Comments for New IRA Rules

Comment on 60 Day Rollover Rule by Phillipky1

Phillipky1 — Fri, 06 Apr 2012 00:48:00 +0000

This is a terrible article. I say that because it doesn’t warn folks about having to have other money to make up the 20% mandatory tax withholding from any indirect rollover where the rollover funds going to the new IRA are not coming from an IRA (i.e. funds are coming from a 401(k), 403 (b), 457 Deferred Compensation, and any other retirement plan other than an IRA). This can be a serious pitfall.

Comment on IRA Conversion Rules by Owascotucker

Owascotucker — Sun, 11 Mar 2012 15:35:00 +0000

During 2012 I will have to meet the RMD rules when becoming 70 1/2 in July. Does it make sense (or is it possible) to open a Roth IRA with those funds?

Comment on Best Roth IRA Providers by Dlhalloran, CFP

Dlhalloran, CFP — Thu, 09 Feb 2012 22:21:00 +0000

Guaranteed tax free income for life is you use a Variable Annuity Fixed account inside a Roth IRA and then reinvest the fixed earnings in a managed portfolio. When you retire, just annuitize the portfolio and get an income for life, Tax Free

Comment on SIMPLE IRA Rules by Bob43barth

Bob43barth — Fri, 27 Jan 2012 23:46:00 +0000

As a retiree working part tine, being eligible to contribute $6000, I contributed 4889 in 2011. Later in 2012 I computed my total income tax to be under 2000. Only about 3000 dollars of this contribution was useful as a tax credit. If I take it all back as a distribution of 28,000 dollars total, in 2012, is the entire distribution taxable next year, or is there an allowance for a previous contribution not completely creditable?

Comment on IRA Withdrawal Rules by IRA Rules

IRA Rules — Wed, 26 Oct 2011 00:21:00 +0000

Use this worksheet to figure this year’s RMD for your traditional IRA.

Comment on IRA Withdrawal Rules by IRA Rules

IRA Rules — Wed, 26 Oct 2011 00:10:00 +0000

Hi Betty!

Contributions can be made to your Roth IRA regardless of your age.

Comment on IRA Withdrawal Rules by Betty Richey

Betty Richey — Mon, 24 Oct 2011 18:56:00 +0000

When I make my withdrawal from my IRA can I open a Roth IRA to put it in? I am 70.

Comment on IRA Withdrawal Rules by Anonymous

Anonymous — Tue, 04 Oct 2011 20:24:00 +0000

Hi Walter! Are you sure that it’s an IRA that you have? Contributions are only supposed to be made to your traditional IRA for each year that you receive compensation and have NOT reached age 70.5. If you opened it when you were 74, i’m not sure how you would make qualified contributions.

Generally, you must start receiving distributions from your IRA when you reach the age of 70.5. These are referred to as ‘Required Minimum Distributions’. If there are no distributions, or if the distributions are not large enough, you could have to pay a 50% excise tax on the amount that has NOT been distributed as required.

To figure your required minimum distribution for each year bydividing the IRA account balance by the applicable distribution period or life expectancy.

You can learn more from IRS 590 and it’s advised to contact your IRA custodian to discuss your specific details.

I would also contact your CPA to confirm whether it’s an IRA or not. My guess is that it could be a CD instead of an IRA.

Hope that helps!

Comment on IRA Withdrawal Rules by Ben

Ben — Tue, 04 Oct 2011 15:15:04 +0000

To figure your required minimum distribution for each year bydividing the IRA account balance by the applicable distribution period or life expectancy.

You can learn more from IRS 590 and it’s advised to contact your IRA custodian to discuss your specific details.

I would also contact your CPA to confirm whether it’s an IRA or not. My guess is that it could be a CD instead of an IRA.

Hope that helps!

Comment on IRA Withdrawal Rules by Walter

Walter — Mon, 26 Sep 2011 21:48:22 +0000

Hope that you can answer my question and hope that this is the page for such.

My bank has notified me that I have a small IRA coming due in October. I took it out as a tax-savings measure. It has accumulated to $2,600. It is not really a part of my retirement, just an ill-conceived investment by a CPA. I have had it for 7 years. I am 81 years old. I plan on cashing it in. What sort of penalty will there be?
Walter