bobrichards
Creditors and Bankruptcy and Your IRA
When you hold retirement money in a qualified plan, those assets are protected by the Employee Retirement Income Security Act (ERISA). This is a federal law so no matter in which of the 50...
Basic Retirement Account Rules Under Bunkruptcy
Under the new rules of BAPCPA, virtually all types of retirement accounts are now exempt assets in bankruptcy proceedings. This was accomplished by adding a provision creating a new exemption for “retirement funds" to...
Ask Your IRA Custodian These Questions
□ Will the custodian or plan administrator require that a designation of a beneficiary or beneficiaries be done on their own forms, or will they accept as valid a detailed, customized beneficiary designation created...
Taking Distributions Early
Based on what we just covered about wanting to defer distributions to defer taxes, why would anyone in their right mind take distributions early? It can actually save taxes in certain situations.
Example
Bill and Linda...
Roth Distributions
We talked about Roth conversions earlier. Now let’s look at how you get the money out of a Roth. You first want to do some careful planning here. These funds are really special as...
Pre-59 1/2 Distributions
You may be among those that retire early and want to use your retirement funds. The problem is, though you’ll have to pay the 10% early withdrawal penalty.
Fortunately, there is a way around this....
Mandatory Distributions
IRS imposes some stiff penalties if you miss your required minimum distributions.
If you are the owner of a traditional IRA, you must start receiving distributions from your IRA by April 1 of the year...
Apply Rule 72t
There are three ways to calculate 72(t) distributions.
The Minimum Distribution Method is calculated the same way as required minimum distributions when account owners reach their required beginning distribution date. This method will generally produce...
Account Aggregation
In order to determine your balance as of December 31 of the previous year, you aggregate accounts of the same type:
IRAs, SEP-IRAs, and SIMPLE IRAs get aggregated.
Note that inherited IRAs do not get included...
What About After-Tax Contributions
Most contributions are pre-tax. Your can contribute right up to the plan’s limit, deducting all that money from your income before you pay taxes. Pre-tax, or deductible contributions, can generally be rolled over, following...