Retirement

  1. Must-Know Rules For Converting A 401(k) To A Roth

    In 2008, the IRS spelled out the details for converting employer-plan funds directly to Roth IRAs.
  2. Thrift Savings Plan Helps Federal Workers Retire

    The TSP is key component of retirement savings for U.S. government workers and members of uniformed services.
  3. I am in my mid thirties and have nothing invested for retirement. Is it too late ...

    It is never too late to start saving for retirement. Even starting at age 35 means you will have more than 30 years to save.The type of IRA you choose is usually determined by your individual circumstances and preferences. A Roth IRA is usually preferred by individuals who do not qualify for tax deductions ...
  4. I'm having trouble getting my former employer to distribute my 401(k) plan balance ...

    Your employer or the plan administrator for the 401(k) plan should have provided you with a copy of the 401(k) plan's summary plan description (SPD). If you can't find your copy, contact your employer and ask for a replacement copy. A copy of the plan's SPD may also be obtained from the Department of ...
  5. I am rolling my 401(k) into an IRA. After a year, can I convert this amount to a ...

    There is no provision in the tax law that would allow anyone to convert taxable funds and treat it as a tax-free transaction, regardless of how long the assets have been rolled to the Traditional IRA. Of course, conversions of nontaxable amounts are not taxable.
  6. Build A Wall Around Your Assets

    Learn how to protect your money from lawsuits, creditors and other judgment proceedings.
  7. My 80-year-old mother used her Roth IRA assets to make an $11,000 annual gift tax ...

    Under the current version of the law, any IRA or Roth IRA assets that are gifted while the IRA owner is alive are considered to be a distribution from the IRA to the IRA owner. This means the assets will no longer be considered IRA assets after they leave the IRA.Some IRA owners choose to designate the ...
  8. Did Your Roth IRA Conversion Pass or Fail?

    If you are moving assets from a Traditional IRA to a Roth IRA, you need to know the associated tax rules.
  9. Can I establish more than one IRA?

    There is no limit on the number of IRAs that you can establish. However, regardless of the number of IRAs you maintain, you still cannot contribute more than the annual contribution limits: $4,000 for 2007 $5,000 for year 2008 and beyondIf you are at least age 50, you are allowed to contribute additional ...
  10. Can a simplified employee pension (SEP) IRA be converted to a Roth IRA in the same ...

    Yes. An SEP IRA can be converted to a Roth IRA.As you may know, an SEP IRA is just a Traditional IRA that receives employer SEP contributions. Once the SEP contributions are made to the account, they immediately assume the identity of regular Traditional IRA assets and are subject to the same set of ...
  11. What is the difference between a Traditional and a Roth IRA?

    The main difference between a Traditional and a Roth IRA is the way contributions are deducted for tax breaks. Whereas contributions to Traditional IRAs are either deductible or non-deductible, Roth IRA contributions are always non-deductible. As a result, Roth IRAs offer tax-sheltered growth, whereas ...
  12. I stopped distributions from my retirement account while under Rule 72(t). Will this ...

    If an individual modifies a substantially equal periodic payment (SEPP), including discontinuing the SEPP before the end of the applicable SEPP period or increasing or decreasing the required amount in a manner that is not allowed under the regulations, all of the 10% penalty (additional tax) waived ...
  13. What will happen to my SEP IRA if I leave my current employer?

    Because the funding vehicle for the SEP is a Traditional IRA, the same transfer and rollover rules that apply to a Traditional IRA also applies to an SEP IRA. The SEP is treated as a Traditional IRA, except that it is allowed to accept employer contributions.
  14. Can I roll the funds in an SEP-IRA over to a profit-sharing plan or self-directed ...

    Yes. Funds can be rolled over from an SEP IRA to a profit-sharing plan, provided the plan document that governs the profit-sharing plan is designed to allow such rollovers. If the plan document includes provisions to permit rollovers from SEP IRAs, the plan sponsor (employer) usually makes the election ...
  15. When should I take my Canadian Pension Plan distributions?

    The Canadian Pension Plan (CPP) is a retirement program from which contributing Canadians may receive payments at the age of 60 or upon a disability. The program, however, does not start immediately paying you upon retirement, disability or at the age of 60 because you must apply for payments.
  16. Downshift To Simplify Your Life

    Learn how to ditch the rat race with voluntary simple living.
  17. Can high-income earners deduct yearly defined-benefit plan contributions of over ...

    At a very high income level (say from $300,000 plus per year), you may be able to contribute and deduct the $100,000 contribution each year, or possibly more. However, as you may already know, defined-benefit plans involve complex calculations and usually require the assistance of a competent plan administrator ...
  18. Plans The Small-Business Owner Can Establish

    Don't hesitate to adopt a smart plan for you and your employees.
  19. ETN Credit Risk May Outweigh Benefits For Some

    Exchange-traded notes have many benefits, but they may not be suited to risk-averse investors.
  20. I am 52 years old and wish to make a withdrawal from my 401(k) plan. Is there any ...

