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...
SECURE 2.0 Provides New Ways to Take Penalty-Free Distributions
The SECURE 2.0 Act provides more ways for individuals to access their retirement savings and creates new exceptions to the 10 percent early distribution penalty tax. Normally, IRA owners and retirement plan participants are subject to this penalty tax if they withdraw...
Proposed Regulations Govern Making Participant Elections and Spousal Consents Electronically
The coronavirus pandemic resulted in restrictions on where and how people could meet. These limitations—including remote work requirements—made it harder for some participants to take distributions from employer-sponsored retirement plans. In response, the IRS issued...
What is a Form 1099-R and Why Did I Get One?
An old, well-known adage says that only two things in life are guaranteed: death and taxes. While we may not have much control over the first of life’s guarantees, we can aim to fully understand and be prepared for the second, right? Unfortunately, tax time often...
Changing a SEP IRA to a 401(k) Plan
Changing a SEP IRA to a 401(k) plan: What small business owners need to know Small business owners who decide to set up a retirement plan to benefit themselves and their employees may consider a Simplified Employee Pension (SEP) IRA. Not only is it a low-cost option...
Hidden Benefits of a 401(k)
Introduction: What small business owners need to know about 401(k)s Planning for a comfortable retirement is a major concern among American workers— particularly among older employees, with less time left in the workforce. In fact, 64% of employees are worried about...
Roth Conversions: Should You Do It?
What is a Roth conversion? A conversion is a taxable, reportable movement of assets from either a Traditional IRA (including Traditional IRAs that hold SEP contributions) or a SIMPLE IRA (after a two-year period) to a Roth IRA. When converting assets to a Roth IRA,...
Convert Your SIMPLE IRA to a 401(k) Plan
Four common questions small business owners have about converting their SIMPLE IRA to a 401(k) plan Small business owners looking to implement a retirement plan for their small business commonly decide a SIMPLE IRA is a good savings vehicle for them to start out with;...
