Excess accumulation penalty (RMD excise tax)
Definition 50% excise tax that is applied to required minimum distribution (RMD) amounts that are not distributed from the retirement plans by the applicable deadline.
IRA
Individual retirement accounts include traditional IRAs, Roth IRAs, SIMPLE IRAs and SEP IRAs. Traditional and Roth IRAs are funded by the individual owner. SEP IRAs are funded by employers. SIMPLE IRAs are generally funded by employers and employees. Special tax rules apply to these accounts.
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When Do I reach Age 70 ½ for RMD Purposes?
Definition You reach age 70 1/2 ( 70.5) 6-months after the 70th anniversary of your date-of-birth. The significance of age 70 1/2 The significance of
401K
Age 70 ½
Definition 6-months after the 70th anniversary of an individual’s date-of-birth. The significance of age 70 ½ is that, for IRA owners and plan participants who
401K
Required Minimum Distribution (RMD)
Definition The minimum amount that must be withdrawn from retirement accounts, including qualified plans, 403(b) accounts, 457(b) accounts or IRAs, each year. For retirement account
401K
Required beginning date (RBD)
Definition The date by which a retirement account owner must begin distributing required minimum distribution (RMD) amounts from a Traditional, SEP or SIMPLE IRA, a
$10,000 Penalty-Free Distributions Is Reprieve For Domestic Abuse Victims
Denise Appleby, APA, AKA, CISP, CRC, CRPS, CRSP SECURE Act 2.0 gives domestic abuse victims a break from the 10% additional tax on early distributions.
Distribution Strategies
SECURE Act 2.0 Allows QCDs of $50,000 to Split-interest Entity
By Denise Appleby SECURE Act 2.0 allows a one-time election to make QCD to a split-interest entity. Subject to a $50,000 aggregate limit. Prior to
Domestic abuse distribution
A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual
Retirement Planning
What is a Roth IRA? Everything you need to know.
A Roth IRA is a retirement savings vehicle that individual taxpayers can establish. The Roth IRA bears many similarities to the traditional IRA and some distinct differences. Unlike contributions to a
Advisor Retirement Planning Resources
How to Advise Clients of The RMD Age Increase
By Denise Appleby, APA,QKA,CISP,CRC,CRPS,CRSP Details and examples of the SECURE Act 2.0 RMD age change equip you to guide clients promptly. Missing RMD deadlines, miscalculating
