Tax Warrior Chronicles

RMD **Reminder** and Effective Ways to Use Them

Posted on Tue, Nov 23, 2021

By: Brandon Caine, CPA, and Robert Polans, CPA, MT

 

As we approach the 2021 tax filing season, remember it is also Required Minimum Distribution (RMD) season. You generally have until December 31, 2021, to take your RMD out of tax-deferred retirement accounts to avoid costly penalties, unless this is your first RMD year, in which case you get a grace period until April 1, 2022. You generally do not have to take RMD’s from your employer’s plan until you terminate or retire. Individuals who inherited qualified plan accounts, including either traditional or ROTH accounts, must take their first RMD by December 31 of the year following the death of the original account owner. While many take

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IRS Springs a Surprise Interpretation of the 10-Year Rule Under the SECURE Act

Posted on Thu, Apr 29, 2021

By: Elizabeth Witko, Macc, MSF and Robert N. Polans, MT, PFS

 

Important Update:

Shortly after this blog was published on April 29, 2021, we received “unofficial word” from several sources including the AICPA and NAIFA that the IRS intends to correct their confusing guidance in Publication 590-B on Stretch IRA’s and the SECURE Act.  We have been informed that the recent IRS Publication update did not reflect the views of IRS officials drafting new regulations or some Congressional Committee staff members who assisted in the writing of the SECURE Act.  As more information becomes available regarding this development, we will provide an update.

 

Are you someone that inherited an IRA post

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IRS Grants Extensive Relief to 2020 RMD Recipients

Posted on Mon, Jun 29, 2020

If you received a Required Minimum Distribution (RMD) in 2020, you should take careful note of guidance contained in the recently issued IRS Notice 2020-51 regarding the CARES Act’s waiver of 2020 RMDs and a taxpayer’s ability to rollover such distributions.

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The SECURE Act - Significant Changes for IRAs and 401(k)s – Part II

Posted on Fri, Jan 03, 2020

By: Beth Gaasbeck, CPA, MBA and Robert N. Polans, CPA, MT, PFS

 

Welcome to Part II of our two-part blog discussing the SECURE Act and its impact on retirement and estate planning.  The Act was signed by the President on December 20, 2019, and is effective as of January 1, 2020. Today’s focus is on the not-so-good parts of the Act.

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The SECURE Act - Significant Changes for IRAs and 401(k)s – Part I

Posted on Thu, Jan 02, 2020

By: Beth Gaasbeck, CPA, MBA and Robert N. Polans, CPA, MT, PFS

 

On December 20, 2019, President Trump signed the Setting Every Community Up for Retirement Enhancement Act (the SECURE Act) as part of the Further Consolidated Appropriations Act, 2020, effective 1/1/2020.  Not exactly a Holiday present, there are favorable and unfavorable provisions impacting your retirement planning.  In this two-part series, we will take a closer look at the highlights under the  law.

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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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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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April 1 Deadline - Tax Planning for Required Minimum Distributions

Posted on Mon, Mar 24, 2014

When it comes to taxes, reaching age 70-1/2 is an important milestone. It is the age you must begin taking minimum annual distributions from your traditional IRAs. Additionally, if you have already retired, you must also begin making mandatory withdrawals from your employer retirement plans. If you do not take these minimum distributions when you are required, you could get hit with a 50% tax penalty.

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April 1st is Critical for Tax-paying Seniors with IRAs & QRPs

Posted on Tue, Mar 26, 2013

 

A critical date is approaching for those who attained age 70.5 during 2012. If that is you, then by April 1, 2013, you must commence making required minimum distributions (“RMD”) from your traditional IRAs. If you are/were a participant in a qualified retirement plan ("QRP," e.g., 401(k) plan) you must begin taking distributions by April 1st of the calendar year following the later of the year in which you reach age 70.5, or retire; except for 5% owners, who have the same rules as IRA owners.  A qualified plan, however, may provide a specific required beginning date (“RBD”), so be sure to check with your former or current employer, if applicable.

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