Retirement

  1. If a trust is named as the beneficiary of an IRA, can the trustee of that trust become ...

    While the IRA owner is alive, only the IRA owner can change the designated beneficiary of the IRA. Exceptions may apply if there is an attorney-in-fact, in which a power of attorney includes provisions that appoint that agent to act on the IRA owner's behalf.
  2. Deducting Losses On Your IRA Investments

    In regular accounts in which taxes are not deferred, losses on investments can be included on your tax return. Find out how.
  3. Is it permissible for a 70-year-old person to buy an IRA?

    It depends. For Roth IRAs, there are no age restrictions. For Traditional IRAs, there are no age restrictions if you are establishing a new IRA to which you will transfer or roll assets from another IRA or eligible retirement plan, such as a qualified plan, 403(b) account or 457(b) account.
  4. I am over 60 years old and have a Roth IRA to which I have made contributions for ...

    Because you meet the five-year requirement (i.e. it has been five years since you first established and funded a Roth IRA) and you are at least age 59.5, all distributions from your Roth IRA(s) will be tax and penalty free. The Roth IRA rules do not require any waiting period for investments; however, ...
  5. Can I roll over my IRA assets to a sheltered Canadian plan?

    It does not appear that this is an option for you. The current version of the U.S. Code and the U.S./Canada Treaty do not allow for transfers or rollovers between U.S. and Canadian retirement plans. Furthermore, the Canadian retirement plan may not consider the assets eligible (to be transferred to the ...
  6. I want to purchase a five-year period certain single premium immediate annuity (SPIA) ...

    The income from a SPIA IRA is subject to the early distribution penalty unless an exception applies. As you may know, the substantially equal periodic payment (SEPP) exception is usually calculated by using one of three IRS approved safe-harbor methods.
  7. Can my spouse and I use our IRAs to purchase our first home?

    IRA owners can make penalty-free distributions to buy a first home for themselves, their spouses, children, grandchildren or other family members. This distribution cannot exceed $10,000 for each spouse's lifetime, and exempts IRA owners from the early-distribution penalty (which applies to distributions ...
  8. Can I roll my SEP IRA into a Traditional IRA or should I convert to a Roth?

    Technically, the SEP IRA and the Traditional IRA are the same type of account. The only difference is that the SEP IRA is allowed to receive employer contributions. Therefore, you can combine the SEP IRA into the Traditional IRA without any ramifications.
  9. Need Retirement Income? Sell Your House!

    Discover 10 tips for making a quick sale and a healthy profit.
  10. I'm about to retire. If I pay off my mortgage with after-tax money I have saved, ...

    Only you and your financial advisor, family, accountant, etc. can answer the "should I?" question because there are many more factors that aren't in the assumptions you included, and a lot of them relate to your own gut feel. It would be easy if paying off a mortgage were ONLY just another investment.
  11. Enjoy Life Now And Still Save For Later

    Find out how to balance living well today and retiring well tomorrow.
  12. Health-y Savings Accounts

    HSAs can provide a new way to save for retirement and medical expenses.
  13. How To Cure An Ailing 401(k)

    High-cost, outdated plans can prevent your retirement portfolio from thriving.
  14. Can I roll my 401(k) and/or IRA funds into a more liquid investment fund without ...

    Choosing your retirement plan investments requires the assistance of an expert who is able to analyze your options and to help you choose the investments that best suit your profile. The investment advisor will take into consideration your risk tolerance and how soon you plan to retire.
  15. If I participate in my company’s SIMPLE IRA plan, can I also contribute to ...

    Because the SIMPLE IRA contribution limits are much lower than the 401(k) limits, it might at first seem unfair that you can't get a larger a tax deduction with an additional IRA contribution. However, the rules concerning IRA deductibility are actually similar for 401(k) plans and SIMPLE IRAs; therefore, ...
  16. How do I get credit for my retirement plan contributions?

    There is an added incentive for adding to your retirement nest egg, if your income falls within certain limits. Under this incentive program, you are eligible for a non-refundable tax credit of up to $1,000 for contributions you make to an individual retirement account (IRA), or salary deferral contributions ...
  17. Letter Of Instruction - Don't Leave Life Without It

    This simple document can take the guesswork and headache out of settling your estate.
  18. Is my husband's ex-spouse entitled to receive my spouse's retirement benefits?

