• By Ian Berger, JD IRA Analyst Are you considering opening up a new solo 401(k) and looking to maximize your 2021 contribution? If so, you may need to act quickly. There is a December 31, 2021 deadline for establishing a new plan if you want to make 2021 elective deferrals. In a solo 401(k), the business owner is considered to wear two hats -- an employee and an employer. This allows the [...]

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    By Sarah Brenner, JD Director of Retirement Education Question: Can someone take an in-service withdrawal from their 401(k) and directly transfer it to their IRA, then take a QCD from the IRA to satisfy the RMD amount attributed to the 401(k)? I am 72 years old and I am still working, but own more than 5% of the company; therefore I can’t use the “still working” exception. [...]

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    By Andy Ives, CFP®, AIF® IRA Analyst As we careen into the holiday season, there remains a deceitful underbelly of dirtbags operating their typical scams. Giant inflatable Christmas decorations in front of your home or a menorah in the window will not dissuade criminals from working a dishonest angle. “Good cheer” is the perfect cover for bad deeds. (See: The Grinch.) Whether the [...]

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    By Sarah Brenner, JD Director of Retirement Education The IRS has released the cost-of-living adjustments (COLAs) for retirement accounts for 2022. As expected, due to inflation in the economy, many of the dollar limit restrictions on retirement accounts will increase next year. For savers looking to max out 401(k) contributions, 2022 will bring higher contribution limits. The salary [...]

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    By Andy Ives, CFP®, AIF® IRA Analyst Question: When calculating my required minimum distribution (RMD) amount, is my Roth IRA balance added to my traditional IRA balance? I understand I don’t have to withdraw from my Roth - just want to know how RMD’s are calculated. Thanks Answer: When calculating your RMD, only the traditional IRA balance on 12/31 of the previous year [...]

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    By Ian Berger, JD IRA Analyst The September 29, 2021 Slott Report summarized the rules for taking non-hardship withdrawals from 401(k) plans. This article will focus on the hardship withdrawal rules. Most company savings plans allow you to pull out your funds to take care of a financial hardship at any age. But plans are not required to permit these withdrawals, so check your written plan [...]

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    By Andy Ives, CFP®, AIF® IRA Analyst As Roth IRA conversions become more popular, questions and misconceptions abound. In no particular order, here are a dozen Roth IRA conversion facts to be aware of: 1. Anyone with an IRA can do a Roth conversion. There are no income limits. You can have $0 earned income and do a Roth conversion. You can make a million dollars and convert. [...]

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    By Ian Berger, JD IRA Analyst As discussed in the October 18 Slott Report, spousal beneficiaries of IRAs can take advantage of certain payout rules that aren’t available to non-spouse beneficiaries. For example, a surviving spouse who remains a beneficiary can defer required minimum distributions (RMDs) until the year her deceased spouse would have turned age 72.  Also, when RMDs begin[...]

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    By Sarah Brenner, JD Director of Retirement Education Question: I have four IRAs. Does the once-per-year IRA rollover rule mean I can only take one distribution per year in total or does it mean I can only take one distribution per year from each of my four IRAs? Glen Answer: Hi Glen, The once-per-year rollover rule can be confusing. The IRS has made it clear in guidance that [...]

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    By Andy Ives, CFP®, AIF® IRA Analyst Charlie Brown, wearing a ghost costume full of too many eye holes cut in all the wrong spots, famously peered into his trick-or-treat bag and said, “I got a rock.” One of the best parts of Halloween remains. It is the moment at the end of the night when, after an evening of hard work, a plastic jack-o-lantern or pillowcase full of candy is dumped [...]

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