IRS Form 5329

Don’t Make This Common RMD Mistake – It’s a Big Penalty!

With the first group of Baby Boomers turning age 70 ½ this year, there is a whole new group of IRA owners who will begin taking required minimum distributions (RMDs). It is important that they know the rules about aggregating RMDs in order to avoid this frequent mistake made by individuals, advisors, and even IRA custodians and employer plans.

Missed Your 2015 RMD? Keep Calm and Take These 3 Steps

Did you take your RMD from your IRA for 2015? Hopefully, the answer is yes because for most IRA owners and beneficiaries the deadline for taking a 2015 RMD was December 31, 2015. There is an exception. If you reached age 70 ½ in 2015, you still have time. Your deadline for taking your 2015 RMD from your IRA is April 1, 2016. However, if you missed your 2015 RMD, stay calm and follow these three steps.

Illiquid IRA Assets and Satisfying Your RMD

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?

Required Minimum Distributions and the Roth Recharacterization Issue

When you have an IRA required minimum distribution (RMD) for the year, you generally use the prior year-end IRA account balance to calculate the RMD. There are a couple of exceptions to this rule and Roth recharacterizations are one of them. We provide an example that illustrates why not knowing the RMD rules can be very costly.

Who Has an RMD for This Year?

The year-end required minimum distribution (RMD) questions are starting to come in. This one came in from an advisor. Melissa and her spouse Gary both turned age 70 this year. Melissa’s birthday is in May and Gary’s is in September. Who has an RMD for this year?

10 Facts You Need to Know About Required Minimum Distributions

If you have an IRA and you are approaching retirement age, or if you are already in retirement, you are most likely familiar with the term “required minimum distribution (RMD).” But do you know how the rules work and what they mean for you as an IRA owner? Here are 10 facts about RMDs that every IRA owner should know.

Can You Use Your IRA to Buy Health Insurance?

We were recently asked whether you can use your IRA to buy health insurance. The short answer to that question is yes, but it will cost you. We explain the tax and penalty implications and possible exceptions for which you may qualify.

Did You Miss an RMD in 2014? 3 Steps to Fix This

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.

IRS Releases 2014 Form 5329 to Report Certain IRA Penalties

The IRS recently released the 2014 version of Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. The form, along with the accompanying instructions, is updated each year and is filed by the IRA owner to report certain penalty taxes they may owe with respect to their IRA. What are these tax penalties and how could they affect your account value?

Content Citation Guidelines

Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.

Please be advised that prior to distributing re-branded content, you must send a proof to [email protected] for approval.

For white papers/other outflow pieces:

Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC – depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC – depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.

For charts:

Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.

For Slott Report articles:

Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.

Please contact Matt Smith at [email protected] or (516) 536-8282 with any questions.