Category Archives: Retirement

2016 IRA Year- End Reminders

Whether you are still working or retired, you should periodically review your IRAs. Here are few things to remember about year end IRA tips for 2016.   IRA Contribution limits If you’re still working, review the 2016 IRA contribution and deduction limits to make sure you are taking full advantage of the opportunity to save… Read More »

2017 401k Contribution Limit and 2017 IRA Contribution Limit

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the saver’s credit all increased for 2017. Taxpayers looking to contribute to workplace 401ks, Roth IRAs, and Traditional IRAs should be aware of the new limits in 2017. These limits could… Read More »

Surviving Spouse Beneficiary of IRA Account

What happens when a surviving spouse inherits an IRA account? A surviving spouse can roll over the balance from a deceased spouse’s eligible retirement plan into his or her own eligible retirement plan account. He or she can also elect to treat a deceased spouse’s IRA as his or her own. In such a case,… Read More »

Excess contributions to a Roth IRA

Excess contributions to a Roth IRA, including improper conversion amounts (i.e., nonqualified rollover contributions) and failed conversions, are subject to a nondeductible 6 percent excise tax until the excess is corrected. No matter what the reason, contributing beyond the IRS limit could trigger a tax penalty if you don’t take steps to handle the excess. There are… Read More »

Recharacterize IRA Contribution or Roth Conversion

What if a taxpayer makes a failed conversion of a traditional IRA to a Roth IRA (e.g., because MAGI exceeds $100,000 in the year of conversion under the pre-2010 rules), or simply wishes to change the nature of the IRA contribution? This is known at an IRA Recharacterization and be a very effective retirement planning tool… Read More »

IRS pre-approved defined contribution plans

The IRS recently announced the opening of a new twoyear period to adopt restated pre-approved defined contribution plans. These are generally profit-sharing and 401(k) plans. Preapproved plans are master and prototype plans, standardized, nonstandardized. These types of plans are normally what you’ll find offered by banks, insurance companies, brokerage firms, and other financial institutions, plus… Read More »

Retirement Plan Form 5500-EZ Return and Filing Form 5500-EZ

What is Form 5500-EZ? The Form 5500 Series is a disclosure document for plan participants and beneficiaries. The Form 5500 Series is part of ERISA’s overall reporting and disclosure framework, which is intended to assure that employee benefit plans are operated and managed in accordance with certain prescribed standards and that participants and beneficiaries, as… Read More »

Lump-sum distribution-ten year averaging option for older employees

An income averaging option that may be available to some of your older employees who are eligible, upon retirement or other separation from service, for lump-sum distributions from a profit-sharing plan. Under this income averaging option, lump-sum distributions paid to certain older employees may be eligible for special tax treatment. If a retiring employee’s entire… Read More »