A Refresher on Recharacterizations
One of our IRA owners died last year. His daughter, who is the executrix of his estate, came in today and asked to recharacterize his 2021 Roth IRA contribution because he was not eligible to make that contribution. May she do this? Yes. According to Treasury...
IRA Excess Contributions and How to Handle Them
IRA owners sometimes contribute more than they are permitted. Or they may contribute only to later discover that they cannot deduct the contribution. And sometimes they simply want to take the contribution out for some other reason. Whatever the situation, IRA...
SECURE 2.0 Adds New Penalty-Free Distribution Option for Certain Emergency Expenses
This article is part of a multi-part series that describes the penalty-free distribution options created by SECURE 2.0 Distributions taken from qualified plans and IRAs before age 59½ are often subject to a 10 percent early distribution penalty tax. But numerous...
