Category - IRAs

1
IRS Cracking Down On IRA Rules
2
RMDs Don’t Have To Be Taken In Cash
3
What Is Net Unrealized Appreciation?
4
A Must Read Before You Set-up A Self-Directed IRA
5
Here’s How You Can Get Tax-Free Income From a Roth IRA Conversion

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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RMDs Don’t Have To Be Taken In Cash

But…

It’s a little-known fact that distributions from an IRA  or a Qualified Retirement Plan can be taken in kind, rather than in cash.  You can in any circumstance take distribution from the account of stocks, bonds, or any investment that you own, just the same as if it were cash.

The downside to this is determining valuation for the distribution.  You could value the distribution on the day of the distribution by opening price, closing price, average price, or mean between the day’s high and low prices.  Where you really get into trouble is when the security that you …

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What Is Net Unrealized Appreciation?

We’ve discussed how to utilize the Net Unrealized Appreciation (NUA) treatment of distributions from your qualified retirement plan (also known as QRP, meaning 401(k), 403(b), and other plans) – one of the earlier articles on Net Unrealized Appreciation can be found at this link.

Even though the process is explained in the earlier article, we didn’t discuss just what exactly can be treated with the NUA option.  How do you determine what part of the distribution can be treated with capital gains treatment?

In order to determine what is to be treated as unrealized appreciation, we need to define …

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A Must Read Before You Set-up A Self-Directed IRA

With the market fluctuations of late, investors are growing increasingly concerned and tired of watching their portfolio holdings lose value by the day. This is causing a lot of buzz in the area of Self‐Directed IRAs. Investors feel that by having more control over their investment options, they will see their investments grow rather than dwindle.

What is a Self‐Directed IRA?

Self‐Directed IRAs are retirement accounts in which you, the investor, decide what types of assets to hold. Traditional, Roth and SEP IRAs as well as 401k plans have the ability to have self directed status. In traditional accounts of …

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Here’s How You Can Get Tax-Free Income From a Roth IRA Conversion

If you’re in a relatively low tax bracket and have funds in a traditional IRA or Qualified Retirement Plan, chances are you might be in a position to set yourself up with tax-free income via a Roth Conversion.  One method that can work in your favor is the “fill up the bracket” technique, and if you want to do this for 2011, you’re running out of time, it must be done by December 30 (December 31 is a Saturday).

The way this works is that you determine what your regular income is, and then look at where you are with …

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