    The rules vary among retirement benefits. In some cases, because you are the current spouse, you will be treated as the beneficiary by default. This would be so even if your spouse named someone else as the beneficiary. However, a named beneficiary may challenge the default provisions, resulting in costly ...
  19. Can an IRA beneficiary roll the IRA over into another account and designate another ...

    It depends on the provision of the IRA plan document. Some (though very few) do not allow the designation of successor beneficiaries. The good news is that most do. If the beneficiary designates a successor (second generation) beneficiary, the successor beneficiary must continue distributions based on ...
  20. Unexpected 1099-R Form: What To Do

    Did your IRA custodian report distributions you thought were non-reportable? Find out what went wrong.
  21. I converted my former IRA to a Roth for tax purposes in 1998, so even though the ...

    Because you are over age 59 ½, you will not owe any early-distribution penalty on any distributions you take from your Roth IRA. Also, because it has been more than five years since you established your first Roth IRA and you meet one of the exceptions (being at least age 59 ½), you will not ...
  22. Can my spouse and I convert our IRAs to Roth IRAs regardless of earned income?

    You may be eligible to convert your Traditional IRA to a Roth IRA regardless of whether you have earned income. However, if your modified adjusted gross income (AGI) exceeds $100,000, you are not eligible for a Roth conversion. If you meet the following conditions, you are eligible to convert your assets ...
  23. How can I make sure that past IRS errors have been corrected?

    It depends. If these were Traditional IRA contributions, they may be reflected on your tax return. Otherwise, you may ask for written confirmation from the IRS that the errors were, in fact, corrected and that the corrections are now properly reflected on your records.For more information, read Avoiding ...
  24. I have several jobs. Can I contribute the maximum to multiple employer retirement ...

    It depends. A question such as this requires detailed information in order to provide a helpful response. Here is a general response that may be of help. Questions: Are any of these companies related or affiliated? For instance, are they owned by the same people? Do you own any of the companies? Are ...
  25. I didn't earn any income this year. Can I still contribute to a Roth?

    Wages from past years can't be used as a basis for making contributions to a Roth in the current year. In order to establish a Roth, you must have earned taxable compensation or self-employment income for the year. If you did not earn income this year, you are not eligible to contribute.To learn more ...
  26. I just opened an IRA. What can I do to help my money grow?

    For individuals who are just starting to save, certificates of deposit can be a good place to start, but the interest rates are usually low.You may want to speak with the investment advisor at your bank about the investment options available to you. The investment advisor may recommend investment options ...
  27. Business Owners: Rules For Qualified Retirement Plans

    Business owners need to take note of how they handle qualified-plan distributions to former employees.
  28. What are some common and useful retirement planner designations? Are they expensive ...

    Some common retirement planner designations are: Chartered Retirement Plans Specialist (CRPS) designation from the College for Financial Planning Certified IRA Services Professional (CISP) designation from the Institute Of Certified Bankers Certified Retirement Services Professional ...
  29. Can You Retire In Five Years?

    The countdown is on. Find out whether you'll be ready to leave the working world.
  30. Changes In Tax Legislation And Regulation

    Keeping on top of these amendments can help you avoid penalties and take advantage of benefits.
  31. Personal Pensions: Repackaging The Annuity

    Discover an investment that can provide a stable income once you've left the work force.
  32. I understand that I can withdraw from a 401k the year I turn 55 without the 10% penalty ...

    You are referring to the rule that states that distributions from your qualified plan (including 401k, profit sharing, money purchase plans and 403b plans) after you separate from service with your employer will not be subject to the 10% early-withdrawal penalty, provided the separation occurs in ...
  33. My husband has become eligible for a 401(k) plan (with no matching contribution) ...

    Your husband's employer should check the retirement plan box on line 13 of the 2005 Form W-2 only if your husband elects to make salary deferral contributions to the 401(k) plan during 2005. The general rule for 401(k) plans is that an individual is not considered an active participant if no contributions ...
  34. Can I contribute to both a 401(k) and an IRA?

