Reminder: Important Changes in 2015

Here are just a few important changes that went into effect beginning January 1, 2015:

Healthcare Penalty:
Under the Affordable Healthcare Act, the penalty for not having health insurance in 2015 has significantly increased to $325 per adult (or 2% of income, if greater) in 2015.

IRA Rollover Rule:
As of January 1st, non-taxable 60 day rollovers for IRAs have been limited to one per year regardless of the number of IRAs you may have.

Investment Rule for 529 Plans:
Effective as of the 2015 tax year, the Tax Increase Prevention Act of 2014 allows Code Sec. 529 qualified tuition plans to permit investment direction by an account contributor or designated beneficiary up to two times per year.

Single Distribution Rule:
When qualified plan participants choose to direct their retirement plan distribution to go to multiple destinations, as of January 1, 2015, the amounts will be treated as a single distribution for allocating pre-tax and after-tax basis. Previously, if such a distribution were split, each destination of that retirement plan distribution was considered a separate distribution.

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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