Withdrawals from a retirement plan can either be classified as qualified or non-qualified. A qualified distribution is when you make a withdrawal after meeting all of the IRS criteria for a distribution. A non-qualified distribution is when you make a withdrawal without meeting the IRS criteria. There’s also a required minimum distribution (RMD), which requires […]
Most retirement plans have a required minimum distribution (also known as an RMD), which states that once you turn 73 years old, you’re required to start taking distributions from your retirement account. The minimum required amount that you need to withdraw is calculated by taking your account balance as of December 31, last year, and dividing […]
Most individual retirement accounts (IRA) require that you start taking distributions from your account once you reach the age of 73. If you don’t, you’re hit with steep penalties each year you fail to take your RMD. The Roth IRA is the only exception. You don’t have to take any distributions from your account as long […]
If you’re enrolled in a 401k plan with your employer, you’re likely already using recurring contributions and automated investing. Part of your paycheck gets deposited into your 401k plan and automatically invested into your portfolio of mutual funds. Your retirement savings grow on autopilot without you having to remember to deposit money into your plan […]
Cash balance plans have straightforward deadlines to follow. The deadline for opening your plan and making contributions is the same, due on the date your business taxes are due (including deadlines). Partnerships and S corporations who follow the calendar year are required to make their contribution in full by March 15, 2024 for the 2023 […]
Cash balance plans are a type of defined benefit plan, different from defined contribution plans, and have no fixed annual contribution limits. Rather than the contribution limit being defined, the end balance or how much you would have in your account by retirement age, is predetermined. How much you can contribute to the account on […]
You may already be aware of defined contribution plans like the 401k, IRA, and solo 401k. Defined contribution plans have their contribution limits defined each year. The IRS states the maximum amount you can put in and once you reach the limits, you cannot contribute anything else. Defined benefit plans (also known as pension plans […]
If you make mid to high six-figures per year, the contribution limits of a 401k or solo 401k might not be enough of a tax deduction. That’s where a cash balance plan can help. While they can be more complex to set up and maintain, the size of benefits are unmatched by defined contribution plans […]
If you need more time to file your federal taxes, a tax extension can give you an additional six months to file. However, a tax extension only gives you more time to file your taxes, not more time to pay your taxes. While you get additional time to file, the IRS still expects you to […]
