IRA’s Individual Retirement Accounts
Details Matter When Completing A Beneficiary Designation!
A recent federal case, originating in Florida, illustrates the importance of compliance with the EXACT requirements to designate a beneficiary for a 401(k) and ESOP plan. In Arlene Ruiz V. Publix Super Markets, Inc., a federal district court determined that an intent...
Can Your IRA Own A Business You Want To Operate?
A lot of wealth is in IRAs. Accordingly, many individuals who want to buy a business want to use those funds to buy the business. Unfortunately, the Internal Revenue Service (“IRS”) has strict regulations on what an IRA owner can and can not do with an IRA. When the...
Rollover is more than a dog trick! Watch out for limitations on the IRA Rollover.
Individual Retirement Accounts (“IRAs”) are accounts that many of us have to save for retirement. The Internal Revenue Service (“IRS”) provides favorable tax consequences while the accounts are held for retirement and the earnings on such funds grow tax free....
Transfer of IRA in Divorce…Pay Attention to Details or Transfer Will Be Taxable!
Unfortunately, even though a divorce settlement agreement (the “Agreement”) may be properly drafted, unless the parties to the Agreement comply with the terms of the Agreement, favorable tax consequences may not apply. In Kirkpatrick V. Commissioner, a divorced...
WIN-WIN PLAN FOR CHARITIES AND TAXPAYERS IN 2019
In 2019, the Tax Cuts and Jobs Act provides a new standard deduction which has doubled from $12,700 for a married couple in 2017 to $24,400 in 2019. Thus, most taxpayers will not itemize their deductions and will, instead take the standard deduction. As charitable...
U.S. Supreme Court to Decide Revocation on Divorce Statute Case- Impact on Florida?
In March, 2018, oral arguments were heard by the U.S. Supreme Court regarding the constitutionality of the Minnesota statute addressing the revocation of beneficiary designation upon divorce. The ultimate decision will affect the interpretation of the Florida statute...
SECURE ACT… Confusing Requirements for Required Minimum Distributions Clarified…
While everyone knows that the SECURE Act (the “Act:) has passed as discussed in a prior blog, there are some outstanding issues, one of which was the confusion surrounding the RMSs and the reporting requirements of the custodian. In Notice 2020-6, the Internal Revenue...
Same Sex Surviving Spouse Allowed to Pursue Pension Benefits
As most of you know, and, as I discussed in a prior blog, same sex marriage is now recognized for federal benefits. However, what happens when a same sex spouse claims benefits for a spouse who died prior to the decision of the favorable case? A recent case, Schuett...
Over 70 1/2 or Know Someone Who is? Help a Charity…
Generally distributions from traditional individual retirement accounts (“IRAs”) are subject to income tax. For example if you have a $100,000 IRA and take a $20,000 distribution you have to include that $20,000 on your Form 1040. Until 2014 individuals over 70 1/2...
BE AWARE OF UNKNOWN AGREEMENTS WITH YOUR IRA
IRA assets are protected from creditors and income taxes while the assets remain in the IRA. However, you need to be aware that transactions relating to your IRA may unintentionally create a taxable event. In the Department of Labor (“DOL”) Advisory Opinion Letter...