Source: www.benefitslink.com/rdf/benefitslink-iras.rdf
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| IRAs (BenefitsLink.com)
Headlines re IRAs, gathered by BenefitsLink.com
"A Senate Finance Committee proposal floated this past week as part of a highway-funding bill would give heirs five years to empty inherited individual retirement accounts or 401(k)s, which would typically trigger income-tax payments. The rule change could raise some $4.6 billion in income taxes over the next decade, according to a statement by Sen. Max Baucus (D., Mont.), chairman of the Senate Finance Committee." (The Wall Street Journal)
"It's almost always a good idea to take advantage of employer matching funds using your 401(k) plan. After that, you need to decide whether it's better to do additional saving in your 401(k) or switch to a traditional or Roth IRA. Here's how to prioritize saving in a 401(k) and IRA." (U.S. News & World Report)
"Can I invest my IRA funds like Mitt Romney? In theory, yes. In practice, no. There are mutual funds which invest in private equity deals of the sort Mitt Romney holds in his IRA. However, under the best of circumstances, these funds need to be scrutinized carefully as to their management fees and whether they really obtain the kinds of investment opportunities available to a Bain Capital partner. I'm skeptical." (OUPblog)
Feb. 2, 2012. 'While economic studies have established the benefits of annuitization for retirees -- including both immediate and longevity annuities -- many workers have only limited access to these products. The administrative guidance issued by the Treasury today, easing and simplifying certain regulatory requirements for retirement plans and IRAs, takes an important first step towards a more complete private market offering more attractive lifetime income options." (Council of Economic Advisers, Executive Office of the President)
"This document contains proposed regulations relating to the purchase of longevity annuity contracts under tax-qualified defined contribution plans under section 401(a) of the Internal Revenue Code (Code), section 403(b) plans, individual retirement annuities and accounts (IRAs) under section 408, and eligible governmental section 457 plans. These regulations will provide the public with guidance necessary to comply with the required minimum distribution rules under section 401(a)(9). The regulations will affect individuals for whom a longevity annuity contract is purchased under these plans and IRAs (and their beneficiaries), sponsors and administrators of these plans, trustees and custodians of these IRAs, and insurance companies that issue longevity annuity contracts under these plans and IRAs." (U.S. Internal Revenue Service)
"Retirees who want to keep investments sheltered from paying current taxes will essentially have two options. Savings can be left in a company retirement plan, where retirees can keep their money in a lineup of funds chosen by the company. Or the assets can be rolled over into another tax-favored account, generally an individual retirement account, which provides investors with control over investment choices and makes it easier to work with a financial adviser." (The Wall Street Journal)
"Total IRA assets represent 29.7% of total retirement market assets currently, and as large defined contribution (DC) plan rollovers continue to fuel asset levels, IRAs will encompass 33% of the total retirement market by 2016." (PLANSPONSOR.COM)
"The taxpayer may have to include in 2011 income all or some of the taxable amount of the 2010 rollovers and conversion to a Roth IRA and in-plan Roth rollovers that would have otherwise been included in 2012 income. To determine the amount to report in 2011, the taxpayer must complete the 2011 Form 8606, using Part III, for distributions from a Roth IRA and Part IV, for distributions from a designated Roth account." (Wolters Kluwer Law & Business / CCH)
"The new Roth TSP component will invest an employee's after-tax earnings and cannot be taxed when withdrawn, similar to a traditional Roth IRA. There will be no income limits on earnings from TSP's Roth option as there are on a traditional Roth IRA, which could make the feature more attractive to federal workers and service members." (Government Executive)
"[T]he most common advice that retirees with 401(k) money receive is to roll the plan over into an individual retirement account (IRA). But is this really always the best option? Although the answer to this is clearly yes in many cases, this article will examine the pros and cons of this common financial transaction, and when it may make sense to avoid it." (Investopedia US via Hearst Communications Inc.)
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