In order to contribute for that tax year, plans must be established by the business’s tax-filing deadline (usually April 15, plus extensions). The deadline for annual contributions is also this date. Does a SEP have to be set up before year end? If you wish to set up a retirement plan for your company, a […]
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When does an IRA have to be fully dispersed if no beneficiary is named? Unless the owner selected a beneficiary, if the owner dies before distributions begin, the entire interest must be dispersed in full on or before December 31 of the calendar year that contains the fifth anniversary of the owner’s death. When must
When Must An IRA Be Completely Distributed? Read More »
You have various alternatives if you inherit a Traditional, Rollover, SEP, or SIMPLE IRA from a spouse, depending on whether your spouse was under or beyond the age of 72. Those who inherit an IRA from a spouse are most likely to transfer the cash to their own IRA. Option #1: Spousal transfer (treat as
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On December 20, 2019, the SECURE Act (Setting Every Community Up for Retirement Enhancement) became law. The RMD requirements were significantly altered by the Secure Act. If you turned 701/2 in 2019, the previous rule applies, and your first RMD must be taken by April 1, 2020. If you turn 70 1/2 in 2020 or
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There is no age limit on making regular contributions to standard or Roth IRAs after 2020. If you’re 70 1/2 or older in 2019, you won’t be able to contribute to a traditional IRA on a regular basis in 2019. Regardless of your age, you can contribute to a Roth IRA and make rollover contributions
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On December 20, 2019, the SECURE Act (Setting Every Community Up for Retirement Enhancement) became law. The RMD requirements were significantly altered by the Secure Act. If you turned 701/2 in 2019, the previous rule applies, and your first RMD must be taken by April 1, 2020. If you turn 70 1/2 in 2020 or
When Must You Start Withdrawing From Your IRA? Read More »
If you expect to have a better income in retirement than you do today, a Roth IRA or 401(k) is the best option. A regular IRA or 401(k) is likely the better bet if you expect your income (and tax rate) to be lower in retirement than it is now. A typical IRA permits you
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You won’t have to pay the 10% early withdrawal penalty on your IRA if you wait until you’re above the age of 59 1/2. The money you withdraw from a traditional IRA is taxed if you deducted your contributions. If you made nondeductible donations, however, you will be able to take a portion of your
When Is IRA Early Withdrawal Penalty Due? Read More »
If you expect to have a better income in retirement than you do today, a Roth IRA or 401(k) is the best option. A regular IRA or 401(k) is likely the better bet if you expect your income (and tax rate) to be lower in retirement than it is now. A typical IRA permits you
When Should I Start An IRA? Read More »
If your income falls within the restrictions, you may be able to deduct your contributions to a traditional IRA. When can you make a deductible IRA contribution? If your income is below the year’s upper limits and you don’t have any other retirement accounts, you can contribute the maximum amount, which will be entirely deductible.
When Is My IRA Contribution Tax Deductible? Read More »
