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2 Good Reasons to Use Direct Rollover From a 401(k) Plan

When moving funds from a 401(k) plan to an IRA or to another qualified plan, a direct rollover solves some potential problems.

Required Minimum Distributions (RMDs) Don’t Have to Be in Cash, But…

Did you know that you may be allowed to take distributions from your IRA in-kind? That includes Required Minimum Distributions (RMDs).

Forget your RMD? Here’s What to Do

If you forgot your RMD, you need to take action as soon as you realize it. Not doing so can be very costly!

Which Retirement Account Should You Tap First?

Wondering which retirement account you should access first? This article walks through some of the requirements and consequences to know.

More Clarification on Rollovers and Transfers

I’m compelled to provide an additional update to the posts I’ve provided in the past in the article Running Afoul of One Rollover Per Year Rule and its follow-up More on the One-Rollover-Per-Year Rule. This is primarily to provide clarity to a portion of this rule that I personally was unclear on when the articles were originally written. The rule is that you are restricted to one IRA rollover in a 12-month period. So let’s define a few things for the purpose of this discussion: Rollover – this is when you move money from one IRA to another, first taking possession of the funds prior to depositing the funds into the new (or the same old) IRA account. You have 60 days to complete this process. At the end of the tax year you’ll receive a 1099R from the original custodian, with a distribution code of 1 or 7 (this […]

Required Minimum Distributions for IRAs and 401(k)s

There are differences in how Required Minimum Distributions are handled between an IRA and a 401(k). Here’s your primer.

16 Ways to Withdraw Money From Your 401k Without Penalty

There are several ways you can withdraw money from your 401k without penalty.

Inherited 401k plan

Distributions for an inherited 401k plan can be complicated, because there are many factors to consider – your age, the age of the original owner, etc.

You’re Not (necessarily) In Control

You may think you’ve got control over your 401k account. But it’s not necessarily so – your employer can make changes that affect your results.

The 457(b) Special Catch-Up

If you’re a governmental employee, you may be aware that your employer offers a 457(b) retirement plan. Additionally, you likely know that like a 401(k), the 457(b) allows you to contribute $19,000 annually to the plan with an additional $6,000 catch-up for those aged 50 or older. What you may not be aware of is the special catch-up provision the 457(b) offers. This special catch-up provision allows a governmental employee that is within 3 years of the normal retirement age (as dictated in the plan) to contribute up to twice the annual amount ($38,000 for 2019). To take advantage of this special contribution the plan sponsor (employer) must allow it in the verbiage of the plan. Additionally, the employee must have unused contribution amounts from prior years. In other words, an employee can contribute twice the amount normally allowed if that employee has unused contributions from prior years; they didn’t […]

Early Withdrawal from Retirement Plans

If you’re considering an early withdrawal from your retirement plan, there are tax consequences that you need to be aware of.

IRA RMD Reporting

IRA RMD reporting may be a mystery – it’s not that complicated though. And the IRS is watching your every IRA move, so never fear, they’ll know.

Non-Spouse Rollover of Inherited IRA or Plan

Is a non-spouse rollover of an inherited IRA allowed? It depends on what you mean by rollover. There are many restrictions for the non-spouse beneficiary.

Calculating your Required Minimum Distribution

Learn how to calculate your required minimum distribution for your IRA, 401k, 403b or other qualified retirement plan.

Rollover Risk

The idea of an IRA rollover, or a rollover IRA, isn’t necessarily a cosmic mystery – this happens all the time.  You leave your job, and you rollover your 401(k) to an IRA.  No problem, right?  Unfortunately, there often are problems with the process of moving funds from one account to another – because there are a couple of very restrictive rules regarding how this process can and cannot be done.  It’s not terribly complex, but you’d be surprised how easily these rules can trip you up. Rollover Risk Let’s start with a few definitions: A Rollover is when you take a distribution from one qualified plan or IRA custodian, in the form of a check made out to you, and then you re-deposit that check into another qualified plan or IRA account (at a different custodian). A Trustee-to-Trustee Transfer (TTT), even though it is often referred to as a […]

2017 Retirement Plan Contribution Limits

The IRS recently published the new contribution limits for various retirement plans for 2017.  These limits are indexed to inflation, and as such sometimes they do not increase much year over year, and sometimes they don’t increase at all. This year for the third year in a row we saw virtually no increases contribution amounts, and the income limits increased for slightly as they did for 2016. IRAs The annual contribution limit for IRAs (both traditional and Roth) remains at $5,500 for 2017 (third year without an increase).  The “catch up” contribution amount, for folks age 50 or over, also remains at $1,000. The income limits for traditional (deductible) IRAs increased slightly from last year: for singles covered by a retirement plan, your Modified Adjusted Gross Income (MAGI) must be less than $62,000 for a full deduction; phased deduction is allowed up to a MAGI of $72,000.  This is an […]