IRA Blog
HOW THE TOP-HEAVY RULES FOR 401(K) PLANS WORK
By Ian Berger, JD IRA Analyst Just like eating too much pumpkin pie with whipped cream isn’t good for your waistline, being a “top-heavy” retirement plan also may not be healthy. Sponsors of certain retirement savings plans must have their plan tested each year to...
THANKSGIVING PARADE
By Andy Ives, CFP®, AIF® IRA Analyst The Macy’s Thanksgiving Day Parade is a river of sights and colors and sound. A snappy marching band flows to an army of volunteers clutching the ropes of a six-story inflatable SpongeBob, swaying in the wind. Flag bearers and...
ACTIVE PARTICIPATION
By Andy Ives, CFP®, AIF® IRA Analyst Jenny earns a salary of $1,000,000. She is single and is not an active participant in a company retirement plan. Jenny can contribute $6,000 to a traditional IRA and deduct the full amount on her taxes. Benny, also unmarried, has a...
WHY YOU SHOULD NOT CARE ABOUT THE ROTH IRA FIVE-YEAR RULES
By Sarah Brenner, JD IRA Analyst Roth IRAs first arrived over twenty years ago. A lot has changed since 1998. That was the year that Google was founded and an electronic pet called a Furby was one of the most popular Christmas gifts. However, some things haven’t...
AGGREGATING IRAS AND RMD CALCULATIONS: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Question: I am over 71 and have 2 IRAs, one in my name, the other is inherited. Can I take one RMD from the inherited IRA to satisfy both? Or must I treat them separately and do 2 separate RMDs? Thank you! Tyler Answer: Hi Tyler, You must...
TEN QCD RULES FOR 2019 YOU NEED TO KNOW
By Sarah Brenner, JD IRA Analyst If you are charitably inclined and have an IRA, you might want to consider doing a Qualified Charitable Distribution (QCD) for 2019. The deadline for a 2019 QCD is fast approaching. It is December 31, 2019 and many custodians have even...
QCDS AT THE STATE LEVEL
By Andy Ives, CFP®, AIF® IRA Analyst Earlier this month, a tax notification service released information declaring that “North Carolina Governor Roy Cooper signed legislation allowing an income exclusion for distributions from individual retirement accounts (IRAs) to...
ROTH CONVERSIONS AND THE 60-DAY ROLLOVER RULE: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD IRA Analyst Question: Hello Ed, I have received differing views on making a 401(k) conversion to a Roth IRA. I'm a 64 year old retired federal employee and plan to transfer all my funds from the TSP to my traditional IRA. From there I plan to...
HOW THE 401(K) NONDISCRIMINATION RULES WORK – PART 2
By Ian Berger, JD IRA Analyst Many 401(k) plans must pass two annual nondiscrimination tests: the ADP test and the ACP test. The November 11 Slott Report discusses the ADP test. This Slott Report tackles the ACP test and the options available to 401(k) plans that fail...
By Ian Berger, JD IRA Analyst If you participate in a 401(k) plan, you probably know about the annual limit on the amount of your deferrals (for 2019, $19,000, or $25,000 if over age 50). But if you are a high-paid employee, another limit may apply. Welcome to the IRS...