Category Archives: Tax Education

How You May (and May Not) Satisfy Your RMD

As we edge closer to the last few months of the year, some retirement investors must consider their required minimum distribution (RMD) amounts. Excluding the first RMD, those 70 ½ or older must take these required distributions by December 31 of each year. If you don’t take your RMD amount by the applicable deadline, the […]

10 Exceptions to the Early Distribution Penalty Tax

If you are an IRA holder under age 59½, taking an IRA distribution could result in a 10 percent early distribution tax. According to the IRS, this is to discourage the use of IRAs for purposes other than one’s retirement. The 10 percent penalty tax applies to the part of the distribution you must include […]

How to Undo Your IRA Conversion

The terms “conversion” and “recharacterization” are often confused with one another, or they are simply unclear. They are not quite “two sides of the same coin,” but they are very much related to one another. A conversion is a reportable movement of assets from one account to a Roth IRA. Most retirement investors can convert […]

More rollover options for your SIMPLE IRA

A Savings Incentive Match Plan for Employees (or SIMPLE IRA) may be a welcome alternative to conventional employer-sponsored plans. SIMPLE IRA plans do not have the startup and operating costs of 401(k) or other workplace plans. Generally, any small business with 100 or fewer employees can sign up for a SIMPLE IRA. These plans may […]

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