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 to avoid paying taxes on Social Security income

June 30, 2024 No Comments

A: Some people have to pay federal income taxes on the Social Security benefits they receive. Typically, this occurs only when individuals receive benefits and have other substantial sources of income from wages, self-employed earnings, interest, dividends, required minimum distributions from qualified retirement accounts, and other taxable

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

June 30, 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 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,

How do I retire?

June 30, 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

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