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Speaker, author, teacher, consultant: I teach/consult to financial, tax, and legal professionals about the tax laws that govern IRAs and employer plans
New: Please download the Booklet on the new RMD regulations here
IRA Quick Reference Guides- Booklet - Downloadable PDF Appleby’s IRA Quick Reference Guides provide summarized and simplified explanations of the rules that apply to IRAs and rollovers from employer plans, primarily in table format. This helps users to get information quickly and easily. While the guides do not provide detailed information, they address many of the most frequently asked questions, which allows the user to save time that would otherwise be spent on research. . The Quick reference Guide Booklet (PDF) is available for $99. But, you get is as part of your IRA consulting membership. Download here(click to download).
Table of Contents Contents General Disclaimer and Copyright a About the Author c What’s New for 2024 1 ∙ Quick Reference: Substantially Equally Periodic Payments/SEPP/72(t): Quick reference Guide 1 ∙ IRA Beneficiary Options: Eligible Designated Beneficiary & Designated Beneficiary under the SECURE Act, as explained by the proposed RMD regulations that were published on February 24, 2022. 1 ∙ IRS Notice 2023-53: IRS Waives Excise Tax for 2021 and 2022 RMDs for beneficiaries subject to the 10-year rule 2 ∙ SECURE Act 2.0 Made Changes to RMD Age and Other IRA and employer plan rules 2 Reminders- Recent Changes to IRA Rules and Regulations 3 Changes made by the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) 3 A Summary of the CARES Act’s Provisions for RMD Waivers, Coronavirus Related Distributions and Loans 5 IRS Form 1099-R and Form 5498 Changes 9 IRS Publishes New RMD Tables: These are effective 2022 and after 10 1. Summary of Operational Procedures for Setting Up Your IRA 12 How to set up your IRA 12 Your Right to Revoke Your IRA 14 Funding Your IRA 14 2. Checklist: Designating your beneficiary for your IRA 15 3. 2023 Limits for IRAs & Employer Plans 17 IRA and Salary Deferral Contribution limits if you are under age 50 as at year-end 2023 18 IRA and Salary Deferral Catch-up contribution if you are at least age 50 as at year-end 2023 18 2023 MAGI limits for deducting regular contributions to Traditional IRAs 19 2023 MAGI limits for making a regular contribution to a Roth IRA 20 2023 AGI limits for eligibility for saver’s credit: salary deferral and IRA/Roth IRA contributions 20 4. Traditional IRA Features and Benefits: Quick Reference Guide 21 5. Traditional IRA Funding Options: Quick Reference Guide 24 Regular Traditional IRA Contribution 24 Spousal Traditional IRA Contributions 25 Recharacterization of Contribution Made to Roth IRA 27 Deemed Traditional IRA Contribution 27 Payroll Deduction IRA 28 Employer-Sponsored IRA 28 Rollover from qualified plans [401(a) and 403(a)], 403(b) and governmental 457(b) plans [Not a Designated Roth Account (DRA)] 28 6. Traditional IRA Deductibility: Quick Reference Guide 31 Eligibility to deduct regular Traditional IRA Contribution 31 Determination of “Who Is an Active participant” in an Employer Sponsored Plan 33 7. Roth IRA Features and Benefits: Quick Reference Guide 35 8. Roth IRA Funding Options: Quick Reference Guide 37 Regular Roth IRA Contribution 37 Spousal Roth IRA Contributions 39 Recharacterization of Contribution Made to Traditional IRA 39 Deemed Roth IRA Contribution 40 Payroll Deduction IRA 40 Employer-Sponsored IRA 40 Conversion from Traditional IRA, SEP IRA and SIMPLE IRA 41 Retirement plan rollovers from qualified plans [401(a) and 403(a)], 403(b) and governmental 457(b) plans [non-Roth] 42 Designated Roth Accounts (DRA) [Roth 401(k), Roth 403(b) and Roth Governmental 457(b)] Rollovers 44 Military Death Gratuities and Service Members’ Group Life Insurance (SGLI) Payments 45 9. Roth IRA vs. Traditional IRA: Quick Reference Guide 46 Regular IRA Contribution Limits 46 Contribution eligibility 46 Deadline| Regular IRA Contribution 47 Eligibility to deduct contributions 47 Age Limitation 49 Saver’s Credit 49 Treatment of earnings 49 Distributions | Optional Vs. Required 50 10. Saver’s Credit: Quick Reference Guide 51 Eligibility Requirements 51 Eligible Contributions 51 Credit Amount 52 Reduction of Eligible Contributions 53 11. Checklist for Your Regular Traditional and Roth IRA Contribution 54 12. The Transfer/Rollover Lingo: Recommend when communicating with financial institutions and plan trustees 57 13. Rollover and Transfer Permissibility: Quick Reference Guide 60 Summary of rollover/transfer permitted between different type of accounts 61 Rollover and Transfer Limitations for IRAs and Employer Sponsored Plans: Quick Reference 63 14. Rollover and Transfer Rules for Nonspouse Beneficiaries: Quick Reference 69 15. Early Distribution Penalty Exceptions: