What are the dormancy and escheatment rules for IRAs?

July 7, 2024 No Comments

A: The dormancy and escheatment rules for IRAs vary by state, as they do for all financial assets subject to escheatment. However, regardless of the state, the dormancy period for IRAs is slightly different than for other types of assets. It is especially important to

What are the IRS guidelines on the 401(a)?

July 7, 2024 No Comments

A: Because of the customizable nature of 401(a) plans, the Internal Revenue Service (IRS) has few hard-and-fast regulations for their administration. However, the guidelines in place are very similar to those set for the administration of 401(k) plans. Specific IRS Guidelines Though there are few

What are the main differences between a provident fund and a pension fund?

July 7, 2024 No Comments

A: Provident funds and pension funds are types of retirement plans used around the world, but their specifics differ from region to region. Provident funds are prominent in Asia and Mexico, generally operating like Social Security does in the United States. Pension funds, also known

What are the main differences between a Simplified Employee Pension (SEP) IRA and a Traditional IRA?

July 7, 2024 No Comments

A: A simplified employee pension IRA is a type of traditional IRA that is designed for self-employed individuals or small business owners. For the most part, SEP IRAs and traditional IRAs are similar. However, when it comes to contributions, there are some major differences between

What are the maximum Social Security disability benefits?

July 7, 2024 No Comments

A: The average Social Security disability benefit amount for a recipient of Social Security Disability Insurance (SSDI) in 2018 is $1,197 per month, but a beneficiary can receive either less than this or up to $2,788. These benefits are based on average lifetime earnings, not on household

What are the most common scams regarding Social Security benefits?

July 7, 2024 No Comments

A: There are a number of common scams that target Social Security benefits. These scams generally involve criminals who impersonate Social Security workers or companies, so that they can obtain Social Security numbers and other personal information. Receiving an Extra Social Security Check One popular

What are the penalties for withdrawing from my Traditional IRA less than a year after acquisition?

July 7, 2024 No Comments

A: Withdrawals from your Traditional IRA will be treated as ordinary income, and if you are under age 59.5 when the distribution occurs, the amount will be subject to an early-withdrawal penalty of 10% (of the amount withdrawn). The amount will be exempted from the

What are qualified retirement plan types?

July 7, 2024 No Comments

A: A qualified retirement plan is simply a plan that meets the requirements set out in Section 401(a) of the U.S. tax code. This does not mean that other types of plans are not available, but the majority of retirement savings programs offered by employers

What are the pros and cons of naming a trust as the beneficiary of a retirement account?

July 7, 2024 No Comments

A: In the financial community, this has been a topic of an ongoing debate between estate planning attorneys and financial advisors. For retirement accounts, investors are given the opportunity to name both primary and contingent beneficiaries – that is, the person or entity who will

What are Social Security Credits for and how can I earn them?

July 7, 2024 No Comments

A: To determine who is eligible for various Social Security benefits, the Social Security Administration (SSA) uses a system of credits that establish whether minimum work requirements have been met. Typically, the number of credits required in order to be eligible for benefits is 40.

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