TaxAudit Blog: Retirement

Multi-generational Family

How many of you double-check the beneficiaries of your retirement accounts? Failing to do so can have significant unintended consequences for your heirs.

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Roth IRA written on a piece of paper resting on a stack of money

Because the distributions from a Roth IRA are usually not taxable, contributions you make to them are also not deductible.

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SEP IRA

When shares of a limited partnership held in a SEP-IRA are completely sold are the gains subject to recapture as ordinary income as shown on the K-1 taxable?

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Estate Planning typed on a piece of paper

As the law currently stands for individual taxpayers, starting in the 2026 tax year, you will be able to deduct estate planning fees related to tax planning.

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Inherited IRA written on a yellow sticky note

My mom passed away about a year ago, and I inherited two IRAs. Can I roll over one of the IRAs into the other inherited IRA if it is done by direct transfer?

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IRA and Individual Retirement Account written on a block of wood

The deductibility of an IRA contribution is affected by your filing status and your Modified Adjusted Gross Income and is subject to certain limits.

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401k Rollover written on a notebook

The good news is that you can roll your 401(k) twice in one year and into an IRA without penalty, provided you take a few simple precautions.

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IRA and 401k written on eggs with a money background

When considering using retirement funds to help pay for a new home, there are generally two common options taxpayers can consider: A 401(k) plan or an IRA.

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4 small houses with questions marks on top of them

Is investing in real property, particularly rental property, a good idea for your retirement investments, especially your traditional IRA or Roth IRA?

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Inherited IRA written on a sticky note

When someone other than a spouse inherits an IRA, the IRA is considered an inherited IRA and the rules are stricter than when a surviving spouse acquires it.

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Roth and Traditional IRS Plus and Minuses

It seems like a simple idea: convert that account to a Roth and you can withdraw the money tax-free in future years. But is it a good idea for you?

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Inherited IRA

Can you inherit an IRA and not pay tax? Individual retirement accounts can transfer to a beneficiary without immediate tax consequences if no money is withdrawn

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RMD - Required Minimum Distributions

An RMD is a required minimum distribution from a retirement account such as a Traditional IRA or defined contribution plan (like a 401k).

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Golden IRA egg sitting on money

For IRA contribution purposes, certain third-party sick pay does qualify as compensation. But, there are instances where it is not considered compensation.

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Covid-19 401k Distribution

Under the CARES Act, you can receive a “qualified coronavirus-related distribution” from your retirement plan and avoid the 10% penalty on early distributions.

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Required Minimum Distributions

Retirees should be aware that, for calendar year 2020, the required minimum distribution (RMD) requirements have been temporarily suspended.

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Probate puzzle piece on wooden house

Consider the potential risks and benefits before adding an adult child or caregiver as an owner of your home, bank account, credit card, or any other asset.

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401k binder on desk

While there are several ways to save on your tax bill, one of the easiest ways is to put money away for retirement.

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Inheritance on top of money

Generally, when you inherit money it is tax-free to you as a beneficiary. However, like so much in tax law, the answer to this question is “it depends.”

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Jar with retirement savings

For some of us, retirement seems like an eternity away; for others, it is just around the corner. It is never too early to start saving for the future.

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401k nest egg

401k loans aren't reported on your federal tax return unless you default on them. Then it becomes a distribution and subject to the rules of early withdrawal.

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Stock Chart

Hello fellow taxpayers. The Wily Tax Blogger is back to kick off 2016 with a new blog about an investment management tool I’ve discovered.

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Glass globe on financial statements

My wife and I are considering installing a solar electrical system on our house - can we use the cash in our IRA to pay for it? 

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Yellow sign that says Retirement Ahead

You want to save money towards your retirement, but your employer does not offer a retirement plan, such as a 401(k). You are not alone...

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Block with Tax words on it

You have your traditional IRA account invested at your bank but you are not happy with the rate of return. You’ve heard that it’s possible to move your IRA...

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Calculator and pen on top of 1040 tax forms

My wife made a $5,000 contribution to her IRA in last year. Through using TurboTax, we learned that we don't have the earned income to support a deduction...

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Green sign that says Retirement Next Exit

You just found out your Uncle Jerry passed away and that he had listed you as the sole beneficiary to his traditional IRA account. You go down to the bank...

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Couple sitting in chairs relaxing on the beach

You have been talking to your financial advisor or hear in the news how great Roth IRAs are and that you should be contributing to a Roth IRA.

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Retired couple relaxing on a boat

I have a confession to make: I’m thirty, single and have about a hundred dollars in my savings account. In addition, I have no retirement plan!

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two people looking over financial charts

My wife has an IRA under professional management with a financial advisor here in Portland. Can we deduct the fees charged for his services?

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Pie Chart with 1/3 a 1040 tax form

Is this additional income from Social Security tax-free, or will it be added to my Gross Income for the year and be taxed as such?

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people examining retirement portfolios and graphs

You inherited a retirement account, and you opted to transfer the assets into a beneficiary or inherited IRA. What now? The “what now” depends on whether RMDs..

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TAX spelled out with tiles

Want to pay less taxes on inherited retirement accounts? Beneficiaries have options available that  may result in increased benefits and less taxes due.

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Retirement Ahead Sign

Did you retire this year or turn 70 prior to July 1st? You may have think about Required Minimum Distributions (RMDs).

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Required Minimum Distributions

When you reach a certain age the government requires that you withdraw money every year from many of your pre-tax retirement accounts, such as IRAs and 401ks.

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401k nest egg

As the end of the year approaches, the holidays are probably more on your on your mind than saving on your taxes.

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$100 bill wrapped in a bow

Inheriting money is kind of nice for people. You have usually done nothing to earn it but be born. You most likely have not worked for it. 

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Rollover IRA

The IRS is changing its interpretation of the way the one year limitation rule applies to rollovers to match the IRC and Tax Court’s interpretations.

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Supreme Court

This decision is likely to impact many taxpayers, particularly anyone expecting to inherit an IRA from a parent or someone else.

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Retirement Ahead Sign

I would like to know if I need to declare my Roth IRA and traditional IRA accounts on my tax return even if I haven't contributed to them in the last 4 years.

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church

Is there a tax benefit to making a charitable contribution to my church directly from my IRA rather than writing a check and deducting it from my tax return? 

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Financial charts and graphs

I recently filled out an online tool on a financial advisor website. It had some catchy feel good name like Dream Catcher or something of the like.

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Retirement Ahead Sign

If you are a 20 or 30 something - people in this age group should have saving for retirement at the top of their list of things to do.

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Piggy bank

Under 59½? Need some extra cash? Don’t use your retirement! It isn’t a savings account or a piggy bank to be used to buy an extra pizza on Saturday night

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401k nest egg

If your employer allows you to borrow money against your 401(k), you are essentially using the 401(k) balance as collateral for the loan and you usually make...

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This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.