IRAs, 401Ks & Other Retirement Plans: Taking Your Money Out

By Twilia Slesnick & John C. Suttle, Nolo Press

Venue:

Description:

Don't give your nest egg away to the IRS!

Perhaps your retirement is on the horizon. Or you're changing jobs. Or are about to turn 70.5 years old....

Whatever is going on with your retirement account, IRAs, 401(K)s & Other Retirement Plans is for you! Make sense of the rules that govern distributions from retirement plans – and avoid the stiff taxes and penalties that lurk in the fine print.

In plain English, this book discusses all common types of retirement plans, including 401(k)s and other profit-sharing plans, Keoghs, IRAs and tax-deferred annuities. It covers:

• tax strategies before and at retirement
• penalties for taking money out early
• minimizing taxes
• distributions you must take
• distributions to your heirs

The 8th edition is completely updated with the latest tax rates, tables and methods for calculating required distributions. It also reflects the Pension Protection Act of 2006, a huge update to various retirement programs.

With IRAs, 401(K)s & Other Retirement Plans as your guide, you'll know the rules, avoid the penalties and save for your future like a pro.

Table of Contents

• I. How to Use This Book

1. Types of Retirement Plans

• Qualified Plans
• Individual Retirement Accounts
• Almost-Qualified Plans
• Nonqualified Plans

2. An Overview of Tax Rules

• Taxation Fundamentals
• General Income Tax Rules for Retirement Plans
• Income Tax on Qualified Plans and Qualified Annuities
• Special Income Tax Rules for Tax-Deferred Annuities
• Special Income Tax Rules for IRAs

3. Early Distributions: Taking Your Money Out Before the Law Allows

• Exceptions to the Early Distribution Tax
• Calculating the Tax
• Reporting the Tax
• Special Rules for IRAs

4. Substantially Equal Periodic Payments

• Computing Periodic Payments
• Implementing and Reporting Your Decision
• Modifying the Payments

5. Required Distributions: Taking Money Out When You Have To

• Required Distributions During Your Lifetime
• Death Before Required Beginning Date
• Death After Required Beginning Date
• Special Rules for Tax-Deferred Annuities
• Special Rules for Roth IRAs
• Penalty
• Reporting the Penalty
• Waiver

6. Required Distributions During Your Lifetime

• Required Beginning Date
• Computing the Required Amount
• Designating a Beneficiary
• Special Rules for Annuities
• Divorce or Separation

7. Distributions to Your Beneficiary If You Die Before Age 70½

• Determining the Designated Beneficiary
• Distribution Methods
• Spouse Beneficiary
• Nonspouse Beneficiary
• No Designated Beneficiary
• Multiple Beneficiaries, Separate Accounts
• Multiple Beneficiaries, One Account
• Trust Beneficiary
• Estate as Beneficiary
• Annuities
• Divorce or Separation
• Reporting Distributions From IRAs

8. Distributions to Your Beneficiary If You Die After Age 70½

• Administrative Details
• Spouse Beneficiary
• Nonspouse Beneficiary
• No Designated Beneficiary
• Multiple Beneficiaries, Separate Accounts
• Multiple Beneficiaries, One Account
• Trust Beneficiary
• Estate as Beneficiary
• Annuities
• Divorce or Separation

9. Roth IRAs

• Taxation of Distributions
• Early Distribution Tax
• Ordering of Distributions
• Required Distributions

10. Roth 401(k) Plans

• Taxation of Distributions
• Early Distribution Tax
• Ordering of Distributions
• Required Distributions

Appendixes

A. IRS Forms, Notices, and Schedules

• Form 4972, Tax on Lump-Sum Distributions
• Tax Rate Schedule for 1986
• Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts
• Form 5330, Return of Excise Taxes Related to Employee Benefit Plans
• Form 5498, IRA Contribution Information
• Form 8606, Nondeductible IRAs
• Revenue Ruling 2002-62

B. Life Expectancy Tables

• Table I: Single Life Expectancy
• Table II: Joint Life and Last Survivor Expectancy
• Table III: Uniform Lifetime Table
• Table IV: Survivor Benefit Limits

Index