FAQs tagged as

Retirement Saving Plan

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

  2. What procedure applies to a taxpayer who made excess contributions for 2001, 2002, 2003 and 2004 and has neither withdrawn the excess and the earnings for 2001-2003, nor recharacterized 2004 to a Traditional IRA? How are multiple years such as this to be

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

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

  5. 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?

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

  7. Can I convert non-deductible contributions made to my Traditional IRA to a Roth IRA without being taxed?

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

  9. How do I go about opening up a Roth IRA?

  10. I am over 60 years old and have a Roth IRA to which I have made contributions for more than five years. Are all distributions tax free?

  11. 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?

  12. 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?

  13. How do my siblings and I receive inherited pension benefit payments from our deceased parent?

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

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

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

  17. I have two jobs. Can I contribute to two SIMPLE IRA plans?

  18. What's the best kind of IRA for a 20-something?

  19. 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?

  20. I work for a university, and I have a 403(b) with TIAA-CREF. But TIAA-CREF says I cannot transfer money to another provider. Can they prevent me from transferring my money to a better investment?

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

  22. My 80-year-old mother used her Roth IRA assets to make an $11,000 annual gift tax exclusion. Will these still be considered Roth IRA assets?

  23. 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?

  24. I'm an 80 year old making increasing required minimum distribution (RMD) tax payments. I plan to convert my IRA to a Roth IRA and pay the taxes for the total RMD. Will I be able to withdraw funds from the Roth the year following the conversion? I understa

  25. 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

  26. If a trust is named as the beneficiary of an IRA, can the trustee of that trust become the beneficiary without the IRA owner signing the Change of Beneficiary form?

  27. Can an IRA owner disclaim his widow's account but exclude one spendthrift contingent beneficiary?

  28. How can I reduce the taxes on my inherited retirement assets?

  29. I have a small business (LLC), which I operate part-time. I also work full time for a company and am enrolled in a 401(k) plan. Am I still eligible to make contributions to an individual 401(k) from earnings of my part-time LLC?

  30. 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?

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

  32. Can an IRA be used as security for a loan?

  33. My recently deceased spouse's IRA has been rolled over into mine. Does the cost basis change for me?

  34. 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

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

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

  37. 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?

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

  39. How do I get credit for my retirement plan contributions?

  40. Can a creditor seize my retirement savings?

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

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

  43. I do not want to totally get out of my retirement 401(k), but I want to take 72(t) distributions. What should I consider?

  44. Can I move my IRA to a better income-producing opportunity?

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

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

  47. My mother inherited my father's IRA. When she died, I received an account application listing me as the beneficiary, as well as notice that my brother and I will have to take my mom's required distribution. My brother is nowhere to be found. How should I

  48. 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?

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

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

  51. I'm 70.5 and still working for my own company. Can I defer starting my required minimum distributions?

  52. After receiving a required distribution when and how are my taxes affected?

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

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

  55. Can I pull out most of my assets from my IRA and use the cash as long as I replace it in the IRA within a year?

  56. I am a teacher in a public school system and I don't presently have a 403(b) plan, but I do have some money in a Roth IRA and also a self-directed IRA. Can I roll my IRA funds into a newly opened 403(b) plan, since I am presently employed by the school sy

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

  58. What is the difference between a Traditional and a Roth IRA?

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

  60. I own a small business. Can the SBO-401(k) work for me?

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

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

  63. I failed to distribute an inherited 401(k) that was found in an audit. What happens now?

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

  65. If I pass away, will my retirement plan go to my spouse tax free?

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

  67. What do you do for a non-spouse beneficiary receiving a required minimum distribution (RMD) when the plan terminates? Is the purchase of an annuity the only option? Any thoughts on whether an IRA could be opened?

  68. Upon my death, will the beneficiaries of my IRA be compelled to take the entire amount in the IRA as ordinary income, forcing them into unusually high income tax brackets?

  69. If an IRA owner dies after starting required minimum distributions (RMD) but the spouse is under 70.5, can the spouse roll over the IRA into his/her own IRA, and stop RMDs until age 70.5?

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

  71. 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?

  72. What does the Pension Protection Act of 2006 say about charitable contributions?

  73. Are my IRAs secure against possible liens?

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

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

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

  77. My company is the trustee of our 401k plan (which has 112 participants). What are the pros and cons of having the company instead of the plan provider/vendor as the trustee?

  78. Can an individual contribute to both a Roth IRA and a Traditional IRA in the same year?

  79. Can I borrow from an IRA without penalty?

  80. I am the beneficiary of an IRA and a Keogh. Can I combine them into one plan?

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

  82. 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?

  83. 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?

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

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

  86. How long does an IRA beneficiary have to take an RMD after the IRA holder dies?

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

  88. What are the income limits for Roth IRA contributions?

  89. I converted my former IRA to a Roth for tax purposes in 1998, so even though the tax was paid over four years, am I correct to assume that this is now mine to withdraw, if I like, at no penalty? I am 60 years old.

  90. If an individual still has his or her former spouse as the beneficiary of an IRA, does the former spouse receive the assets upon the individual's death?

  91. My wife and I both converted our Traditional IRAs to Roth IRAs in Dec 1998 and have invested the maximum amount each year to date in the Roth. I am purchasing a new home in January. Do my wife and I each qualify for a one-time, tax-free $10,000 "qualified

  92. 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?

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

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

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

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

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

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

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

  100. I am in my mid thirties and have nothing invested for retirement. Is it too late to start contributing for a retirement plan?

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