Retirement

  1. I retired and transferred part of my pension distribution to a Roth IRA. If I am ...

    The age 55 exception applies only to distributions from qualified plans and 403(b) accounts. Once the assets have been credited to an IRA, that benefit no longer applies to those assets. You mentioned that you put part of your pension distribution in a Roth.
  2. Estate Planning For Canadians

    Trusts, wills, taxes and rules differ by country. Find out what you need to know about estate plans in Canada.
  3. My mother inherited my father's IRA. When she died, I received an account application ...

    If your brother cannot be found, you may want to check with the IRA custodian and/or the financial advisor to find out if the IRA plan document includes any provisions for such a situation. For instance, some IRA documents state that if a beneficiary cannot be found, that beneficiary will be treated ...
  4. How can a trust lower federal transfer tax liability?

    A trust is an arrangement in which an individual or entity controls property or funds on behalf of someone else without actually owning them. This can be done for tax purposes or to ensure the depositor's wishes are carried out. For example, a deceased grandparent can give a gift to a favorite grandchild ...
  5. Top 8 Estate Planning Mistakes

    Proper planning will help ensure that your wishes are honored and your heirs are well cared for.
  6. Alternative Investments In Your IRA

    If you stray off the beaten path when investing your IRA assets, you'll find new potential pitfalls and rewards.
  7. Can I convert non-deductible contributions made to my Traditional IRA to a Roth IRA ...

    You can convert the contributions to a Roth IRA; however, a portion of the amount you convert to the Roth will be subject to income tax. When your Traditional IRA balance consists of deductible and non-deductible contributions, any amount distributed or converted from the Traditional IRA is pro-rated ...
  8. Can I move my IRA to a better income-producing opportunity?

    Yes. You may want to compare the IRA products offered by different financial institutions. Once you determine the financial institution and IRA product you prefer, you may transfer your current IRA balance to a new IRA established at that financial institution.
  9. I converted a Traditional IRA to a Roth. The conversion was a stock equity with a ...

    Assets in IRAs do not carry a cost basis for tax purposes. Therefore, distributions and Roth conversions are taxed at the value of the assets based on their value at the close of business on the day the transaction is processed. In your example, the 1099-R should show an amount of $34,000.(To learn more ...
  10. What are the tax consequences of a Roth IRA distribution if the IRA holder is younger ...

    The tax treatment of a Roth IRA distribution depends on whether the distribution is qualified. Qualified distributions from Roth IRAs are tax and penalty free, but non-qualified distributions may be subject to tax and an early-distribution penalty (known as an excise tax).
  11. If I roll my annuity into an IRA and receive after-tax distributions, will this be ...

    Distributions of after-tax amounts (amounts already taxed) will not be taxable when distributed to you. However, you will be required to report the amount on your tax return as a non-taxable distribution. The plan should send you a Form 1099-R, which is used to report distributions from retirement accounts.
  12. I have two Roth IRAs, one of which has a balance that is much less than the total ...

    It depends. You are eligible to write off the losses only if the balance for both of your Roth IRAs (combined) is less than your aggregate contributions and conversions to both Roth IRAs, and you distribute the entire balance of both Roth IRAs. The loss is claimed on your Form 1040 - Schedule A as an ...
  13. Can I roll a Traditional IRA into a 529 college account for my grandchild?

    A 529 plan, also known as a "qualified tuition program", is an investment vehicle that allows individuals to save for education expenses at an eligible education institution. "Eligible education institution" refers to any college, university, vocational school or other post-secondary educational institution ...
  14. I'm 70.5 and still working for my own company. Can I defer starting my required minimum ...

    The option to defer starting your required minimum distribution (RMD) beyond age 70.5 is available only if the individual is not a 5% owner of the business. Five percent owners must begin RMDs by April 1 of the year following the year they reach age 70.5.
  15. Benefits for Members of the Armed Forces

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  16. Pension Protection Act Of 2006 Becomes Law

    Learn how the passed bill can help you save more for retirement.
  17. Can you have a 403(b) and also contribute to a 401(k)?

