Regulations

Alimony Payments for Making IRA Contributions

Eligible Compensation Compensation for Traditional and Roth IRA contribution eligibility generally is income a person earns from working. Compensation is defined in IRC Sec. 219(f)(1), Treasury regulations, and IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs). The following types of income are considered eligible compensation for IRA contributions. • Salary • Wages • Tips […]

Former Employer Plan Participant Loan Offset vs Deemed Distribution

While work retirement plans (e.g., 401k, 403b, and 457b) are not required to allow for participant loans, the majority of them now do. Many solo 401k plans and ROBS 401k plans get funded with former employer plan funds which may contain outstanding participant loans. Often times, the individual is not aware the outstanding participant loan […]

IRS Publishes Reminder of Fast Approaching August 31, 2020 Deadline to Rollover or Repay RMD from IRAs and Solo 401k Plans

On August 24 the IRS issued a reminder to IRA owners and employer plan  (e.g., solo 401k plan and full-time employer 401k plans) owners and beneficiaries of the fast approaching  August 31, 2020 deadline to rollover or repay Required Minimum Distribution (RMD) received in 2020 to avoid paying taxes. This RMD relief was provided as […]

On July 29, 2020 the IRS issued a reminder that the Coronavirus Aid, Relief, and Economic Security (CARES) Act can help eligible taxpayers access funds from retirement plans and IRAs

The IRS issued a reminder on July 29, 2020 that retirement account (e.g., solo 401k plans) and IRA account holders affected by COVID-19 may be able to access their retirement funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, provided they meet one of COVID-19 requirements (see below). The Deadline As the law […]

Latest IRS Reminder on No RMD Requirement in 2020

On July 17, 2020 the IRS released a reminder relating to not being required to take required minimum distributions (RMDs) in 2020 from IRAs and retirement plans such as 401k plans including solo 401k plans for the self-employed.   The waiver of the 2020 RMD from IRAs and solo 401k plans, for example, result from the […]

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