Tag Archives: Retirement

What is my Refund?

Today TaxMama hears from Alex in the TaxQuips Forum who is confused. “I’m wondering what my refund would be if I claimed exempt status for about half of 2011.I’m a full-time student, filing as single, with a gross income of about $10,000. I tried doing some of my taxes on TurboTax, but it said my […]

IRS Announces Pension Plan Limitations for 2012

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 2012. In general, many of the pension plan limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other […]

RMD – Minimum Distribution Problem

Today TaxMama hears from Anthony in the TaxQuips Forum with a common problem. “I have a client who stopped working at 81 because he had a stroke and had to go into a nursing home. He had a Sec. 457 plan, which allowed him to put off taking distributions until he terminated employment. But he was […]

Tax on Canadian Pension

Today TaxMama hears from Susan in the TaxQuips Forum, who is perplexed. “My husband started receiving a Canadian pension this year. There was $115 non-resident tax paid on the pension.  Canadian tax officials tell me that it can be claimed as a foreign tax credit.  I have no idea how to do this.  Do I […]

Insolvency and COD

Today TaxMama hears from Katherine in the TaxQuips Forum, who gets it. “I settled a debt today and am doing a list of assets and liabilities. My question is about assets “Interest in a pension plan.” My husband has been receiving an annuity retirement check for about 20 years. How would we know the value […]

QDROs

Today TaxMama hears from Mona in the TaxQuips Forum with this problem. “I recently started to receive a QDRO check from another state.  How do the income taxes get handled? Do I pay the issuing state or the state I live in?”  http://taxmama.wpengine.com/forum/taxquips/qdro-taxes/

IRA on Rental Income

Today TaxMama hears from Bill in the TaxQuips Forum with a common misconception. “I have a W-2 through my employer and contribute to their 401k plan. I also have $30,000 net rental income from Schedule E as a sole proprietorship. Can I contribute to a SEP or any other type of retirement plan to shelter […]

Solo 401k Contribution

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.”

IRA for Home

Today TaxMama hears from Matthew in California who begs leave…  “I withdrew money from my IRA for a first time home purchase.  The amount was over $10,000, the lifetime maximum. Can any of the portion over the $10k mark be attached to my wife’s name?  In effect, could we get a $20K early withdrawal penalty exemption […]

Cashing Out Retirement

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 […]

IRS Issues Guidance on 2009 Required Minimum Distribution Waiver

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 […]