Pension Plans are Going Broke
October 3rd, 2017
The Washington Examiner has estimated that 114 multi-employer pension plans, involving 1.3 million people, are underfunded. This means that the amount of money in the pension plan is less than the amount that the plan should have.
If you are in financial trouble because your savings or retirement is not what it should be and you are looking for other options, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.
IRS Relaxes IRA Transfer Rules
November 30th, 2016
The IRS has recently relaxed a long-time rule punishing people who do not correctly transfer money from one retirement account to another within sixty (60) days of pulling out the money. Now, the IRS offers some exceptions to this sixty (60) day rule, including a lost check or a death in the family.
If the IRS is causing you problems, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.
IRS Announces New Limitations for Retirement Plans
November 10th, 2015
The annual limit a person can contribute to an individual retirement account (IRA) is $5,500 per year. The elective contribution limit for employees who have a 401(k) plan, 403(b) plan, 457 plan, or federal thrift savings plan is $18,000 per year. The new income limit to be able to contribute to a Roth IRA is $184,000.
If you are having tax issues and would like some assistance, contact our law office at 816-524-4949 or www.Hoorfarlaw.com.
July 10th, 2015
A rollover is when a person withdraws or takes money out of one retirement account and moves it to another retirement account. If done correctly, then the transfer of money from one account into another is not taxable.
One requirement for a valid retirement rollover is that the retirement plan distribution is an eligible distribution. Distributions that are made because of a hardship, are a required minimum distribution, or are nontaxable already cannot be rolled over.
Another requirement for a valid retirement rollover is that the money must be transferred into the new account within 60 days of receiving the money. If the money is not transferred within the 60 day window, then the money that was not transferred within the timeframe will be completely taxable. Even if you transfer the money into another retirement account on day 61 or any time thereafter, all of the money will be taxable to you.
An additional 10% penalty is applied on money that distributed to a person under the age of 59.5 and that is not rolled over within the 60 day window. If you or someone you know is having tax issues we can be reached at Hoorfarlaw.com or 816-524-4949.
Small Business Retirement Plan Penalty
June 24th, 2015
If you are a small business with a retirement plan, here are a few tips you should check out:
- Plan administrators and sponsors who fail to file the required forms can face up to $15,000 in penalties per return.
- There is a special penalty relief program with the IRS that late-filers can apply for as long as the late returns were filed before June 2.
If you are facing a tax problem, contact our office at www.Hoorfarlaw.com or 816-524-4949.
Required Retirement Plan Distributions
June 4th, 2015
For anyone who is age 70.5 or older with an IRA, retirement plan, or a Roth IRA, you are required to take a required minimum distribution. A required minimum distribution is a required withdrawal of your retirement account. If you are required to take a minimum distribution, you must do so before April 1 of this year if this is the first year you were 70.5 or older. Otherwise, you must take your minimum distribution on or before December 31 of this year.
If you are having tax issues or are not familiar with required minimum distributions, contact our law office at 816-524-4949 or www.Hoorfarlaw.com.
Retiring your Retirement
April 17th, 2015
Here are a few facts (according to Money.com) about retirement accounts. How do you stack up?
- The average retirement account balance for men is $121,000. The average for women is $78,000.
- The average contribution to a 401(k) account is $9,600.
- 67% of Americans say that they plan on saving more for retirement in the new year.
- The average savings rate for an employee is 8.1% of their income.
- The cities with the highest 401(k) savings rates are San Francisco, San Jose, Raleigh, Houston, and Hartford.
If you are feeling more in debt than you think you should, feel free to contact our office at 816-524-4949 or www.Hoorfarlaw.com.
401(k) Contributions in Bankruptcy
November 25th, 2014
If you are in a Chapter 13 bankruptcy or thinking of filing a Chapter 13 bankruptcy and have a 401(k), you may have an issue continuing to contribute to your 401(k) after filing.
If you need legal assistance, contact our office at 816-524-4949.
March 6th, 2013
Saving for your retirement can make you eligible for a tax credit worth up to $2,000. If you contribute to an employer-sponsored retirement plan, such as a 401(k) or to an IRA, you may be eligible for the Saver’s Credit.
Here are seven points the IRS would like you to know about the Saver’s Credit:
1. The Saver’s Credit is formally known as the Retirement Savings Contribution Credit. The credit can be worth up to $2,000 for married couples filing a joint return or $1,000 for single taxpayers.
2. Your filing status and the amount of your income affect whether you are eligible for the credit. You may be eligible for the credit on your 2012 tax return if your filing status and income are:
- Single, married filing separately or qualifying widow or widower, with income up to $28,750
- Head of Household with income up to $43,125
- Married Filing Jointly, with income up to $57,500
3. You must be at least 18 years of age to be eligible. You also cannot have been a full-time student in 2012 nor claimed as a dependent on someone else’s tax return.
4. You must contribute to a qualified retirement plan by the due date of your tax return in order to claim the credit. The due date for most people is April 15.
5. The Saver’s Credit reduces the tax you owe.
6. Use IRS Form 8880, Credit for Qualified Retirement Savings Contributions, to claim the credit. Be sure to attach the form to your federal tax return. If you use IRS e-file the software will do this for you.
7. Depending on your income, you may be eligible for other tax benefits if you contribute to a retirement plan. For example, you may be able to deduct all or part of your contributions to a traditional IRA.
Courtesy of the Internal Revenue Service.