IRAs, 401(k)s & Other Retirement Plans: Taking Your Money Out

by Slesnick, Twila

• ISBN13: 9781413310313
• ISBN10: 1413310311
• Edition: 9th
• Format: Paperback
• Copyright: 2009-07-10
• Publisher: Ingram Pub Services

Summary

IRAs, 401(k)s Other Retirement Plans can help the millions of Americans who are approaching retirement, retiring early, changing jobs, wondering how to handle an inherited plan or borrowing money from a retirement plan - at any age - whether to purchase a house or survive the current economic crisis. The book covers when to take money out; tax strategies before and at retirement age; penalties for drawing money out early how to reduce or avoid them; distribution to heirs; and much more. The 9th edition incorporates changes from the Pension Protection Act of 2006, discusses new rules for taking money out of Roth IRA 401(k) plans.

Author Biography

Twila Slesnick is an Enrolled Agent who specializes in tax and investment planning for retirees and prospective retirees, and does pension plan consulting for individuals and small businesses. She has been featured on television and radio programs across the country and in publications including Money Magazine, U.S. News & World Report, Newsweek and Consumer Reports. She lives in Dublin, CA. John Suttle has been practicing law for nearly twenty years. His practice consists of estate and trust planning; probate administration; federal, state and local tax counseling for high net worth individuals and retirement planning. He lives in Atherton, CA.

Table of Contents

Your Retirement Companion
Types of Retirement Plans
Qualified Plans	p. 6
Individual Retirement Accounts	p. 12
Almost-Qualified Plans	p. 15
Nonqualified Plans	p. 16
An Overview of Tax Rules
Taxation Fundamentals	p. 21
General Income Tax Rules for Retirement Plans	p. 26
Income Tax on Qualified Plans and Qualified Annuities	p. 30
Special Income Tax Rules for Tax-Deferred Annuities	p. 52
Special Income Tax Rules for IRAs	p. 53
How Penalties Can Guide Planning	p. 57
Early Distributions: Taking Your Money Out Before the Law Allows
Exceptions to the Early Distribution Tax	p. 62
Calculating the Tax	p. 68
Reporting the Tax	p. 69
Special Rules for IRAs	p. 75
Substantially Equal Periodic Payments
Computing Periodic Payments	p. 84
Implementing and Reporting Your Decision	p. 92
Modifying the Payments	p. 94
Required Distributions: Taking Money Out When You Have To
Required Distributions During Your Lifetime	p. 101
Death Before Required Beginning Date	p. 102
Death After Required Beginning Date	p. 103
Special Rules for Tax-Deferred Annuities	p. 104
Special Rules for Roth IRAs	p. 105
Penalty	p. 106
Reporting the Penalty	p. 110
Waiver	p. 111
Required Distributions During Your Lifetime
Required Beginning Date	p. 117
Computing the Required Amount	p. 120
Designating a Beneficiary	p. 125
Special Rules for Annuities	p. 128
Divorce or Separation	p. 131
Distributions to Your Beneficiary If You Die Before Age 70 1/2
Determining the Designated Beneficiary	p. 139
Distribution Methods	p. 141
Spouse Beneficiary	p. 144
Nonspouse Beneficiary	p. 150
No Designated Beneficiary	p. 154
Multiple Beneficiaries, Separate Accounts	p. 155
Multiple Beneficiaries, One Account	p. 155
Trust Beneficiary	p. 161
Estate as Beneficiary	p. 164
Annuities	p. 165
Divorce or Separation	p. 166
Reporting Distributions From IRAs	p. 167
Distributions to Your Beneficiary If You Die After Age 70 1/2
Administrative Details	p. 171
Spouse Beneficiary	p. 173
Nonspouse Beneficiary	p. 180
No Designated Beneficiary	p. 183
Multiple Beneficiaries, Separate Accounts	p. 183
Multiple Beneficiaries, One Account	p. 183
Trust Beneficiary	p. 187
Estate as Beneficiary	p. 189
Annuities	p. 190
Divorce or Separation	p. 190
Roth IRAs
Taxation of Distributions	p. 196
Early Distribution Tax	p. 205
Ordering of Distributions	p. 207
Required Distributions	p. 209
Roth 401(k) Plans
Taxation of Distributions	p. 212
Early Distribution Tax	p. 216
Ordering of Distributions	p. 217
Required Distributions	p. 217
Appendixes
IRS Forms, Notices, and Schedules
Form 4972, Tax on Lump-Sum Distributions	p. 220
Tax Rate Schedule for 1986	p. 224
Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts	p. 225
Form 5330, Return of Excise Taxes Related to Employee Benefit Plans	p. 233
Form 5498, IRA Contribution Information	p. 252
Form 8606, Nondeductible IRAs	p. 253
Revenue Ruling 2002-62	p. 264
Life Expectancy Tables
Single Life Expectancy	p. 272
Joint Life and Last Survivor Expectancy	p. 273
Uniform Lifetime Table	p. 291
Survivor Benefit Limits	p. 292
Index
Table of Contents provided by Ingram. All Rights Reserved.