Generally speaking, an individual retirement account (IRA) is subject to inheritance tax if the owner of the account was age 59-1/2 or older at death, and an employer-sponsored pension, profit-sharing, or other form of retirement plan is taxable if the … Continue reading
Tag Archives: Retirement plan
An inherited individual retirement account (IRA) is not protected from the claims of creditors of the beneficiary because following the death of the IRA owner the account is not a “retirement account” within the meaning of 42 Pa.C.S. § 8124(b)(1)(ix). … Continue reading
The Internal Revenue Service has extended until June 30, 2021, the waiver of the physical presence requirement for retirement plan consents that was first announced in Notice 2020-42, 2020-26 I.R.B. 986 (6/22/2020). Notice 2021-03, 2021-02 I.R.B. ___ (1/11/2021). This latest notice includes a … Continue reading
The anti-alienation provisions that protect municipal pensions from attachment only apply while those funds are in the possession of the pension fund administrator, and so a post-nuptial agreement in which a spouse agreed to waive her rights to her husband’s … Continue reading
The Internal Revenue Service has announced relief from the “physical presence” requirement for the notarization or witnessing of participant and spousal consents to certain retirement plan elections during 2020 because of the COVID-19 pandemic. Under I.R.C. §§ 401 and 417, … Continue reading
The Internal Revenue Service has published proposed regulations that include new life expectancy tables for minimum required distributions under I.R.C. § 401(a)(9), which applies to both qualified retirement plans and individual retirement accounts. “Updated Life Expectancy and Distribution Period Tables … Continue reading
The Internal Revenue Revenue has announced cost-of-living changes to limitations on benefits and contributions for retirement plans in 2019. Notice 2018-83, 2018-47 I.R.B. ___ (11/19/2018). Among the most common limitations are the following changes: The contribution limit for employees who … Continue reading
This is an overview/explanation from Webcalculators: … Continue reading
The Internal Revenue Service (IRS) has issued a notice providing guidance on the application of the decision in Obergefell v. Hodges, 576 U.S. ___, 135 S.Ct. 2584 (2015), to retirement plans qualified under section 401(a) of the Internal Revenue Code … Continue reading
Decedent began divorce action before death and changed the beneficiaries of a profit sharing plan of his employer without spouse’s consent. ERISA and not 20 Pa.C.S.A. 6111.2 controls, meaning beneficiary designations could not exclude spouse without spouse’s consent in writing. … Continue reading