I am in the second year of taking SEPP distributions from my IRA. Can I transfer some of the funds to a new IRA with different investment options?

June 30, 2024 No Comments

A: The most recent guidance issued by the IRS and the Treasury Department is Revenue Ruling 2002-62. There is some disagreement in the field about the definition of account as it relates to “changes to account balance” in this ruling and both sides make convincing

I am making after-tax contributions to an IRA. Will I get taxed again when I withdraw it (when eligible)?

June 30, 2024 No Comments

A: No. Withdrawals of your after-tax contributions to your IRAs should not be taxed. However, the only way to make sure this does not happen is to file IRS Form 8606. Form 8606 must be filed for every year you make after-tax (non-deductible) contributions to

I am self-employed and do not need most of my IRA RMD for expenses. Can I reinvest it in Roth IRAs?

June 30, 2024 No Comments

A: You can use your required minimum distributions (RMDs) to fund your Roth IRA as a Roth IRA contribution. This is because the source from which you take the cash to fund your IRA can be from any pool of cash that you have. The

I do not want to totally get out of my retirement 401(k), but I want to take 72(t) distributions. What should I consider?

June 30, 2024 No Comments

A: The exact amount of the 72(t) distributions that you are eligible to take will be determined by your age and the IRS published interest rate for the month the calculation is done. Generally, a plan participant who is separated from service (no longer employed

I have a profit-sharing plan with my former employer. I am now trying to buy a home. Can I use my profit-sharing money to put a down payment on a house?

June 30, 2024 No Comments

A: Profit-sharing plans are retirement plans with companies that give employees a percentage of the company’s earnings. A profit-sharing plan is similar to a 401(k) because it is considered a defined-contribution plan. The sole difference is that the only entity contributing to the plan is

I have a small business (LLC), which I operate part-time. I also work full time for a company and am enrolled in a 401(k) plan. Am I still eligible to make contributions to an individual 401(k) from earnings of my part-time LLC?

June 30, 2024 No Comments

A: As long as you have no ownership in the company for which you work full-time and the only relationship you have with the company is as an employee, you can establish an independent 401(k) for your limited liability company (LLC) and fund the plan

I have two jobs. Can I contribute to two SIMPLE IRA plans?

June 30, 2024 No Comments

A: If there is no relationship between the two companies – the only link is that the employee works for both of them – then the employee can make salary deferral contributions up to an aggregate amount of $20,500, with no more than $13,000 to

I retired and transferred part of my pension distribution to a Roth IRA. If I am over 55, do I still qualify for the age 55 exemption?

June 30, 2024 No Comments

A: The age 55 exception applies only to distributions from qualified plans and 403(b) accounts. Once the assets have been credited to an IRA, that benefit no longer applies to those assets. You mentioned that you put part of your pension distribution in a Roth.

I want to close my IRA account. What percentage will I lose to tax?

June 30, 2024 No Comments

A: You can move the amount by means of a trustee-to-trustee transfer to another IRA, or roll over the amount to your 401(k). You would need to check with your current employer to determine if it will allow the rollover. This way, you will keep

I work for a university, and I have a 403(b) with TIAA-CREF. But TIAA-CREF says I cannot transfer money to another provider. Can they prevent me from transferring my money to a better investment?

June 30, 2024 No Comments

A: It depends. The IRS does permit the transfer of assets between 403(b) providers; however, employers and 403(b) providers are not required to allow such transfers. Generally, the transfer is permitted only if the new 403(b) account (to which the assets are being transferred) is

All Rights Reserved