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

July 7, 2024 No Comments

A: Distributions of after-tax amounts (amounts already taxed) will not be taxable when distributed to you. However, you will be required to report the amount on your tax return as a non-taxable distribution. The plan should send you a Form 1099-R, which is used to

How to Calculate Early Withdrawal Penalties on an IRA or Roth IRA

July 7, 2024 No Comments

A: With a few exceptions, early distributions from IRAs (that is, those made before age 59½) generally incur a tax penalty equal to 10% of the sum withdrawn. To calculate the penalty on an early withdrawal, simply multiply the taxable distribution amount by 10%. An

Inter Vivos Trust vs Testamentary Trust: What is the difference?

July 7, 2024 No Comments

A: Estate planning offers tools to establish and maintain effective control over cash, investment and real estate assets during a person’s lifetime and upon death. While wills and beneficiary designations work well to ensure an estate plan meets the unique needs of the individual establishing the

How to withdraw money from your 401(k)

July 7, 2024 No Comments

A: The method and process of withdrawing money from your 401(k) plan will depend on your employer and the type of withdrawal you choose. Withdrawing money early from your 401(k) can carry serious financial penalties, so the decision should not be made lightly; it’s really

Is a 401(k) a qualified retirement plan?

July 7, 2024 No Comments

A: A 401(k) is a qualified retirement plan. Qualified retirement plans must satisfy IRS requirements for both setup and operations. They fall into two categories: defined contribution and defined benefit. In a defined benefit plan, the employer has committed to providing the employee with a

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

July 7, 2024 No Comments

A: It is never too late to start saving for retirement. Even starting at age 35 means you will have more than 30 years to save. The type of IRA you choose is usually determined by your individual circumstances and preferences. A Roth IRA is

Is a 408 (k) the same as a Simplified Employee Pension (SEP)?

July 7, 2024 No Comments

A: A 408 (k) is not the same as a Simplified Employee Pension (SEP). The SEP plan is a retirement plan that allows employers or self-employed individuals to contribute certain amounts of money to an employee’s account. It must be part of a written arrangement

How do you rollover/transfer a 401(k) to another 401(k)?

July 7, 2024 No Comments

A: When an employee leaves a job due to retirement or termination, the question about what to do with the accumulated balance of an employer-sponsored plan such as a 401(k) quickly follows. A 401(k) plan can be left with the original plan sponsor, rolled over

How does a Simplified Employee Pension (SEP) IRA work?

July 7, 2024 No Comments

A: The Internal Revenue Service allows business owners to set up traditional Individual Retirement Accounts, or IRAs, for their qualifying employees. Unlike standard IRAs, these accounts have the ability to receive employer contributions; SEP IRAs also have higher standard annual contribution limits than standard IRAs.

How does an IRA grow over time?

July 7, 2024 No Comments

A: Individual retirement account (IRA) growth depends on many factors. It relies heavily on the amount of money invested and how much risk the investor is willing to take, which shapes what types of investments are included in the account. Making regular contributions to the account

All Rights Reserved