Surgent's Avoiding the Top 10 Mistakes That Can Wipe Out Retirement Savings

Overview

Years of growth in a retirement account can be wiped out by one mistake. As such, retirement account owners and their advisors should take care to ensure that IRAs are operated in compliance with the governing regulations. This includes ensuring that distributions are handled properly, and that movement of retirement assets, including between IRAs and employer plans, does not violate the limitations that apply.

Prerequisites

None

Objectives

• Identify penalties that can apply to distributions, and how they can be avoided
• Help clients avoid the portability mistakes that can result in unintended tax consequences
• Move inherited retirement assets in a manner that preserves tax deferred status
• Help clients avoid ineligible contributions
• Explain the operational and compliance requirements for Roth IRA conversions

Highlights

• Coverage of applicable rules from SECURE Act 2.0
• The 10% penalty
• Net unrealized appreciation of employer securities
• Roth IRA conversions
• Rollovers and the limitations
• Direct rollovers vs indirect rollovers, and tax withholding 
• Beneficiary portability rules
• When a Roth IRA distribution is qualified to be tax-free
• Excess contributions and the 6% excise tax