"Schwab has asked clients to reset their login credentials, a request coming shortly after Fidelity took similar action to limit third-party vendor access to 401(k) and other customer accounts. Like Fidelity, Schwab has cited protecting client data in their attempts to limit credential sharing of a client's username and password. Third party fintech firms such as Pontera have adopted credential-sharing technology to connect selected outside advisors with held-away assets such as 401(k) accounts from retirement plan providers." MORE >>
"Here are five situations where it may be better NOT to name the spouse directly as the IRA beneficiary. [1] Sufficient assets.... [2] Vulnerable beneficiaries.... [3] Remarriage concerns ... [4] Blended families ... [5] Special needs beneficiaries." MORE >>
"Reasons to roll over ... [1] Your plan has high-cost investments.... [2] You have a trail of 401(k) accounts.... [3] You need more bond funds.... [4] You want flexibility for withdrawals.... Stick with the 401(k)? ... [1] You plan to retire early…or late.... [2] You want to invest in a Roth IRA, but you earn too much to contribute.... [3] You worry about the loss of Net Unrealized Appreciation (NUA).... [4] You're worried about lawsuits." MORE >>
72 pages; Nov. 3, 2025. "Reminders: [1] Excise tax relief for certain 2024 required minimum distributions (RMDs).... [2] Income on corrective distributions of excess contributions.... [3] Modification of required distribution rules for designated beneficiaries.... [4] Simplified employee pension (SEP) and SIMPLE plans.... [5] Deemed IRAs.... [6] Statement of required minimum distribution (RMD).... [7] IRA interest.... [8] Net Investment Income Tax (NIIT). " MORE >>
"[T]he key point is that the INDB Strategy can potentially extend the distribution period by up to 50%, giving heirs more time and flexibility in managing cash flow and taxes. And because the strategy's success depends on understanding the IRS timing and rule constraints, financial advisors can play a critical role in both determining when it's appropriate and helping clients implement it effectively!" MORE >>
"The fact that some of the people are not related to John does not disqualify them from being an EDB. Yes, the 'random guy on the train' would be an EDB on John's IRA simply because he is not more than 10 years younger than John. Being older qualifies. That's why John's father and his mailman are also EDBs." MORE >>
"The [IRS] has provided reporting relief from the requirement to include a code 'Y' on a 2025 Form 1099-R when reporting qualified charitable distributions from an IRA." MORE >>
"If you're newly married or planning to tie the knot, it's important to understand how your IRA and 401(k) accounts are affected. From changes in contribution limits and tax-filing status to updating beneficiaries, this guide explains what every couple needs to know to avoid costly mistakes and make the most of their retirement savings." MORE >>
"[A] trust should not be named as beneficiary of an IRA unless there is a legitimate reason to do so.... [1] Minor as Beneficiary.... [2] IRA beneficiary is someone who may need help with managing the IRA funds and taking required distributions, even if the beneficiary is an adult.... [3] Creditor protection.... [4] Control.... [5] Second marriages." MORE >>
"States differ in their treatment of 529-to-Roth IRA rollovers.... Most states with state income taxes have said they will follow federal law.... 7 states (and the District of Columbia) have indicated that 529 savers may be subject to state income tax 'recapture' if 529 funds are transferred to Roth IRAs.... California stands alone.Its residents who do a 529-to-IRA rollover will be subject to both state income tax and an additional 2.5% California tax on earnings." MORE >>
"Presently, it is not clear whether a change in 529 beneficiary triggers a new 15-year clock in the case of a 529-to-Roth IRA transfer.... For now, the most conservative course of action is to execute a 529-to-Roth IRA transfer only where the 529 plan and beneficiary have been in place for at least 15 years." MORE >>
"[In] most cases, no IRA funds will need to be turned over to creditors if you file for bankruptcy. However, there is one important exception to that rule. If your IRA loses its tax-exempt status, bankruptcy protection for that IRA disappears. When would this happen? The most common way is when a person in bankruptcy commits a 'prohibited transaction' with his IRA dollars." MORE >>
"A recent IRS private letter ruling (PLR) highlights the importance of reviewing Form 5498 ... Carla got married and submitted a request to her IRA custodian to change the registration on her Roth IRA to reflect her married name. When her IRA custodian processed her request, they accidentally removed the Roth label from the title but treated it as a Roth IRA in all other aspects.That one missing word created years of confusion, as whenever Carla checked her account statement, she assumed that it was a traditional IRA." MORE >>
