FAQs tagged as

Life Stage - Retirement

  1. I am a first-time home buyer. If I take a distribution from my 401(k) to purchase land and a house, will I have to pay a penalty on this distribution? Also, what kind of form will I need to file with my taxes, showing the IRS that $10,000 went toward a ho

  2. 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?

  3. 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?

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

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

  6. My spouse has little/no income. Can I contribute to my spouse's IRA?

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

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

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

  10. 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?

  11. 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?

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

  13. 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?

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

  15. 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?

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

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

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

  19. 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?

  20. Are my IRAs secure against possible liens?

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

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

  23. How do I retire?

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

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

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

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

  28. How do 401(k) loans work?

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

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

  31. How do I use a conduit IRA?

  32. 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?

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

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

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

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

  37. I overcontributed to my 401(k). What are my options?

  38. Can a person who is retired continue to fund an IRA?

  39. Can investment real estate be purchased within an IRA and, if so, are there any pitfalls?

  40. I am only 17 years old. I don't have a job or pay taxes. Can I contribute to an IRA?

  41. Who bears the investment risk in 401(k) plans?

  42. Do I need to hit my 401(k) contribution limit before I can begin making catch-up contributions?

  43. Can a creditor seize my retirement savings?

  44. What are some of the features and benefits of SEP IRAs and Roth IRAs?

  45. I am making after-tax contributions to an IRA. Will I get taxed again when I withdraw it (when eligible)?

  46. Can I add my higher income spouse's name to my Roth IRA in order to raise our contribution limits?

  47. Can I have a self-directed IRA or Roth IRA using the forex market?

  48. I didn't earn any income this year. Can I still contribute to a Roth?

  49. Can I roll the funds in an SEP-IRA over to a profit-sharing plan or self-directed retirement vehicle?

  50. Is it permissible for a 70-year-old person to buy an IRA?

  51. I am 52 years old and wish to make a withdrawal from my 401(k) plan. Is there any way I can avoid having to pay additional tax on the grounds of hardship - e.g. unemployment?

  52. Can I roll over my IRA assets to a sheltered Canadian plan?

  53. My spouse and I now earn more than the dual-income limit specified by our IRAs. What will happen to our previous contributions?

  54. I deducted my IRA contribution on my tax return but failed to transfer the funds. What do I do?

  55. Should I start taking my RMD based on the amount in my account when I turn 70.5?

  56. If I am no longer employed, can I roll over a 403(b) plan into an IRA?

  57. I plan to retire in March 2005 at the age of 59.75. When and what percentage or dollar amount can I start withdrawing from my SIMPLE IRA account?

  58. Can I fund a Traditional IRA, a 403(b) or a Roth IRA using pension money? I'm 56 years old. What limits apply if I can?

  59. I stopped distributions from my retirement account while under Rule 72(t). Will this have any effect on future distributions that I do take? Am I subject to the 10% penalty?

  60. If I roll my annuity into an IRA and receive after-tax distributions, will this be considered taxable income?

  61. Can I roll my SEP IRA into a Traditional IRA or should I convert to a Roth?

  62. 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?

  63. 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

  64. 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.

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

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

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

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

  69. 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?

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

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

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

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

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

  75. 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?

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

  77. 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?

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

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

  80. 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?

  81. 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?

  82. 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?

  83. 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

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

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

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

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

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

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

  90. 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

  91. 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?

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

  93. 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?

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

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

  96. 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.

  97. 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?

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

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

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

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