Category - IRAs

1
The Difference Between IRA Contributions And Rollovers
2
You Inherited An IRA — Now What?
3
Guidance on Qualified Charitable Contributions From Your IRA For 2012
4
Annual Gift Tax Exclusion Increases in 2013
5
IRS Cracking Down On IRA Rules

The Difference Between IRA Contributions And Rollovers

Often there is confusion about what constitutes a “contribution” and a “rollover” into an IRA.  This post is intended to clear up the difference.

While both activities are technically contributions, there’s a major difference between the two.  The most significant of the differences is that with a regular annual contribution there are several limits imposed that can be quite restrictive.

Annual Contribution Limits

For an annual contribution to a traditional IRA or a Roth IRA, you are limited to the lesser of $5,000 or your actual earned income for the year.  If you have no earned income, you’re not allowed …

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You Inherited An IRA — Now What?

IRAs (Individual Retirement Account) are great investment vehicles for tax deferred growth and estate planning. An IRA has a designated beneficiary when the account is set up that makes it easy to determine who should inherit the money. Usually the beneficiary is a spouse but sometimes it is a minor or a non-spouse. It gets tricky when the beneficiary is a non-spouse. Let’s look at your options if you are a non-spouse beneficiary of an IRA.

Your first option and my personal favorite is called the Stretch IRA which means you start taking the required distributions which are …

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Guidance on Qualified Charitable Contributions From Your IRA For 2012

In past tax years (through the end of 2011) there was a provision available that allowed taxpayers who were at least age 70½ years of age to make distributions from their IRAs directly to a qualified charity, bypassing the need to include the distribution as income.  The law allowed the taxpayer to use a distribution of this nature to satisfy Required Minimum Distributions (RMDs) where applicable.

This law expired at the end of 2011, but in years past Congress has acted very late in the year and retroactively reinstated this provision.  For more detail on how this provision (if not …

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Annual Gift Tax Exclusion Increases in 2013

All individuals have the opportunity to give gifts annually to any person without having to file a gift tax return.  For 2012, the amount of the annual exclusion is $13,000.

This means that anyone can give a gift of up to $13,000 to any person for any reason without worrying about possible gift tax implications.  A married couple can double this amount to $26,000.

In 2013, this annual exclusion amount will increase to $14,000 ($28,000 for couples).

For amounts given in excess of the annual exclusion amount, every individual has a lifetime exclusion amount, against which the excess gifts are …

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IRS Cracking Down On IRA Rules

It seems that some of the rules the IRS has put in place with regard to IRAs have not always been watched very closely – and the IRS is stepping up efforts to resolve some of this.  According to the article in the WSJ, IRA Rules Get Trickier, an estimated $286 million in penalties and fees were uncollected for 2006 and 2007 tax years’ missed distributions, over-contributions, and the like.

The title of the article is a bit misleading, because the rules are not changing or getting “trickier”, the IRS is just going to be paying closer attention to …

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