Retirement Watch Weekly
What Is the Required Minimum Distribution for an IRA?
The required minimum distribution (RMD) rules limit the extent to which an individual can use the tax deferral of an IRA or other qualified retirement plan. The RMD rules dictate when distributions must be made from the retirement plans of certain taxpayers. The rationale behind the RMD rules is that Congress provided the tax benefits […]
Bob’s Journal for 5/6/21
SECURE Act 2.0 Receives First Congressional Review The Securing a Strong Retirement Act of 2021 (SECURE Act 2.0) is sponsored by the same congressional leaders who in late 2019 pushed through the Setting Every Community Up for Retirement Enhancement (SECURE) Act. The SECURE Act 2.0 was reviewed by the House Ways & Means Committee yesterday, […]
What You Can and Can’t Do with RMDs
The tax code and regulations have detailed and specific rules concerning who must take required minimum distributions (RMDs), when they must be taken, and how they are calculated. But there is no guidance about what a retirement plan owner or beneficiary can do with the RMD. So let’s clear up some of the confusion. First […]
Do 401(k)s Have Required Minimum Distributions?
The required minimum distribution (RMD) rules limit the extent to which an individual can use the tax deferral of a qualified retirement plan. The RMD rules dictate when distributions must be made from the retirement plans of certain taxpayers. The RMD rules apply to all qualified retirement plans, including traditional IRAs and 401(k)s. But the […]
Another SECURE Act Surprise for Inherited IRAs
The IRS recently issued an interpretation of the SECURE Act that surprised most, if not all, professionals who have reviewed the law. The Setting Every Community Up for Retirement Enhancement (SECURE) Act, enacted in December 2019, contained a number of provisions related to retirement and estate planning. One of those provisions eliminated the Stretch IRA […]
Signs That Inflation is Set to Rise
Inflation is likely to rise quickly in the next few months, and that could put the Federal Reserve in a difficult situation much earlier than it anticipated. A number of inflation pressures are increasing. One example is rising demand for many goods and services as more vaccines are administered and economic activity increases. That puts […]
How Safe Is Your Money?
Credit Suisse recently report-ed a $4.7 billion loss from its dealings with one client, Archegos Capital Management. As a consequence, the bank slashed its dividend, reduced its share buybacks and announced key employees were leaving the firm. The Swiss bank was one of several global financial firms that suffered loss-es from its dealings with Archegos […]
Maximizing the Power of Donor-Advised Funds
Thanks to the Tax Cuts and Jobs Act enacted in 2017, use of donor-advised funds (DAFs) is soaring. They remain one of the best ways for many people to maximize the tax benefits of charitable giving. Contributions to DAFs increased by 80% from 2015 to 2019, according to the National Philanthropic Trust (NPT). Grantmaking from […]