Quick Reference Guide 72 Exceptions to the 10% Early Distribution Penalty ‘by Type of Account’ 72 16. Quick Reference: Substantially Equally Periodic Payments/SEPP/72(t): Quick reference Guide 75 SEPP Guidance 79 17. Roth IRA Distribution: Tax and Penalty Treatment: Quick Reference 82 Quick Reference # 1: Amounts Subject Income Tax and/or the 10% Penalty 82 18. Tax and Penalty Determination on Nonqualified Distribution from a Roth IRAs: Quick Reference 85 19. Required Minimum Distributions 87 Accounts Subject to RMDs 87 RMD Start Dates for Various Birthdates and Ages 87 RMD Deadlines for Account Owners 88 RMDs and Portability: Summary 90 RMD Aggregation Rules 91 RMD Related Definitions 93 IRA RMD Calculation Formula 95 Uniform Lifetime Table: Effective 2022 and After 96 20. IRA Beneficiary Distribution Options: When the IRA Owner Died on or before December 31, 2019 97 Traditional IRA Beneficiary Distribution Options 97 When the IRA Owner Dies before the Required Beginning Date (RBD) 98 When the IRA Owner Died on or after the Required Beginning Date (RBD) 99 Roth IRAs: Beneficiary Distribution Options 100 21. IRA Beneficiary Distribution Options: When the IRA Owner Dies After December 31, 2019 101 New 10-Year Rule for Designated Beneficiaries 101 10-Year Rule for eligible Designated Beneficiaries 102 When the IRA owner Dies before 2020 and the beneficiary dies after 2019 102 IRA Beneficiary Options: under the SECURE Act 102 Beneficiary is an Eligible Designated Beneficiary: Spouse. The options are: - 102 If the IRA owner died before the RBD, the options are 102 If the IRA owner died on/after the RBD, the options are (N/A For Roth IRA) 102 A. Own account: Treat as own IRA or rollover to own IRA/other eligible retirement account 102 A. Own account: Treat as own IRA or rollover to own IRA/other eligible retirement account 102 Please note: Taking a distribution of the entire IRA balance at any time is always an option. 103 Beneficiary is an Eligible Designated Beneficiary: Nonspouse. The options are: 104 If the IRA owner died before the RBD, the options are 104 If the IRA owner died on/after the RBD, the options are (N/A For Roth IRA) 104 A. Beneficiary IRA: Life expectancy rule Distributions over the beneficiary’s nonrecalculated life expectancy, beginning 12/31 of the year that follows the year in which the IRA owner died. 104 If beneficiary is a minor child of the IRA owner, then the inherited IRA must be fully distributed by the end of the 10th year after the year in which the child reaches age 21 or dies, whichever is earlier. 104 If beneficiary is a minor child of the IRA owner, then the inherited IRA must be fully distributed by the end of the 10th year after the year in which the child reaches age 21 or dies, whichever is earlier 104 B. Beneficiary IRA: Simple 10-year rule 104 Please note: Taking a distribution of the entire IRA balance at any time is always an option. 104 Beneficiary is a Designated Beneficiary who is not an Eligible Designated Beneficiary. The options are: - 105 If the IRA owner died before the RBD, the options are 105 If the IRA owner died on/after the RBD, the options are (N/A For Roth IRA) 105 Beneficiary IRA: Simple 10-year rule 105 Beneficiary IRA: Simple 5-year rule. 105 Successor Beneficiary Options 106 Notes for Quick Reference Guides for Beneficiary Distributions 108 22. Qualified Charitable Distributions 111 General Rules and Requirements for Qualified Charitable Distributions 111 QCD and RMDs 113 QCDs and Basis Amounts 115 QCDs and Deductible Traditional IRA Contributions: No Double Dipping for Tax-Free 117 23. Tax Reporting Forms and Requirements for IRAs 119 IRS Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., 119 IRS Form 5498, IRA Contribution Information 120 IRS Form 990-T, Exempt Organization Business Income Tax Return 120 IRS Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding 120 Form W-8CE, Notice of Expatriation and Waiver of Treaty Benefits 121 IRS Form 8606, Nondeductible IRAs 121 IRS Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 122 IRS Form 8880, Credit for Qualified Retirement Savings Contributions 122 Appendix A. Life Expectancy Tables: Effective 2022 and After A Single Life Expectancy-For Use by Beneficiaries: Effective for 2022 and after A Uniform Lifetime Table: For use by Unmarried Owners, Married Owners Whose Spouses Are Not More Than 10 Years Younger, and Married Owners Whose Spouses Are Not the Sole Beneficiaries of Their IRAs): Effective for 2022 and after D Appendix B: IRS’ Guide to Distribution Codes for IRS Form 1099-R, as provided to IRA Custodians/Trustees by the IRS. E Table 1. Guide to Distribution Codes E Appendix C: Transactions Reported on IRS Forms 1099-R and 5498 K Recommended IRA Resources L SIMPLE, SEP, and SARSEP Answer Book M Roth IRA Answer Book M
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