Advantages of an IRA vs. 401(k)

• Greater Investment Choice
• Greater Flexibility in Beneficiary Selection
• SOSEPP Rule 72(t) available
• Waiver of 10% Penalty for Higher Education
• Net Unrealized Appreciation planning opportunity
• First time homebuyer penalty waiver

IRA Rules You Need to Know

• Tax Deductable Contributions available if you are not a participant in a company-sponsored plan. Participant defined as making/receiving contributions in a given year.
• Non-deductable IRA contributions require form 8606 filing for each year of contributions
• IRA funds may be rolled over ONLY ONCE in a 12 month period
• SOSEPP payments must continue for the greater of 5 years or until age 59.5
• Designated Beneficiary can be determined up until September 30 of the year after death
• Required Beginning Date for RMD is April 1 of the year after turning age 70.5
• RMD's CANNOT be rolled over
• No IRA contributions after age 70.5
• For IRA's with after-tax contributions, taxable IRA money must come out first
• Non-spouse beneficiary cannot use rollover with 60 day rule
• You must maintain records of your beneficiary designations

Top