New simplified proposed regulations allow for significantly higher IRA accumulations

Article Abstract:

The author discusses changes to individual retirement accounts distribution rules in 2001.

United States

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Avoiding tax on premature retirement distributions

Article Abstract:

The penalties imposed on taxpayers for withdrawals from qualified retirement plans and individual retirement accounts (IRAs) before age 59 1/2 can be avoided in certain circumstances. Exceptions to the penalty exist for distributions made in the case of total and permanent disability, death, medical expenses incurred in excess of 7.5% of adjusted gross income, and divorce or separation under a qualified domestic relations order. Short-term cash needs could be met by IRA owners by making use of 60-day rollover provisions.

Pension, health, and welfare funds, Pension Funds & Benefit Plans, Pension Funds, Qualified benefit plans, Tax penalties

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Maximizing the deferral of IRA required minimum distributions

Article Abstract:

Taxpayers with individual retirement accounts (IRAs) have a number of elections and beneficiary designation options available to them to defer distribution of funds and minimize income and estate taxes. Despite the fact that minimum distributions after age 70 1/2 have been relaxed for some qualified plans, these distributions are still required for IRAs. Prior to the required beginning date, elections can be made to extend the distribution period. Options are also available to a surviving spouse that receives an IRA from the decedent's estate.

Beneficiaries, Tax elections

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