Qualified Charitable Distribution (QCD)
Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches
March 3, 2009
No. For purposes of determining the taxable portion of a Roth IRA conversion or a distribution from an individual’s traditional IRA, SEP IRA or SIMPLE IRA, all of the individual’s traditional IRAs, SEP IRAs and SIMPLE IRAs are treated as one account, and the amount converted to a Roth IRA or otherwise distributed from any of those accounts are prorated to include pre-tax and post-tax amounts. Let’s look at an example:
TJ has the following accounts:
TJ converts Traditional IRA # 1 ($20,000 balance) to his Roth IRA.
Results:
For tax purposes, the conversion includes $4,000 post-tax (nontaxable) amounts and $16,000 pre-tax (taxable) amounts, determined as follows:
Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches
Who is an active participant? Active participant status affects an individual’s eligibility to take a deduction for a contribution to a traditional IRA on his/her
Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the
Definition A contribution made pursuant to a participant’s election to have a portion of his/her salary/wages contributed to his/ her employer sponsored plan rather than
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