IRA Contributions

If you have made or plan to make IRA contributions, here are a few important things to remember:

Contribution Limit: up to $5,500 ($6,500 if age 50 or older).

Excess Contributions: be careful, there is a 6% penalty for excess IRA contributions that are assessed each year the excess remains in the IRA!

Deadline: the deadline for making 2016 contributions is April 18, 2017.

Age Limit: you can’t make contributions to a traditional IRA in the year you turn 70 ½ and later.

Deductibility: this varies by individual situation, consult with your personal retirement distribution expert if you have questions or need guidance.

Form 8606: if you make any non-deductible contributions to a traditional IRA, make sure you file IRS Form 8606 to help ensure you don’t get double taxed! Also, keep copies of any 8606 forms with your will and/or trust so your heirs will be able to determine your IRA basis.


More Updates


For trusts that inherited an IRA in 2019, an important deadline is approaching. The due date to provide required trust documentation to the IRA custodian to ensure that the longest payout period possible is available for the inherited IRA is October 31, 2020. Generally, only individuals who are named on an IRA beneficiary form can

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The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be

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Rolling Over an RMD

Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to

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