Tax Warrior Chronicles

Exceptions to Early Withdrawal Penalty for 401(k) & IRA Distributions

Posted on Thu, Nov 30, 2017

By: Sherri Sorbello, CPA


Most distributions from 401(k) plans and IRAs are subject to a 10% early withdrawal penalty if they are taken before you reach age 59 ½.  However, like most tax rules, there are certain exceptions allowing you to withdraw funds without a penalty.  This blog will address the most common exceptions to the 10% additional tax on early withdrawals. 

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“Stressed” Retirement System Forces GAO to Review 401(k) Contribution Deductions

Posted on Thu, Oct 26, 2017

By: Eric R. Elmore


While Congress waivers on whether to reduce retirement savings deductions, all pillars of our retirement system appear to be under stress. A recent Government Accountability Office (GAO) Report highlights the challenges faced by each component of the U.S. "retirement system" and argues the case for a fundamental re-evaluation to better promote future retirement security. And, though the Republican-led Congress rarely follows the GAO’s lead, if you have a 401(k), you should be paying attention to what it is saying.

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The Millennial Series: Part VIII – Understanding Your Company’s Retirement Plan Options

Posted on Thu, Oct 19, 2017

By: Robert Vogel, CFP


To millennials, retirement seems a lifetime away. And, it is! However, now is the best time to start saving for retirement, says our guest blogger, Robert M. Vogel, CFP®, Director of Financial Planning for JFS Wealth Advisors in Doylestown, PA. In today’s post, Robert gives millennials—or anyone new to the workforce—an overview of understanding and maximizing company-sponsored retirement plans like a 401(k) or IRA, in plain and simple terms.

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Rules of the 60-Day Rollover Period for Qualified Plans and IRAs

Posted on Thu, Mar 30, 2017

By: Kejsi Merkuri and Robert Polans, CPA, MT, PFS, ChFC


Are you planning to roll over your qualified plan or IRA to achieve higher returns, broader investment opportunities, or to reside at a better financial institution? Be careful! There are several things to know before entering the 60-day rollover period to avoid costly tax and penalty situations. 

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IRS Rules Post-Retirement Payments Are Subject to Self-Employment Tax

Posted on Tue, Feb 21, 2017

By: Tiffany Diaz, CPA


In a perfect world, retirees would receive post-retirement payments from former employers tax-free. However, a recent IRS letter ruling puts a damper on that notion. In this short blog, we give an overview of the details and the only exception to the rule regarding post-retirement payments.

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Tax Benefits from Hiring Children to Work in the Family Business

Posted on Mon, Jun 15, 2015

Although the unemployment figures have improved, it is difficult in the current job market for some college students and recent graduates to find seasonal or permanent jobs. As an alternative, the family business is a place for some to find work or to find their first job – even for teenagers.  As explained in this blog, employing a child may generate tax savings regardless of how the family business is organized.

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LAST-MINUTE TAX TIP – There’s Still Time to Make Your IRA Contribution for the 2014 Tax Year

Posted on Thu, Apr 09, 2015

It’s crunch time and CPAs everywhere are striving to help clients with last-minute tips to lower tax liabilities. With just days left until the April 15th deadline for individual returns, there is still time for you to make a positive difference on your tax return.  One such way is by making a contribution to your IRA.

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Advantages of Naming Spouse as Sole Beneficiary of IRAs

Posted on Tue, Nov 04, 2014

All named beneficiaries of a decedent's IRA can receive a distribution from the decedent's IRAs. However, a surviving spouse who is the designated sole beneficiary of the decedent's IRA has two unique options that are not available to other beneficiaries. The surviving spouse may: (1) roll over the decedent's IRA into an IRA established in the spouse's own name ("spousal rollover"), or (2) elect to treat the decedent's IRA as the surviving spouse's own IRA ("election").  The surviving spouse is treated as if she had funded the IRA with either of these options.

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IRS To Allow Purchases of Longevity Annuities Through Qualified Plans and IRAs

Posted on Fri, Jul 18, 2014

With Baby Boomers living longer and healthier lives, the financial world has been in a bit of a conundrum trying to figure out how retirees can make their money last as long as they may now live.  Partially in response to this concern, the IRS has issued final regulations updating the required minimum distribution laws to make it easier for individuals to buy  deferred "longevity" annuities under qualified defined contribution plans (e.g. 401(k) plans), individual retirement annuities and accounts (IRAs), and eligible governmental 457 plans.  These regulations will permit retirees to use a limited portion of their savings to purchase guaranteed income for life starting at an advanced

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2014 Q1 Tax Headlines – A Roundup of This Year’s Tax Changes, So Far

Posted on Thu, Apr 24, 2014

While The Tax Warriors® have been hard at work for the last few months, completing tax returns, shoveling out of snow storms and filming Oscar-worthy videos, the tax laws have been just as active.  There have been Tax Court and Supreme Court case decisions, newly released IRS guidance, and Congressional action all focused around taxes. Below is a summary of the most important tax developments that have occurred in the past three months that may affect you, your family and your investments.

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