FAQs tagged as

Life Stage - Retirement

  1. What should you do when you're five years from retiring?

  2. What are the differences between a 401K and an IRA?

  3. How do I retire?

  4. What are Government Pension Offsets, and who is subject to them?

  5. How do you plan for retirement if you have multiple employers? Can you combine retirement plans from multiple employers?

  6. My daughter would like to use some of her Roth IRA to pay for some current tuition fees and loans. Can she do this without a penalty?

  7. I have a 403(b) from a old employer. I would like to convert it to a 401(k). How can I do that?

  8. Which investment would be most suitable for a client investing for retirement and seeking protection from purchasing power risk in the future?

  9. How do 401(k) loans work?

  10. A lot of retirement projections seem to assume an 8% rate of return. Is this realistic?

  11. Should a Canadian citizen who lives and works in the U.S. continue to contribute to a RRSP account?

  12. I overcontributed to my Roth, then lost half of this money to the market. Does the 6% penalty apply to my original contribution, or only what's left of it?

  13. How do I use a conduit IRA?

  14. We are in a 401(k) at work. Can we also do a Roth each year? If we can, can it also be deducted from our taxes?

  15. Is a person an active participant in an employer-sponsored retirement plan if he or she was only active for a short time?

  16. What are the penalties for withdrawing from my Traditional IRA less than a year after acquisition?

  17. Am I entitled to any of my ex-spouse's retirement plan benefits?

  18. What happens when someone is given the golden boot?

  19. I'm about to retire. If I pay off my mortgage with after-tax money I have saved, I can save 6.5%. Should I do this?

  20. I am 59 (not 59.5) and my husband is 65. We have participated in a SIMPLE IRA with our company for more than two years. Can we convert the SIMPLE IRA to a Roth IRA? If we can convert, do we have to pay tax on the SIMPLE IRA money placed in the Roth? Are t

  21. I am retiree, drawing from my 403(b) annuity. I am the sole employee of my own business. Do I qualify for a SIMPLE IRA account? I want to defer some of my income from taxes.

  22. Should I put money into a retirement account even if it isn't tax deductible?

  23. Can I roll my 403(b) and 457 into other low-cost venders when I change jobs?

  24. Can I still set up an SEP if one of my employees refuses to participate?

  25. Can I leave my pension to my spouse when I pass away?

  26. Can I roll over a profit-sharing plan to an SEP IRA account without suffering any tax penalties and liquidation of current positions held in this account?

  27. Are there tax penalties for closing my Roth IRA account?

  28. I have a small business, and I'm considering setting up an SEP IRA. What are leased employees? Does this term refer to outside contractors who receive 1099-Rs? If so, how would the 5305-SEP need to be worded to make it acceptable to the IRS?

  29. What are the rules and reporting requirements for a rollover of a required minimum distribution (RMD)?

  30. Will I incur a tax penalty when making withdrawls from my IRA in excess of my SEPP?

  31. Is my non-qualified Roth IRA distribution subject to taxes or early distribution penalties?

  32. I want to close my IRA account. What percentage will I lose to tax?

  33. What are the "certain requirements" that must be met for substantially equal periodic payments (SEPPs)? Is it taxed at 20%? Is there any downside to the SEPP?

  34. I made involuntary contributions to a retirement plan while temporarily employed. Can I withdraw these funds without penalty?

  35. Earnings within a Roth IRA are tax free, so are these earnings included in the modified adjusted gross income which is used to determine Roth IRA eligibility?

  36. I want to purchase a five-year period certain single premium immediate annuity (SPIA) with my IRA account. I'm 53. Will the 10% penalty apply?

  37. What's the difference between a savings account and a Roth IRA?

  38. Can I return funds to my Roth IRA after I have taken it as a distribution?

  39. I have several CDs in my IRA with different maturities. Can I roll them over to another institution with a better rate as they mature?

  40. Is it possible to reverse an IRA? I received a QDRO and owe money to my ex-husband. Is it possible to reverse the QDRO, which was put into a CD Traditional IRA account, without incurring any type of penalty?

  41. The company I am working for said that 401(k) contribution can be based on only straight time pay! The company I previously worked for allowed me to contribute on gross earnings. Has the law changed, or is the current employer wrong?

  42. If I participate in my company’s SIMPLE IRA plan, can I also contribute to another IRA in order to receive a larger tax deduction?

  43. What is the best retirement plan option for a physician with her own practice, employees and a desire to fund her retirement without making things complicated? She'd like to avoid plans that rely on a stringent income test or require all employees to part

  44. I have several jobs. Can I contribute the maximum to multiple employer retirement plans?

  45. I have just been laid off. Can I use my 401(k) for living expenses now and report it as income next year?

  46. What are the exceptions to the early distribution penalty for a non-qualified Roth IRA distribution?

  47. Why should investors pick less risky investments as they approach retirement?

  48. I'm a teacher. Which is better for me, a 401(k) or 403(b)? What is the difference? From whom do I get these plans?

  49. I have conservative views on investing. How should I go about investing in a Roth IRA?

  50. My certificate of deposit (CD) has just matured and I plan to contribute $10,000 of it to my current Roth IRA account. The person doing my taxes can't tell me why I can't make such a large contribution except for my low income - I am a disabled veteran on

  51. I participate in a profit-sharing plan at work. If I retire at age 62, will I be able to withdraw the money tax-free, or must it be rolled over to another account or plan?

