How do I report Simple IRA contributions on a W2?

July 7, 2024 No Comments

A: Savings Incentive Match Plans for Employees, or SIMPLE IRAs, are designed for small businesses as a way to offer a retirement savings plan for employees. Contributions are made via salary deferral by the participant. Employers choose between making matching contributions based on employee contributions,

How do I retire?

July 7, 2024 No Comments

A: When considering how to plan for retirement, first think about the age at which you want to retire and the lifestyle you want to enjoy. The older you are when you retire, the longer you have to save and the fewer years you have

How do pay-as-you-go pension plans work?

July 7, 2024 No Comments

A: A pay-as-you-go pension plan is a specific type of pension scheme where the benefits are directly tied to the contributions or taxes paid by individual participants. This is in contrast to fully funded pension plans where the pension trust fund is not actively paid

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

How does taxation on life insurance for a qualified retirement plan work?

July 7, 2024 No Comments

A: While life insurance is generally a prohibited investment for retirement accounts, participants in a qualified retirement plan, or QRP, can purchase policies under certain rules. For example, in a profit-sharing plan, contributions become “seasoned” two years after deposit or after five years of participation

Can savings from a Roth 401(k) be used for college without penalty?

July 7, 2024 No Comments

A: With college tuition ever on the rise, many parents look to their retirement savings to assist with university fees. However, using a Roth 401(k) to supplement education expenses may not be as easy as with other retirement plans. Unlike a Roth IRA, there is

How are non-qualified variable annuities taxed?

July 7, 2024 No Comments

A: Non-qualified variable annuities are tax-deferred investment vehicles with a unique tax structure. These investments grow without incurring taxes until the time funds are taken out of the account, whether by client withdrawals or annuitization. Beneficiaries of a non-qualified annuity may also face certain tax

Can the non-spouse beneficiary of an IRA name a successor beneficiary?

July 7, 2024 No Comments

A: Whether the beneficiary of an individual retirement account (IRA) can name a successor beneficiary (second generation beneficiary) is determined by the provisions of the IRA plan document. In the last few years, most IRA plan documents that did not allow this option have been

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