    Yes. You may participate in both a 403(b) and a 401(k) plan. However, certain restrictions may apply to the amount you can contribute. For instance, you are allowed to make a salary deferral contribution of up to $15,500 for 2007. The combined total salary deferral contribution that you make to both ...
  18. Who bears the investment risk in 401(k) plans?

    Who actually bears the investment risk in a pension plan depends on the type of pension plan that is employed. In a broad sense, there are two benefit formulas that will calculate the pension benefits the plan member will receive. In the case of a defined-contribution pension plan, the plan member (i.e.
  19. Leaving Inheritance To Children Easier Said Than Done

    Consider your own retirement needs when deciding whether to leave an inheritance.
  20. If I pass away, will my retirement plan go to my spouse tax free?

    If your spouse is the designated beneficiary of your retirement plan, the assets will pass to him or her tax free. The general rule stipulates that upon the death of a retirement plan participant or IRA owner, the retirement plan (or IRA) assets pass to the designated beneficiary tax free.
  21. If an IRA owner dies after starting required minimum distributions (RMD) but the ...

    If the IRA owner dies after the required beginning date (RBD) and his/her beneficiary is his/her spouse, the spouse beneficiary may either: Begin death distributions by Dec 31 of the year following the year the IRA owner dies. In this case, the distributions must be calculated using the longer of ...
  22. What should I consider when I select an executor for my will?

    The executor of a will is the person designated with the task of administering the will's instructions. The responsibilities of an executor include making sure all assets are accounted for, all existing debts and tax obligations are paid, and that remaining assets are distributed to the correct parties ...
  23. Can I pull out most of my assets from my IRA and use the cash as long as I replace ...

    Generally, for the distribution to be considered non-taxable, it must be rolled over (deposited) into the IRA (or another of your IRAs) within 60 days of receiving the distributed assets. After the 60-day period, any amount that has not been replaced cannot be rolled over and will be treated as taxable.
  24. Is divorce an exception to the SIMPLE IRA's two-year waiting period rule?

    First, some background: during the first two years after a SIMPLE IRA is established, assets held in the SIMPLE must not be transferred or rolled to another retirement plan. This two-year period begins the first day the employer deposits a contribution to the SIMPLE IRA.
  25. I earn more than the income limit for both a Roth and Traditional IRA deduction. ...

    It is always a good choice to fund the individual retirement account (IRA), even if the owner is not eligible to claim the deduction. The IRA owner can still choose to invest the amount in the same funds within the IRA, where the earnings are tax deferred.
  26. Will I incur a tax penalty when making withdrawls from my IRA in excess of my SEPP?

    Unfortunately, the IRA is "locked" for five years because of the requirement that the substantially equal periodic payment (SEPP) must continue for five years or until you reach age 59.5, whichever is longer. Should you withdraw more than the SEPP amount, the SEPP programs will be considered voided, ...
  27. Are any special forms or documents required when transferring an IRA/SEP/SIMPLE to ...

    Most firms require that you complete their account transfer request form, which they use to request the transfer of assets (to your receiving account) on your behalf. Other than this document and the paperwork used to establish the receiving account, there is no legal documentation required.Keep in mind ...
  28. Tax-Free Accounts Make Saving A Snap For Canadians

    In 2009, the Canadian government began allowing citizens to save more tax-free dollars than ever.
  29. The Reverse Mortgage: A Retirement Tool

    Discover another way to fund your retirement without having to make payments on a loan.
  30. The Top 3 Retiree Worries (And What To Do About Them)

    Discover the most common problems retirees face, and what they can do to solve them.
  31. What's Your Net Worth Telling You?

    Net worth provides a road map for retirement - learn if you're headed in the right direction.
  32. After receiving a required distribution when and how are my taxes affected?

    Any taxable amount of the distribution will represent ordinary income for the year that the distribution occurs and will be subject to income tax at your regular/ordinary income tax rate.If the amount is significant, it could put your income in a higher tax bracket.
  33. 3 Reasons To Use An Employer-Sponsored Retirement Plan

    If you aren't participating in your employer-sponsored retirement plan, you're missing out! Learn the benefits.
  34. An Introduction To The Roth 401(k)

    The money that you earn today is taxed today, making tax-free retirement withdrawals a reality.
  35. Discover Master Limited Partnerships

    These unique investments provide significant tax advantages.
  36. Roth Feature Boosts Benefits For 401(k) And 403(b) Plans

    Roth accounts tend to beat Traditional plans over the long term by providing tax savings.
  37. Are the distribution rules for 401(k) and 403(b) plans the same as those for IRA ...

