IRA Rules

Posts Tagged ‘retirement’

Question: when am I allowed to roll a traditional IRA over into an existing 401k ?

what are the rules that would allow this?

Answer: It must be pre-tax.
Can not be inherited IRA
You must sell all your stocks and funds
Please talk to your HR person.
I personally do not see any advantage in doing this.
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401(k) IRA Nationalization *** Quietly Moves Forward

Question: what does this mean?

What many people don’t realize is that once they reach 70, the decision to withdraw funds is no longer discretionary. A tax rule mandates you to take out a specified amount annually — known as a Required Minimum Distribution (RMD) — by Apr. 1 in the year after you turn 70. This sum is based on a Life Expectancy formula for you and a spouse who’s your beneficiary, and you must pay income tax on it. Failure to withdraw will get you a penalty of 50% of the amount you were supposed to have taken out. (There is no RMD for withdrawals from a Roth IRA, because your contributions to the account have already been taxed.)

Answer: This means your tax deferred retirement fund is used to provide iincome during retirement and not a way to leave more money for your heirs. You have to remove the money from your IRA and pay tax on it during your expeced life. You don’t have to spend the money if you don’t want to.

Why PGI SelfDirected vs. All the Other Guys