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 In This Update:
  • Q of the Month:
    Can I Have a SEP IRA and SIMPLE IRA For Employees?
  • Key Focus:
    Holiday Wish List of Tax Code Changes
  • The Slott Report's Top 10 Articles of 2012




?? Question of the Month: Can I Have a SEP IRA and SIMPLE IRA For Employees?

Q: Can an employer offer both a SIMPLE IRA plan and a SEP IRA to his/her employees?

A: An employer that has a SIMPLE IRA plan cannot maintain another qualified plan, such as a SEP, in which any employees receive contributions. An employee, however, who works for two different employers in the same year could be covered by a SEP IRA from one employer and a SIMPLE IRA plan from the other employer.

CLICK HERE to view other questions and answers from The Slott Report Mailbag.



Stop Hurricane Sandy's Destruction

The December issue of Ed Slott's IRA Advisor Newsletter talks about the massive financial destruction left in the wake of Hurricane Sandy, and the pitfalls some may fall into if they use their retirement accounts to pay for any cleanup or rebuilding efforts.

This issue of the newsletter goes through the talking points and detailed analysis you should use if one of your clients has been financially impacted by Hurricane Sandy.

Also, in this issue, guest IRA expert Seymour Goldberg provides an IRA legal update, our editorial team lays out a 2012 index of articles, and we acknowledge those who take the time each month to provide the nation's leading IRA newsletter.


Inside Ed Slott's IRA Advisor Newsletter

Stop Hurricane Sandy From Causing Even More Damage

  • "Hardship" is Still Not an Exception to the 10% Penalty
  • Natural Disasters are Not an Automatic Exception to the 10% Penalty
  • Looking to Non-Qualified Assets to Raise Funds Tax Efficiently
  • Consider Plan Loans
  • Avoid 60-Day Rollover Mistakes
  • Roth IRAs, a Last Resort

Guest IRA Expert
Seymore Goldberg, CPA, MBA, JD
Goldberg & Goldberg, P.C.
Woodbury, NY

IRA Legal Update

2012 Index of Articles

2012 IRA Experts


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December Key Focus

Holiday Wish List of Tax Code Changes

The holiday season is upon us once again. There are a lot of things we associate with this time of year, but one of the most common has to be exchanging gifts with those we love. We can remember, as children, writing out our wish list each year and the excitement we'd have wondering which gifts we might actually receive. Recalling those days, we thought we would once again prepare a wish list, but with a little twist. Below you will find our holiday wish list to Congress and the IRS for changes we would like to see made to the tax code.

#1 - Get rid of the importance of birthdays
is generally the age at which you can take penalty-free distributions from your IRA. This is a "hard date," meaning that you must actually be age 59 on the date you take a distribution in order for it to be penalty free. In addition to age 59 , there is also age 70 , which is the age you are when you must begin taking required minimum distributions (RMDs) from your IRA accounts. Unlike the age 59 rule, the age 70 rule applies to the whole year you turn 70 , so the first money distributed from your IRA in that year is automatically deemed to be your RMD and is not eligible for a rollover. Seriously folks, is this really necessary? Aren't the IRA rules and the Tax Code complicated enough without adding in the unnecessary complication of years? What is so terrible about nice, easy-to-understand numbers like 60 and 70 that we had to use the oddball date markers?

#2 - Add a penalty exception for extreme financial hardship
We are not fans of accessing IRA money before retirement. After all, that's what the account is supposed to be for, right? But sometimes, people run into tough times that necessitate they dip into their savings unexpectedly. If you withdraw any of your IRA funds before age 59 , you are generally subject to income tax and a 10% additional penalty for an early distribution. Unfortunately, that often means that even when people are in the direst of situations, and when every last cent counts, they are hit with a significant penalty merely because they haven't met some arbitrary age designated by lawmakers decades ago. We believe most people should do a better job of saving for their golden years, but we also understand that sometimes "life happens." We think the tax code should understand that too.

CLICK HERE to read the entire holiday wish list. This article appeared at The Slott Report (
on Wednesday, November 28.

Top 10 Articles of 2012

The end of each year makes us look ahead to the future through the tradition of resolutions, but weight-loss pledges nothwithstanding, it also affords us the opportunity to look back at the year just past.

2012 brought plenty of pivotal retirement, tax and IRA planning news, and we dissected what it meant for financial professionals and consumers each day at The Slott Report ( Congressional stalemates, election consequences, tax planning strategies, IRS releases and more were analyzed with the tunnel vision to helping the retirement planning community better understand our complicated tax code.

Some stories gained major traction and were read, commented on, shared, re-tweeted and emailed to friends, family, colleagues and financial professionals. Below is a list of The Slott Report's top 10 articles (based on page views) of 2012. Each article is hyperlinked to its landing page, so you can re-read (or comb through for the first time) some of the major news of 2012.

We look forward to another landmark year in 2013, as we strive to provide the best retirement, tax and IRA planning information and analysis on the worldwide web.

Season's Greetings!

  1. 10 Ways You Might Pay More Tax in 2013
  2. New Unrealized Appreciation (NUA): The Big Income Tax Advantage
  3. Paying the Tuition Bill with Retirement Assets
  4. IRS Announces 2013 Pension Plan, IRA Limitations
  5. Minor Beneficiaries Q&A
  6. One IRA Rollover Per Account Per Year
  7. The Younger, The Richer: Start Saving Early with Roth IRA
  8. Inherited IRAs are NOT Tax-Free Inheritances
  9. Planning NOW: 3 Questions to Ask Before Year-End
  10. The Additional 0.9% Medicare Tax: The Tax No One Talks About