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IRA distribution

Exceptions to the Pro-Rata Rule for IRA Distributions

Have you ever made non-deductible IRA contributions? Or, rolled over after-tax funds from your company plan to your IRA? If so, you will want to know about the pro-rata rule. The pro-rata rule is a rule that almost always determines the taxation of an IRA distribution when the IRA owner has any IRA containing after-tax amounts. However, some IRA distributions are not subject to the pro-rata rule. These exceptions may provide an opportunity for you to lower the tax bill that comes with an IRA distribution or conversion.

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You Are Never Too Old to Convert

There is a lot of information out there about how converting to a Roth IRA is a great move for younger people. This is no surprise. A younger person who converts may pay taxes on a smaller IRA balance and have years to accrue tax-free earnings in their Roth IRA. But what about older people? Older individuals should not overlook the potential tax benefits of converting later in life.

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Can My Sister Take the Inherited IRA RMD For Both of Us?

This week's Slott Report Mailbag answers a popular required minimum distribution (RMDs) question - can my sister take the inherited IRA RMD for both of us? - and another consumer's inquiry on Roth conversion tax reporting.

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Want to Fund Your HSA with Your IRA? Here's How

Did you know that you can use your IRA to fund your Health Savings Account (HSA)? You may be able to take advantage of a little known part of the tax code that allows a transaction called a Qualified HSA Funding Distribution (QHFD). Here's how.

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Think You Are Debt Free If You Own an IRA, 401(k), or 403(b)? Think Again

While reasonably basic to an IRA specialist, the 9 ideas below are often overlooked by consumers and many financial practitioners alike who do not specialize in IRAs. Used appropriately, they may often help individuals and families preserve their retirement wealth. Perhaps they can help you too. Consider researching in more depth on your own, or perhaps broach any of the topics you feel may apply to you in more detail with your financial consultant(s).

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What is Escheatment and How Does it Affect Your Retirement Accounts?

How is it determined that an IRA has no owner? This will depend on both state law and the procedures in place at the institution holding your IRA or employer plan assets. If you have an IRA or an old employer plan where you are no longer making contributions, then there are no transactions taking place within the account. This could leave the account open to escheatment.

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Think Twice Before Using Your IRA For Quick Cash

If you or a family member encounter financial trouble, you may think that your IRA is a good resource to get you through the crisis. Be careful! While some company plans allow for loans, loans are not allowed from an IRA. To get around this rule, some taxpayers take IRA distributions to get quick cash and figure they will have resources to roll over the distributed amount within 60 days. This can be a dangerous plan as one IRA owner found out in a recent Private Letter Ruling (PLR).

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5 Things You Can Do With An IRA That You Can’t With a 401(k)

IRAs and 401(k)s share a lot of similarities. They are both retirement plans. They both can help you lower your tax bill today, provide tax-deferred growth and help provide an income source in retirement. That said, there are also many differences between IRAs and 401(k)s. Some are relatively benign and probably won’t impact you very much, but other differences can make one type of account far superior to the other in your particular situation. With that in mind, today, we explore 5 things you can do with an IRA that you can’t with a 401(k).

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Withholding and Your IRA - What You Need to Know

When you take a distribution from your traditional IRA, you will owe taxes in most cases. Uncle Sam wants to be sure those taxes are paid. The good news, however, is that there is a lot of flexibility when it comes to withholding on your IRA distribution. Here is what you need to know.

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IRA Tax Reporting: The Two Types and Key Forms

There are two types of tax reporting for IRA accounts: the reporting that is mandatory for IRA custodians and the subsequent reporting that must be done by the IRA owner or beneficiary. Here's what you need to know about each.

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