    Most distributions from qualified retirement plans made to you before you reach the age of 59.5 are subject to an additional tax of 10%. The IRS may waive this tax under certain circumstances; however, there is no broad definition of "hardship" for the purposes of exemption from the 10% penalty.
  21. Do I need to hit my 401(k) contribution limit before I can begin making catch-up ...

    You generally need to reach the limit established by the plan in order to make catch-up contributions; therefore, if the plan limit is $15,500, you will be able to make catch-up contributions only after you have reached that limit, assuming you will be at least 50 years old by year-end.
  22. 3 Deadlines For Retirement Plan Beneficiaries

    To take full advantage of new RMD regulations, beneficiaries need to take action before important deadlines.
  23. My recently deceased spouse's IRA has been rolled over into mine. Does the cost basis ...

    The basis attributed to IRA assets that you inherited remains the same. Since you are a spouse beneficiary and you elect to treat the assets as your own by transferring them to your own IRA, the basis is now treated as if you made the non-deductible contribution.
  24. Where can I find information on how to distribute my deceased parent's assets?

    Related information can be found in IRS publication 590. See page 32 (bottom right hand corner) and page 35. If the trust is qualified, as described on page 35, distributions may occur over the life expectancy of the oldest beneficiary under the trust.If the trust is not qualified, then the following ...
  25. Can either a SEP IRA or a SIMPLE IRA be attached in a bankruptcy or malpractice action, ...

    State law determines whether or not an IRA, including SEP, SIMPLEs and Roth IRAs, can be attached in any bankruptcy proceedings, judgment or garnishment. The law varies among states and is subject to change at anytime. The following are a few examples:New York: The New York Statute protects Traditional, ...
  26. I have several Roth IRA conversions, each with different custodians. When I spoke ...

    It is true that at any time you may take out (distribute) the amount you converted without paying tax on the amount because you already did when the amount was converted. However, if you are under age 59 ½ and it has been less than five years since the conversion occurred, the amount will be subject ...
  27. I am making after-tax contributions to an IRA. Will I get taxed again when I withdraw ...

    No. Withdrawals of your after-tax contributions to your IRAs should not be taxed. However, the only way to make sure this does not happen is to file IRS Form 8606. Form 8606 must be filed for every year you make after-tax (non-deductible) contributions to your Traditional IRA and for every subsequent ...
  28. What are the rules and reporting requirements for a rollover of a required minimum ...

    An RMD may be transferred between IRAs, but it may not be rolled over once distributed. If the RMD amount is rolled over to an IRA, it will be treated as an ineligible rollover contribution and will therefore be subject to a 6% excise penalty for each year it remains in the IRA.
  29. Do I have to continue SEPPs for an inherited IRA?

    You may discontinue the payments. Once the person who is taking the substantially equal periodic payment (SEPP) dies or becomes disabled, the SEPP can be discontinued. For this purpose, disability must satisfy the definition under Internal Revenue Code § 72(m)(7).To learn more, read Rules Regarding ...
  30. My spouse has little/no income. Can I contribute to my spouse's IRA?

    Yes. You may make a Traditional IRA contribution to your spouse's Traditional IRA because you have eligible compensation.There is no income limit for contributing to a Traditional IRA. However, although your income does not prevent you from making a Traditional IRA contribution, it may make you ineligible ...
  31. Money Can't Buy Retirement Bliss

    Emotional snags can ruin your future happiness. Learn how you can avoid them.
  32. Where can I find information on multiple annual additions for someone employed by ...

    That information can be found in Internal Revenue Code Section 402(g). Also see IRS Publication 571.If an individual participates in multiple retirement plans, the aggregate salary deferral among those plans for the individual cannot exceed $15,000 for 2006, plus catch-up contribution of $5,000.
  33. Health-y Savings Accounts

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

    High-cost, outdated plans can prevent your retirement portfolio from thriving.
  35. 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.
  36. 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, ...
  37. 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 ...
  38. New Option For Beneficiaries: Reversionary Annuities

    This vehicle can provide survivors with guaranteed income and lower premiums.
  39. What do you do for a non-spouse beneficiary receiving a required minimum distribution ...

    Unfortunately, a non-spouse beneficiary is not allowed to rollover assets from a qualified plan. Therefore, purchasing an annuity appears to be the only option for a beneficiary who wants to stretch out payments over an extended period, while preserving the tax-deferred status of the assets.
  40. 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.
  41. 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.
  42. 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.
  43. 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, ...
  44. 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 ...
  45. 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.
  46. 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 ...
  47. 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.
  48. Who qualifies as "single" for tax or retirement purposes when spouses do not live ...

    For the purposes of taking a deduction for an IRA contribution, the IRS provides special allowances for individuals who are married, file separate returns and lived apart for the entire year by treating these individuals as "single" filers. 1. If you and your spouse did not live together at any time ...
  49. Journey Through The 6 Stages Of Retirement

    Financial planning is important, but emotional planning is the key to retiree bliss.
  50. Personal Pensions: Repackaging The Annuity

    Discover an investment that can provide a stable income once you've left the work force.
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