401K

2010 401k Rollover

February 22, 2012

Today TaxMama® hears from Tom in the TaxQuips Forum with this issue. “I rolled over a 401k directly to a Roth IRA in 2010. I received a 1099 for this, but did not fill out an 8606 when I submitted my 2010 return. The plan was to report half of the taxable amount in 2011 and [...]

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IRS Announces Pension Plan Limitations for 2011

October 29, 2010

WASHINGTON — The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2011. In general, these limits will either remain unchanged, or the inflation adjustments for 2011 will be small. Highlights include: Share this:

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Top Ten Facts about Taking Early Distributions from Retirement Plans

February 19, 2010

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Courtesy of IRS Some taxpayers may have needed to take an early distribution from their retirement plan last year. The IRS wants individuals who took an early distribution to know that there can be a tax impact to tapping your retirement fund. Here are ten facts about early distributions. Share this:

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Solo 401k Contribution

February 16, 2010

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Today TaxMama hears from Dabeler in the TaxQuips Forum, with this question. “2009 is my first year as a sole proprietor. I set up a solo 401K in Dec 2009. I made $185,000 on my 1099. Can I put in the full $54,500 for 2009? I am over 50.” Share this:

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Bad Roth IRA Advice

January 12, 2010

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Today TaxMama hears from Carla in Indiana, who is concerned. “I have a client who took $105,000 from his 401(k) and rolled it over into a ROTH IRA because his investment advisor said that you only include the income you made that year. My research says to include the whole $105,000 as income.” Share this:

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Cashing Out Retirement

October 27, 2009

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Today TaxMama hears from Jessie in California, who’s broke. “ I am 22 years old and unemployed. I recently hit a financial snag and am really considering cashing out my 401(k) plans. In total it would amount to $4,995.85. Because of state and federal taxes as well as the fee for cashing out early, how [...]

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IRS Issues Guidance on 2009 Required Minimum Distribution Waiver

September 25, 2009

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WASHINGTON ― The Internal Revenue Service today provided guidance for retirement plan administrators, plan participants and retirees regarding recent legislation affecting required minimum distributions. The Worker, Retiree, and Employer Recovery Act of 2008 waives required minimum distributions for 2009 from certain retirement plans. Generally, a required minimum distribution is the smallest annual amount that must [...]

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Unemployed and Drew 401K

June 16, 2009

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[TaxMama note to employers: Times are tough and you may have no choice but to lay off employees. Before you do, see what you can do to help them avoid problems like these. It might mean keeping them on payroll for a little while longer while they seek a new loan. It might even mean [...]

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Owe my Soul To The IRS

May 11, 2009

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Today TaxMama hears from Debra in Georgia with these problems. “I had almost no income in 2007 from losing my job. I had to live on withdrawals from my 401k. Due to the penalties I am still paying this debt to the IRS. My home was also foreclosed on in the same year. Could I [...]

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Adding to 401K

April 7, 2009

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Today TaxMama hears from Joe in Texas with this question. “Is it legal to add to your 401K after you retire and you are not working? Suppose you earn money at post retirement employment?” Share this:

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