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qualified retirement plan

Using An IRA Rollover to Eliminate Federal Spousal Rights

An IRA could be useful to restrict certain inherent rights that are required within qualified retirement plans covered by ERISA.

The Post-55 Exception to the 10% Penalty for Withdrawals from 401(k)

Introducing the age 55 exception for a withdrawal from a 401(k) plan. Penalty free, with some restrictions applied.

Converting an Inherited 401(k) to Roth

Things to consider with an inherited 401(k) plan – such as, you can convert the plan to a Roth IRA, enjoying tax-free withdrawals afterward.

Which Account to Take your RMDs From

You have a decision to make when it comes to taking RMDs from your IRAs. You’re allowed to take them all from one, or one from all.

Arguments in Favor of a Rollover

Should you rollover that old retirement plan? In many cases, it makes a lot of sense. But not in all cases, of course.

Leaving Your IRA to Your Family First, Then to Charity

There is a way to leave your IRA eventually to a charity, but first provide some funds to your family, and save taxes to boot – the CRT.

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).

Required Minimum Distributions and the Successor Beneficiary

How to handle Required Minimum Distributions when the original beneficiary dies and a successor beneficiary takes over.

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.

When a 60-day Rollover is Not a 60-day Rollover

Review of a PLR that provides relief for a taxpayer who did not complete a rollover within the required 60 days.

16 Ways to Withdraw Money From Your 401k Without Penalty

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

Adjusting Your Withholding and Estimated Tax Payments

If you regularly have a large tax payment or large refund, you should review and adjust your withholding to be more efficient.

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.