    The distributions are different for IRAs, qualified plans and 403(b) plans.For IRAs, qualified plans (such as 401(k), money purchase and profit sharing plan), and 403(b) plans, distributions that occur before the participant reaches age 59.5 are subject to the 10% excise tax (early-distribution penalty) ...
  38. Can I roll my 403(b) and 457 into other low-cost venders when I change jobs?

    It is very likely than you will be able to roll over or transfer these amounts after you stop working for your current employer. To be sure, the 403(b) and 457 agreements should be checked to determine the events that result in eligibility for withdrawals from the plans.
  39. What is the difference between a ROTH, SEP and Traditional IRA?

    The Roth IRA was established in 1996 as the newest addition to the individual retirement accounts (IRAs) available to individuals. Its tax treatment differs greatly from most other IRAs. Contribution limits are the same as those for Traditional IRAs, but tax deductions are not available on contributions ...
  40. Avoiding Mistakes In Required Minimum Distributions (RMD)

    If you don't calculate your required minimum distributions accurately, you might have to pay an excise tax.
  41. Saving Money With A Private Annuity Trust

    Learn about a strategy that could help you reduce taxes, diversify your portfolio and generate income.
  42. 5 Retirement Questions Everyone Must Answer

    Find out what information you need to guide your planning and achieve your goals.
  43. Can I, without tax penalties, use the IRA I inherited from my father to buy a home ...

    If you inherited an IRA from someone who was not your spouse at the time he/she died, the amounts that you receive as a distribution from the IRA will never be subject to any early-distribution penalties. However, amounts you receive will be treated as ordinary income (for you) and may be subject to ...
  44. Can IRAs be held jointly by spouses?

    An individual retirement account (IRA) must be established and maintained on an individual basis. It cannot be held jointly. However, the IRA owner may designate his or her spouse (or any other party) as the beneficiary of the IRA. In some states, the spouse must provide written consent if the IRA owner ...
  45. What is estate planning?

    Estate planning involves making plans for the transfer of your estate after death. Your estate is all the property that you own. It can include cash, clothes, jewelry, cars, houses, land, retirement, investment and savings accounts, etc. Estate planning usually has several objectives and goals.
  46. Analyzing IRA And ESA Statements

    Learn how to read and verify 5498 and 5498-ESA reporting your retirement-account contributions.
  47. Can I close my existing Roth IRA and invest in a new Roth IRA at a different financial ...

    If If you withdraw your Roth IRA contribution, the amount will be tax and penalty free. If your initial contribution accrued earnings while in the Roth IRA and you also withdraw the earnings, the earnings will be subject to income tax. Furthermore, if you are under age 59.5, the withdrawal will be subject ...
  48. Can an individual contribute to both a Roth IRA and a Traditional IRA in the same ...

    Yes. An individual may make IRA contributions to both a Roth and a Traditional IRA, providing the combined contribution total does not exceed the contribution limit for the year. For instance, for tax year 2007, an individual may make a total contribution - whether to one IRA or partially to a Traditional ...
  49. Once substantially equal periodic payments (SEPP) of an IRA have started, is the ...

    Typically, if you withdraw assets from an IRA or a qualified retirement plan sponsored by your employer while under the age of 59.5, you may owe ordinary income tax on these amounts, plus an additional 10% early-withdrawal penalty. However, you can avoid the early-withdrawal penalty by taking assets ...
  50. I am only 17 years old. I don't have a job or pay taxes. Can I contribute to an IRA? ...

    You must have earned income (eligible compensation) to be eligible to contribute to a Roth IRA. Individuals who are eligible to establish an IRA, but are under the age of majority as determined by their state of residence, may need to have a parent or legal guardian complete and sign all related documents.
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