Entries filed under 'IRA Distributions'

    Understanding Eligible Rollover Distributions

    November 17, 2016 3:48 PM by Brian Dobbis

    The law has some peculiar loops and twists.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    A rule of thumb for retirement investors says to roll over employer plan assets, such as a 401(k), 403(b), or governmental 457, to an IRA to continue the deferral of taxation. Most of the time, this advice is well founded. But an investor may roll over only an eligible rollover distribution (ERD).  

    Read More »

    Halloween Tip: Light Up Your IRA Checklist

    October 28, 2016 9:17 AM by Brian Dobbis

    Now that year-end is approaching, be sure to review important deadlines and retirement plans before the holidays set in.  

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    Once you get past all the trick-or-treaters on Halloween, why not get a jump on year-end retirement planning before hectic holiday schedules keep you awake at night. Consider these important questions:

    Read More »

    SIMPLE IRA Rollovers and Distributions: Proceed with Caution

    September 24, 2015 5:12 PM by Brian Dobbis

    Failure to observe holding rules for newly established plans can result in stiff penalties. 

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    A SIMPLE IRA can serve as an attractive retirement-savings vehicle for small-business owners and their workers. But plan simplicity may become slightly more complicated for the uninformed when it comes to taking distributions.

    Read More »

    New Exception to Early-Distribution Penalty

    July 31, 2015 9:10 AM by Brian Dobbis

    New law extends the exceptions on early-distribution penalties to federal employees and includes all governmental retirement plans.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    On June 29, 2015, President Barack Obama signed a law that expands the universe of retirement plans that will not be subject to the 10% early-distribution penalty. The "Defending Public Safety Employees’ Retirement Act" broadens both the number of workers and the types of plans eligible for the exception.

    Read More »

    Making Early Retirement Withdrawals without Penalty

    June 12, 2015 9:42 AM by Brian Dobbis

    There are several ways individuals can avoid early-withdrawal penalties if they take distributions from their IRAs before reaching 59½. A so-called 72(t) payment plan is one way.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    Do you have clients who want or need to get access to their retirement funds before age 59½? Taking an IRA distribution prior to that age generally subjects the account owner to both income taxes and a 10% early-withdrawal penalty, unless an exception applies. In a previous blog—“Taking Retirement Withdrawals before 59½ without Penalty”—we offered a broad overview of the statutory exceptions to the early-distribution penalty.

    Read More »

    Know Your RMD Rules

    April 30, 2015 1:55 PM by Brian Dobbis

    Different rules apply to IRAs and 401(k) plans when it comes to taking required minimum distributions. Investors and their advisors should know the difference.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    The federal government requires that, upon turning 70½ years old, individuals who own IRAs must commence taking minimum distributions, regardless of whether or not they are still working. Roth IRAs are the lone exception, because they have no minimum distribution requirements. 

    Read More »

    Saving for Retirement: Be Careful Not to Over Save

    March 5, 2015 5:15 PM by Brian Dobbis

    Rules governing excess contributions make it potentially costly to overfund an IRA.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    When it comes to IRAs, you can have too much of a good thing. And that’s a bad thing.

    It’s a common error to overfund IRA accounts. "Excess contributions," as the IRS refers to them, typically occur when individuals unwittingly deposit funds that are not permitted to be made to IRA accounts. Much of the time, account owners are unaware that they ran afoul of the rules and, upon being made aware of their error, are unsure of how to correct it. Paradoxically, in order to fix the mistake, time is of the essence—but the account owner first must be aware of the error.

    Read More »

    In-Service Distributions May Fuel Rollover Market

    February 12, 2015 4:00 PM by Brian Dobbis

    Most employers permit workers to take distributions from their plans for the purpose of rolling them over to IRAs. This presents a potentially significant opportunity for advisors who want to build their IRA business.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    Assets in 401(k) retirement plans currently represent $4.5 trillion of the $6.6 trillion in assets invested in defined-contribution plans.1 Moreover, private-sector defined-benefit plans have an additional $3.2 trillion invested.2 This, coupled with more Americans living later into their golden years, creates extraordinary “money in motion” rollover opportunities.

    Read More »

    New IRA Rollover Rule is a Game Changer

    February 5, 2015 5:15 PM by Brian Dobbis

    Be careful not to step out of bounds.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    The new year ushered in a new rule for IRA rollovers that effectively restricts account owners’ access to their IRA funds. It behooves advisors and their clients to know enough about the rule to avoid committing an unintentional foul, which could result in painful penalties.

    Read More »

    IRA Rollovers: Finding the Right Fit

    July 24, 2014 6:30 PM by Brian Dobbis

    An IRA rollover can offer potential benefits to many plan participants, but advisors must be sure it is the best option for a client before recommending one.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    Numerous announcements from agency officials, and a smattering of lawsuits brought by disgruntled participants who feel misled, have made it clear that IRA rollover activity will continue to receive greater regulatory scrutiny from agencies such as the Government Accountability Office (GAO), the Financial Industry Regulatory Authority (FINRA), and the Department of Labor (DOL).

    Read More »