"The information on Form 5498 is submitted to the IRS by the trustee or issuer of your individual retirement arrangement (IRA) to report contributions, including any catch-up contributions, rollovers, repayments, required minimum distributions (RMDs), and the fair market value (FMV) of the account." MORE >>
"[A]ctively trading in a retirement account comes with different considerations than trading in a general account, and it's important for investors to ensure the moves they make today aren't likely to risk putting their retirement income in jeopardy. If a trader decides to trade individual stocks or options within their retirement account, there are a few considerations to keep in mind." MORE >>
"Certain options strategies are allowed in traditional and Roth IRAs as long as the account is approved for options trading by the financial institution that holds the retirement account. These strategies may be used to enhance income or manage downside risk without violating IRS rules. Riskier options positions -- such as naked calls or short puts -- are generally not allowed because those strategies have the potential for unlimited losses to the retirement account." MORE >>
"Agency guidance is needed to answer ... [1] How employers can substantiate that employees or their dependents are eligible to receive contributions for the year, and that the receiving account is indeed a Trump Account. [2] Whether employers have any obligation to confirm the employer contribution won't cause the receiving account to exceed the annual contribution limit when made. [3] Methods for performing nondiscrimination testing and correcting testing failures. [4] Whether employers are permitted to recoup erroneous contributions and how to do so." MORE >>
"1) Invest enough in a 401(k)/other company retirement plan to earn matching contributions.... [2] Invest in an IRA.... [2a] Invest in a spousal IRA.... [3] Invest in your company retirement plan up to the limit.... [4] Make health savings account contributions up to the limit.... [5] Make aftertax 401(k) contributions to the limit.... [6] Invest in a taxable account." MORE >>
"A recent survey by the Plan Sponsor Council of America showed that 93% of 401(k) plans offer employees the option of making Roth 401(k) salary deferrals. Let's say your plan allows Roth contributions, but you don't have the funds to maximize both those contributions and Roth IRA contributions. Which one should you contribute to? It turns out that each option has its own advantages." MORE >>
"A recent case by the Tennessee Court of Appeals highlights the importance of changing one's insurance and retirement policy beneficiaries after divorce. This is true no matter what the divorce documents say and no matter what any order signed by a Judge says." [Estate of Birdwell v. O'Dell, No. M2024-00025-COA-R3-CV (Ct. App. Tenn. Feb. 24, 2025)] MORE >>
"The OBBBA introduces new birth-based custodial accounts, (i.e., 'Trump accounts') ... [which] would be traditional [IRAs] subject to special rules until the year a child turns age 18 ... The OBBBA provides eligibility criteria to establish a Trump account, defines the types of contributions that may be made, establishes the rules for when distributions may occur, outlines the tax treatment of these accounts, and defines the eligible investment options and reporting requirements." MORE >>
"IRA custodians do not track aftertax amounts and aren't required to do so. They have no way of knowing how much of an IRA balance is aftertax. That responsibility rests with the IRA owner." MORE >>
Rev. Jun. 10, 2025. "What's New: [1] New retirement plan distributions and their repayments ... [2] 2024 Line 15c Worksheet ... New Line 25c section ... [3] Basis adjustments.... [4] References to 2024 Form 8915-F.... [5] Coronavirus-related distributions.... [6] Modified adjusted gross income (AGI) limit for Roth IRA contributions increased.... [7] Due date for contributions." [Also available: 2024 IRS Form 8606, Nondeductible IRAs] MORE >>
"Total US retirement assets were $43.4 trillion as of March 31, 2025, down 1.6 percent from December. Retirement assets accounted for 34 percent of all household financial assets in the United States at the end of March 2025.... Assets in individual retirement accounts (IRAs) totaled $16.8 trillion at the end of the first quarter of 2025, a decrease of 1.3 percent from the end of the fourth quarter of 2024. Defined contribution (DC) plan assets were $12.2 trillion at the end of the first quarter, down 1.9 percent from December 31, 2024." MORE >>
"The inherited account must be moved to a beneficiary account unless the beneficiary was the original owner's spouse -- and if the wrong method is used for moving the account balance, all of those tax minimization opportunities can be lost.... [T]he funds cannot be paid directly to the beneficiary even if the beneficiary intends to deposit the funds into a beneficiary account.... [T]he transfer should be accomplished via a direct trustee-to-trustee transfer." MORE >>
