. At that time, virtually no one had heard of the coronavirus and certainly very few (if any) could have foreseen the global pandemic that’s still very much with us.
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