IRAs, 401(k)s & Other Retirement Plans: Taking Your Money Out

Table of Contents......Page 9
Introduction: How to Use This Book......Page 13
1. Types of Retirement Plans......Page 15
Qualified Plans......Page 18
Individual Retirement Accounts......Page 24
Almost-Qualified Plans......Page 27
Nonqualified Plans......Page 28
2. An Overview of Tax Rules......Page 31
Taxation Fundamentals......Page 33
General Income Tax Rules for Retirement Plans......Page 38
Income Tax on Qualified Plans and Qualified Annuities......Page 42
Special Income Tax Rules for Tax-Deferred Annuities......Page 61
Special Income Tax Rules for IRAs......Page 62
3. Early Distributions: Taking Your Money Out Before the Law Allows......Page 69
Exceptions to the Early Distribution Tax......Page 70
Calculating the Tax......Page 76
Reporting the Tax......Page 77
Special Rules for IRAs......Page 83
4. Substantially Equal Periodic Payments......Page 89
Computing Periodic Payments......Page 92
Implementing and Reporting Your Decision......Page 100
Modifying the Payments......Page 102
5. Required Distributions: Taking Money Out When You Have To......Page 107
Required Distributions During Your Lifetime......Page 109
Death Before Required Beginning Date......Page 110
Special Rules for Tax-Deferred Annuities......Page 111
Penalty......Page 113
Reporting the Penalty......Page 117
Waiver......Page 119
6. Required Distributions During Your Lifetime......Page 121
Required Beginning Date......Page 123
Computing the Required Amount......Page 126
Designating a Beneficiary......Page 130
Special Rules for Annuities......Page 133
Divorce or Separation......Page 137
7. Distributions to Your Beneficiary If You Die Before Age 70½......Page 141
Determining the Designated Beneficiary......Page 143
Distribution Methods......Page 145
Spouse Beneficiary......Page 148
Nonspouse Beneficiary......Page 154
No Designated Beneficiary......Page 156
Multiple Beneficiaries, Separate Accounts......Page 157
Multiple Beneficiaries, One Account......Page 158
Trust Beneficiary......Page 163
Estate as Beneficiary......Page 166
Annuities......Page 167
Divorce or Separation......Page 168
Reporting Distributions From IRAs......Page 169
8. Distributions to Your Beneficiary If You Die After Age 70½......Page 171
Administrative Details......Page 173
Spouse Beneficiary......Page 175
Nonspouse Beneficiary......Page 181
Multiple Beneficiaries, Separate Accounts......Page 183
Multiple Beneficiaries, One Account......Page 184
Trust Beneficiary......Page 187
Divorce or Separation......Page 190
9. Roth IRAs......Page 193
Taxation of Distributions......Page 196
Early Distribution Tax......Page 205
Ordering of Distributions......Page 208
Required Distributions......Page 209
10. Roth 401(k) Plans......Page 211
Taxation of Distributions......Page 212
Early Distribution Tax......Page 216
Required Distributions......Page 217
Appendixes......Page 0
Appendix A. IRS Forms, Notices, and Schedules......Page 219
Form 4972, Tax on Lump-Sum Distributions......Page 220
Tax Rate Schedule for 1986......Page 224
Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts......Page 225
Form 5330, Return of Excise Taxes Related to Employee Benefit Plans......Page 233
Form 5498, IRA Contribution Information......Page 250
Form 8606, Nondeductible IRAs......Page 251
Revenue Ruling 2002-62......Page 261
Appendix B. Life Expectancy Tables......Page 267
Table I: Single Life Expectancy......Page 268
Table II: Joint Life and Last Survivor Expectancy......Page 269
Table III: Uniform Lifetime Table......Page 287
Table IV: Survivor Benefit Limits......Page 288
Index......Page 289