Did you take out a required minimum distribution (RMD) this year and want to put it back? As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), RMDs are waived for 2020, including for inherited IRAs. The CARES waiver includes RMDs for individuals who turned age 70 ½ in 2019 and took…
(This post is part of my Small Business Startup & Survival Guide. You can catch up on the whole series here.) If you go to work for almost any big company these days, you’re practically guaranteed some kind of retirement plan. While pensions may be fading as a perk (except in government), they’re being replaced by…
President Obama plans to tax your retirement. That was the subject of an email I received this morning. Only it wasn’t quite on target. You see, while it’s true that President Obama’s budget proposal, which is to be released on April 10, has included a proposal aimed at retirement accounts, he’s not targeting my retirement…
When you sock money away in your retirement plan, the appeal is that the money will grow tax-deferred and be available to you for “someday.” For many taxpayers, that “someday” is right around the corner. Taxpayers who reach age 70½ in any calendar year must generally begin making withdrawals by April 1 of the next…
Taxpayer asks: Never had a 401k before so I have to ask. If all I did was put money in, didn’t take any out. Do I have to file a 1099 with my 1040or can I just file regularly with the 1040ez I do normally? I only put in about 605.00. I file single and…
Remember Studebaker? Studebaker was a manufacturing company that started in 1852 in South Bend, Indiana, making wagons for farmers, miners, and the military. Ten years after the first gasoline-powered car was tested in the U.S., Studebaker entered the car manufacturing business and it was, at one point, the largest automobile maker in the world. By…
Every now and again, I write a piece knowing that there will be a backlash of some sort. This is one of those pieces. You’d think something like a retirement plan would be easy, with little to no controversy. But since its inception under the Taxpayer Relief Act of 1997, the Roth IRA has drawn…
Let’s face it… It’s been a tough couple of years for a lot of taxpayers. More and more taxpayers have reached into their savings, including their retirement savings, in order to pay bills and otherwise make ends meet. Unfortunately, pulling that money out before retirement may feel like a good idea at the time but…
Retirement plans can be great vehicles for tax deferrals – but they can also be giant headaches when it comes to reporting for tax reasons. This is because there are so many technical rules that the potential for making a mistake is fairly high if you don’t know what you’re doing (taxgirl PSA: your plan…