  52. Is an employee eligible for an SEP if the plan has already been set up for other employees?

  53. If a company undergoes an acquisition can an employee withdraw 401(k) funds tax free?

  54. I have two Roth IRAs, one of which has a balance that is much less than the total contributions I have made to the account. Can I write off the losses for that account?

  55. What is the difference between a ROTH, SEP and Traditional IRA?

  56. What kinds of investments are allowed in a qualified retirement plan, and what kinds are forbidden?

  57. Does participation in a 401(k) plan prevent an individual from contributing to a Traditional IRA?

  58. My husband has become eligible for a 401(k) plan (with no matching contribution) at work. How do we get back the $9,000 that we already contributed to our IRA for 2005 without a penalty? My husband earns $144,000/year and we're both over 50 years old.

  59. Can an employer adopt a different type of retirement plan for each employee?

  60. I am in the second year of taking SEPP distributions from my IRA. Can I transfer some of the funds to a new IRA with different investment options?

  61. Can I contribute to my company-sponsored 401(k) after the company's year-end but before its tax-filing date?

  62. Are any special forms or documents required when transferring an IRA/SEP/SIMPLE to a Traditional IRA?

  63. What is the difference between a Keogh and an IRA?

  64. Can you have a 403(b) and also contribute to a 401(k)?

  65. I converted a Traditional IRA to a Roth. The conversion was a stock equity with a cost basis of $19,000 in the Traditional IRA. The day of conversion, the value was $34,000. Which amount should the brokerage house use for the 1099-R?

  66. Is it easier to save for retirement if you start earlier in life? Can I make up for what I don't save now by contributing more later on?

  67. My company has three partners but plans to hire more this year. Would we be better off with an SBO-401(k) or a SIMPLE IRA?

  68. Can my spouse and I combine our Traditional IRAs?

  69. Can I contribute to both a 401(k) and an IRA?

  70. Who qualifies as "single" for tax or retirement purposes when spouses do not live together?

  71. Is my 403(b) account owned by me or by the institution?

  72. I make over $100,000/yr and my adjusted gross income precludes standard IRA contributions. My contributions to my 401(k) plan at work are limited to about $7,000/yr. It seems I'm being penalized for my income. Are there other retirement savings options av

  73. I didn't record my Traditional IRA contributions. Is there a website that lists IRA contribution limits for past years?

  74. Are the deferred earnings in a SIMPLE IRA subject to FICA taxes?

  75. What will happen to my SEP IRA if I leave my current employer?

  76. Can I hold non-dollar currencies in my retirement fund?

  77. I'm worried about the economy and want to move my IRA funds from stocks and bonds to cash. Will I taxed for this?

  78. Are the distribution rules for 401(k) and 403(b) plans the same as those for IRA plans?

  79. What are some common and useful retirement planner designations? Are they expensive or difficult to obtain?

  80. What is the five-year waiting rule for Roth IRAs?

  81. I just learned that my 2004 and 2005 Roth IRA contributions are not allowed because my income exceeds the limits. Can I just withdraw the contributions plus earnings without penalty?

  82. Do I have to continue SEPPs for an inherited IRA?

  83. Is there a limit on how much I can move from my IRA to my Roth IRA?

  84. I am self-employed and do not need most of my IRA RMD for expenses. Can I reinvest it in Roth IRAs?

  85. Can I close my existing Roth IRA and invest in a new Roth IRA at a different financial institution without a tax penalty?

  86. If I am entitled according to my divorce decree to a percentage of my ex-husband's IRA, how can I receive the assets due to me into my own IRA without being taxed? Will he be taxed when he makes the transfer? Will the money he may have to pay in taxes the

  87. Is divorce an exception to the SIMPLE IRA's two-year waiting period rule?

  88. I am starting a limited liability company (LLC). I will be the sole member. Can I open an SEP IRA? How much tax-deferred money would I be able to contribute each year?

  89. I am 61 years old and would like to contribute to my employer's 401(k) plan. Is there an age limit?

  90. Can my spouse and I use our IRAs to purchase our first home?

  91. I want to roll over a portion of my retirement plan with my employer and I have been advised to ask for separate checks to account for pre- and after-tax amounts. What does this mean?

  92. Can I return funds to my Traditional IRA after taking a distribution?

  93. Can my spouse and I convert our IRAs to Roth IRAs regardless of earned income?

  94. Once substantially equal periodic payments (SEPP) of an IRA have started, is the payment fixed each year, or does it fluctuate with interest rates? Can payments be monthly?

  95. What are the tax consequences of a Roth IRA distribution if the IRA holder is younger than 59.5?

  96. I have some stocks in a taxable account. Can I use them to fund my Roth IRA instead of using cash?

  97. I am rolling my 401(k) into an IRA. After a year, can I convert this amount to a Roth IRA tax free?

  98. If there are two plans and one is terminated, creating a distributable event, can loans in the terminated plan be rolled over?

  99. I work for two companies. How much can I contribute to each company's SIMPLE IRA?

  100. Can I establish more than one IRA?

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