    If you contribute to your 401(k) account, you may still contribute to a Roth IRA and/or a Traditional IRA; however, your participation in the 401(k) plan may affect your ability to take a tax deduction for any Traditional IRA contributions. It will not affect the amount you are able to contribute.
  35. I work for a university, and I have a 403(b) with TIAA-CREF. But TIAA-CREF says I ...

    It depends. The IRS does permit the transfer of assets between 403(b) providers; however, employers and 403(b) providers are not required to allow such transfers. Generally, the transfer is permitted only if the new 403(b) account (to which the assets are being transferred) is subject to the same (or ...
  36. Mistakes In Designating A Retirement Beneficiary

    Make sure your beneficiary designations not only reflect your intentions but also meet the requirements to be effective.
  37. Can 529 plans be used to transfer wealth to other family members if the original ...

    Yes, the 529 plan (also known as a "qualified tuition program") allows you to distribute and roll over funds from one 529 plan to another 529 plan for the benefit of a member of the original beneficiary's family. The rollover must be done within 60 days after the date of the distribution.
  38. Can an IRA owner disclaim his widow's account but exclude one spendthrift contingent ...

    From your question, it appears that the widow is the sole primary beneficiary, in which case any portion properly disclaimed by the widow to be passed to the contingent beneficiaries. If this is the case, the beneficiary to which you refer would be entitled to his share, unless he chooses to properly ...
  39. IRA Contributions: Eligibility And Deadlines

    Use this checklist for contribution requirements to make your payments on time.
  40. Can I roll over a profit-sharing plan to an SEP IRA account without suffering any ...

    It depends. If the transaction is processed as a direct rollover to the SEP IRA, then no taxes will be withheld. Through a direct rollover, the assets are made payable to the SEP IRA custodian (or trustee or plan to which the assets are being rolled).
  41. Can I borrow from an IRA without penalty?

    Yes. A 60-day rollover rule applies to all types of IRAs. This 60-day rollover rule allows you to withdraw assets from your IRA and roll over the amount within 60 days in order to avoid paying taxes and/or the early distribution penalty on the amount.Some reminders:- You may distribute and roll over ...
  42. I have a small business, and I'm considering setting up an SEP IRA. What are leased ...

    Generally, a leased employee is the employee of an outside organization from which you lease the employee's services. For instance, you may use the services of a payroll clerk who is really employed by another organization; the other organization (the leasing organization) leases the services of its ...
  43. I am in the second year of taking SEPP distributions from my IRA. Can I transfer ...

    The most recent guidance issued by the IRS and the Treasury Department is Revenue Ruling 2002-62. There is some disagreement in the field about the definition of account as it relates to "changes to account balance" in this ruling and both sides make convincing arguments.
  44. Should I start taking my RMD based on the amount in my account when I turn 70.5?

    Because your balance may have changed from December 31 to the date you reach age 70.5, using that balance may result in an inaccurate calculation. To play it safe, you should calculate your required minimum distribution (RMD) based on your account balance as of December 31 of the previous year.
  45. What's the best kind of IRA for a 20-something?

    There probably is no 100% correct answer here, but let's break it down. Suppose that you are 23, you've been working for a couple of years and are now earning $50,000 per year. For 2008, you can contribute up to $5,000 to an IRA (Traditional, Roth or a combination of both).
  46. Bear-Proof Your Retirement Portfolio

    Find out how to protect your assets so you can live out your dreams in style.
  47. I participate in a profit-sharing plan at work. If I retire at age 62, will I be ...

    The money in your profit-sharing account will be taxable when it is withdrawn from the account. You may leave the money in the plan (if the plan allows it) or roll over the balance to an IRA.Most financial planners would recommend that you do not leave the funds in the profit-sharing plan after you leave ...
  48. Healthy Survival Guide For Sandwiched Boomers

    Caring for children and parents is squeezing baby boomers' finances. Find out how to cope.
  49. Top 7 Social Security Myths: Exposed

    A look at several myths that surround Social Security benefits.
  50. Bankruptcy Protection For Your Accounts

    Will the plan assets you've worked hard for be safe if you experience a personal financial crisis?
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