There are two types of tax reporting for IRA accounts: the reporting that is mandatory for IRA custodians and the subsequent reporting that must be done by the IRA owner or beneficiary. Here's what you need to know about each.
Intricate questions to kick off the new year. One consumer has a question about moving pre-tax money to post-tax accounts, while another is getting conflicting answers about utilizing his IRA for ministry housing. Finally, we answer a question on what's sure to be a popular topic in 2016, the tax reporting of hard-to-value IRA assets.
A new year brings new retirement account rule changes. IRA Analyst Sarah Brenner dissects six retirement account rule changes that you need to know. Everything from qualified chartiable distributions (they are back!) to SIMPLE IRAs and expanded penalty-free distributions for higher education expenses are discussed.
As 2015 draws to a close, the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) was signed into law on Friday, December 18. Buried in this legislation, which is over 2,000 pages long, is a provision that expands your ability to take a penalty-free distribution from your IRA for higher education. We examine qualified education expenses and the addition of computer expenses in the possible penalty exceptions.
The leaders of Congress promised us that they would deal with the issue of expired tax breaks early in the year so that the American public could proactively go forth with their tax planning based in reality. Well, that didn’t happen. It appears that neither Republicans nor Democrats have the ability to pass timely tax legislation. So, here we are again.
Are you facing big college tuition bills? Generally, if you take a taxable distribution from your IRA before you reach age 59 ½, you will be subject to an additional 10% early distribution penalty. However, an exception to the penalty allows you to take a penalty-free distribution from your IRA if you use the funds for qualified higher education expenses. If you decide to tap your IRA early in order to pay for education costs, you will want to avoid these four mistakes that others have made.
This week's Slott Report Mailbag looks at the process of reporting IRA distributions on your tax return - and what happens if you pay too much tax? - answers a question about a woman's rising Medicare Part B premiums and points out the key 401(k) employer plan provision that could allow you to move employer plan funds outside the plan while still a plan participant.
Are you retired? If so, you may think that a Roth IRA is not for you. Before deciding if a Roth IRA will benefit you as a retiree, here are 10 facts that you will want to know.
An advisor called about a client who has a bond in his IRA that is in default. He has not taken his required minimum distribution (RMD) from that IRA account for the last three years because the bond is illiquid at this point in time. He does have other IRAs. What should he do?
In the past few weeks, there has been upheaval in Congress. With the retirement of House Speaker, John Boehner, the Republicans in the House of Representatives are struggling to elect and unite behind a new Speaker of the House. This turmoil has far-reaching consequences as Congress has a packed legislative agenda and the end of 2015 is rapidly approaching. If you are an IRA owner considering a Qualified Charitable Distribution (QCD) for 2015, Congress' disorder has implications for you.
