Ryan Fortese

Bene Missed First RMD

What happens when a beneficiary misses their first RMD? IRS answered this question recently in Information Letter 2016-0071 in response to an inquiry. The question was if the 5-year rule was automatically required when a non-spouse beneficiary named on the beneficiary form missed their first required minimum distribution (RMD) in the year after the death of a Roth IRA owner. As unbelievable as it may seem, IRS had never before directly addressed the issue of a beneficiary missing their first RMD.

Using Your IRA to Buy Your First Home

Your IRA savings are intended to be used for your retirement. However, if you are like many others, your IRA may be your biggest asset. If you are looking to become a home owner, you may need your IRA funds to make that happen and there is a special break in the tax code that can help you.

Disability and the Exception to 10% Early Distribution Penalty

Distributions taken from an IRA before attaining the age of 59 ½ are generally subject to an early distribution penalty of 10% of the taxable amount of the distribution. Congress put the penalty in place to deter IRA owners from using their funds before their retirement. However, Congress also realized that sometimes we really do have a need for these funds so they made some exceptions to the penalty. One of these exceptions is the disability exception. But there is a catch.