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

If a company undergoes an acquisition can an employee withdraw 401(k) funds tax free?

June 30, 2024 No Comments

A: Although the participant may be eligible to withdraw the funds if a plan is terminated as a result of an acquisition or other similar transaction, this does not mean that the 10% penalty will be waived. However, the participant would qualify for an exception

If an IRA owner dies after starting required minimum distributions (RMD) but the spouse is under 70.5, can the spouse roll over the IRA into his/her own IRA, and stop RMDs until age 70.5?

June 30, 2024 No Comments

A: If the IRA owner dies after the required beginning date (RBD) and his/her beneficiary is his/her spouse, the spouse beneficiary may either: Begin death distributions by Dec 31 of the year following the year the IRA owner dies. In this case, the distributions must

How do I know if I qualify to open a HSA (Health Savings Account)?

June 30, 2024 No Comments

A: The Health Savings Account (HSA) was established as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 as a savings plan for individuals with high-deductible health plans (HDHP). To qualify in 2009 as a HDHP, your plan must satisfy both of

How do I report Simple IRA contributions on a W2?

June 30, 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,

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