Primer on the One-Per-12-Month Rollover Rule
Monday, January 21
Famous Court CaseAs a result of the famous year 2014 United States Tax Court ruling in Bobrow v. Commissioner, the one-per-12-month rule for rollovers between IRAs. the rollover rule is found in IRC Sec. 408(d)(3)(B) and prior to this famous court case most financial professionals interpreted th...
How Solo 401k Plans an IRAs Affect Financial Aid
Sunday, January 20
Solo 401k plans and IRAs can affect various forms of financial aid in the following ways:Student Financial AidWhen applying for financial assistance from the U.S. Department of Education Office of Federal Student Aid, an applicant is required to report many types of assets (the parents’ and the s...
Use a Roth IRA to Save for College Higher Education Expenses
Tuesday, December 25
While a 529 account is the primary tax-advantaged vehicle to save for your kids education, it is not enough with the cost of college going up. A way to also help save for your child's college education is to contribute to a Roth IRA especially with the cost of college now $30,000‒$35,000 per st...
Mega Roth Strategy Solo 401k
Monday, December 24
While the Roth backdoor strategy is generally associated with making nondeductible IRA contributions and subsequently converting those funds to a Roth IRA, the "mega Roth strategy" is associated with making voluntary after-tax contributions to a plan and immediately converting those funds to eit...
The Roth IRA Turned 20 in 2018 & is Aging Well
Sunday, December 23
I remember opening my first Roth IRA in 1998 when it became first available and contributing the maximum contribution limit of $2,000 at the time. Fast forward 20 years later and the contribution limits have more than tripled.IRS data shows that Roth IRAs hold over $625 billion, more than 19 mil...
2018 SEC Alert for Solo 401k and IRA Investors
Saturday, December 22
The Securities and Exchange Commission's (SEC) Office of Investor Education and Advocacy updated their investor alert for self-directed IRAs, which includes self-employed IRAs such as SEP and SIMPLE IRAs, and fraud on August 8, 2018. While the alert does not specifically name another popular sel...