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GAO Report Shines Light on IRAs: Popular and Ripe for the Picking

"The report provides some fascinating information about the number of people who have IRAs, as well as the staggering amounts that some people have accumulated in them.... The government realizes that IRAs are ripe for the picking.... There are a lot of people with IRAs.... Mitt Romney' s IRA has company!"

Year-of-Death Reporting for Deceased IRA Owners

"Even if the deceased IRA owner didn't take a distribution last year, there is special reporting of his or her IRA balance. For the year of death, the IRA custodian must file IRS Form 5498 for the decedent, showing the IRA's fair market value (FMV), including any contributions the decedent made before he or she died. (Note that if the decedent made any contributions or rollovers last year, those contributions must be properly reported on his/her tax return.)"

The Crazy-Complicated 2026 SIMPLE IRA Plan Elective Deferral Limits

"Depending on your age, the size of your company and (in the case of larger businesses), the amount of your company's contribution, you are subject to one of six SIMPLE IRA deferral limits, including one of three catch-up limits. On November 13, 2025, the IRS announced the 2026 COLA limits for IRAs and retirement plans. Here are the 2026 limits for SIMPLE IRAs."

2015 IRA Distribution Being Rolled Over in 2016? Facts You Must Know

"Nothing prevents you from taking an IRA distribution in December of 2015 and rolling it over in January of 2016 as long as you follow the rollover rules that always apply. You will want to be especially careful of the 60-day rule for rollovers during this busy time of year.... Report the rollover for 2015.... Apply the one rollover-per-year rule correctly.... Add in the rollover when calculating your 2016 RMD."

The Tricky Still-Working Exception: After Death

"[T]he RBD (when RMDs are officially 'turned on') is April 1 of the year after the year person turns age 73, or April 1 of the year after the year a person retires if using the still-working exception. You must live long enough to reach that date for RMDs to officially begin. [When an employee dies] before the RBD applicable to his 401(k) plan, there is no year-of-death RMD from the plan for his beneficiaries to worry about."

When You Should Not Name Your Spouse as IRA Beneficiary

"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."

Eligible Designated Beneficiary Trivia

"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."

Reasons to Name a Trust as IRA Beneficiary

"[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."

State Tax Treatment of 529-to-Roth IRA Rollovers

"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."

Eight Things to Know About a Special Spousal Rule That Allows Smaller RMDs

"If your spouse is your sole beneficiary for 2015 and is more than 10 years younger than you, you may use the Joint Life Expectancy Table to calculate your RMD for 2015, instead of the Uniform Lifetime Table.... If you have more than one primary beneficiary listed on your IRA, you must use the Uniform Table and not the Joint Life Expectancy Table.... If you change beneficiaries during the year, you may not use the Joint Life Expectancy Table.... Your IRA custodian ... is permitted to use the Uniform Lifetime Table for all reporting of RMDs to IRA owners. Be aware that an amount reported to you may, therefore, be more than your actual 2015 RMD."