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

Table of Contents......Page 10
Introduction: How to Use This Book......Page 14
1 Types of Retirement Plans......Page 16
A. Qualified Plans......Page 19
B. Individual Retirement Accounts......Page 25
C. Almost-Qualified Plans......Page 29
D. Nonqualified Plans......Page 30
2 Basic Tax Rules for Distributions......Page 32
A. Taxation Fundamentals......Page 34
B. General Income Tax Rules for Retirement Plans......Page 39
C. Income Tax on Qualified Plans and Qualified Annuities......Page 43
D. Special Income Tax Rules for Tax-Deferred Annuitie......Page 63
E. Special Income Tax Rules for IRAs......Page 64
F. How Penalties Can Guide Planning......Page 67
3 Taxes on Early Distributions......Page 70
A. Exceptions to the Tax.......Page 71
B. Reporting the Tax......Page 78
C. Special Rules for IRAs......Page 82
4 Avoiding the Early Distribution Tax: Substantially Equal Periodic Payments......Page 90
A. General Rules for Computing Payments......Page 91
B. Computing Periodic Payments......Page 94
C. Implementing and Reporting Your Decision......Page 101
D. Modifying the Payments......Page 104
5 When Must You Begin to Take Your Money?......Page 108
A. Required Distributions During Your Lifetime......Page 110
B. Death Before Required Beginning Date......Page 111
D. Special Rules for Tax-Deferred Annuities......Page 112
F. Penalty......Page 114
G. Waiver......Page 120
6 Distributions You Must Take During Your Lifetime......Page 122
A. Required Beginning Date......Page 124
B. Computing the Required Amount......Page 127
C. Designating a Beneficiary......Page 132
D. Special Rules for Annuities......Page 136
E. Divorce or Separation......Page 139
7 Distributions to Your Beneficiary If You Die Before Age 701/2......Page 144
A. Determining the Designated Beneficiary......Page 146
B. Distribution Methods......Page 148
C. Spouse Beneficiary......Page 151
D. Non-Spouse Beneficiary......Page 157
E. No Designated Beneficiary......Page 159
F. Multiple Beneficiaries, Separate Accounts......Page 160
G. Multiple Beneficiaries, One Account......Page 161
H. Trust Beneficiary......Page 166
J. Annuities......Page 170
K. Divorce or Separation......Page 171
L. Reporting Distributions......Page 173
8 Distributions to Your Beneficiary If You Die After Age 701/2......Page 174
A. Administrative Details......Page 176
B. Spouse Beneficiary......Page 179
C. Non-Spouse Beneficiary......Page 184
D. No Designated Beneficiary......Page 186
F. Multiple Beneficiaries, One Account......Page 187
G. Trust Beneficiary......Page 191
H. Estate as Beneficiary......Page 193
J. Divorce or Separation......Page 194
9 Roth IRAs......Page 196
A. Taxation of Distributions......Page 198
B. Early Distribution Tax......Page 208
C. Ordering of Distributions......Page 211
D. Required Distributions......Page 212
Appendix A: IRS Forms, Notices, and Schedules......Page 214
Form 4972 Tax on Lump-Sum Distributions......Page 215
Tax Rate Schedule for 1986......Page 0
Form 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts......Page 220
Form 5330 Return of Excise Taxes Related to Employee Benefit Plans......Page 226
Form 5498 IRA Contribution Information......Page 239
Form 8606 Nondeductible IRAs......Page 240
Revenue Ruling 2002-62......Page 250
Appendix B: Life Expectancy Tables......Page 256
Table I: Single Life Expectancy......Page 257
Table II: Joint Life and Last Survivor Expectancy......Page 258
Table III: Uniform Lifetime Table......Page 276
Table IV: Survivor Benefit Limits......Page 277
Index......Page 278
Related Products......Page 292