AskKen's stats
 
Reviews
  • Review count
    0
  • Helpfulness votes
    0
  • First review
    None
  • Last review
    None
  • Featured reviews
    0
  • Average rating
    0
 
Questions
  • Question count
    0
  • Helpfulness votes
    0
  • First question
    None
  • Last question
    None
  • Featured questions
    0
 
  • Answer count
    269
  • Helpfulness votes
    154
  • First answer
    March 8, 2013
  • Last answer
    October 16, 2014
  • Featured answers
    0
  • Best answers
    0
 
 
AskKen's Reviews
 
AskKen has not submitted any reviews.
 
AskKen's Questions
 
AskKen has not submitted any questions.
 
AskKen's Answers
1 2 3 4 5 ... 27 next>>
 

I have already named beneficiaries for my Fidelity IRAs. When I die, how do they contact Fidelity -- phone number? email? snailmail address? -- to

Thank you for your question, Dianne. It’s good that you have named beneficiaries for your IRAs, and hopefully you have done this for all your accounts that allow naming of beneficiaries. Many people don’t realize that certain assets, such as retirement accounts, life insurance policies, and annuities, pass to the beneficiaries named on those assets, and not according to the provisions of their will or trust. This means that the beneficiary designations on those accounts will overrule whatever is stated in your will or trust.

That’s why it’s crucial to keep your beneficiary designations up to date as the circumstances in your life change. This is something that should probably be revisited once a year, or with each major life change, such as a marriage, divorce, birth of a child, or death of a spouse.

To answer your specific question, in the event of your passing, your beneficiaries can call Fidelity’s Inheritor Services group at 800-544-0003. We will be happy to help them with the inheritance process.

Ken
6 days ago
by
AskKen
 

Can I see online how much I have withdraen y-t-d from each IRA to see where I am vis-a-vis the MRD?

Thank you for your question about tracking your minimum required distributions (MRDs).

We’ve made this easy for you – simply visit the Retirement Distribution Center (RDC) at Fidelity.com/RDC.

In the RDC, you will see what we have estimated your MRD to be for each account, and you can track what you have taken from those accounts.

If you select the account name, information is displayed on how the MRD estimate was calculated for each account – using the prior year-end balance, and life expectancy factor.

I hope this helps.

Ken
1 week, 2 days ago
by
AskKen
 

Inheriting approx $30,000 taxable IRA. Could use the cash to pay down house and other projects. Is there a 10% penalty?

Thank you for your question about your Inherited IRA assets. For this discussion, I will assume you inherited as a non-spouse beneficiary of the original owner.

I’ll start with the easy answer first. There is no 10% early withdrawal penalty for Inherited IRAs from a non-spouse, even if the original owner was under age 59½. The distributions get coded as “death distributions,” one of the exceptions for the 10% early withdrawal penalty. However, you will still have to include any IRA withdrawal in your adjusted gross income, which could have significant tax consequences.

If you have inherited a Roth IRA, you need to be aware of the 5-year rule for Roth IRA distributions. If the account has been open for less than 5 years, the 5-year rule penalty may apply to distributions of earnings from that account.

To answer your question about whether you should use the money for paying down your house and other projects, you may want to read our Fidelity Viewpoints® article on spending versus saving the inherited assets: https://www.fidelity.com/retirement...

There are a number of things to consider, so we suggest that you consult with your tax advisor.
I hope this helps.

Ken
1 week, 2 days ago
by
AskKen
 

IRA Proceeds at Death

I am 72 years old and with drawing money from my IRA according to the government schedule. My wife is 66 and listed as my beneficiary. Our question is how will the proceeds go to my wife when I die?

Example:
1. Will she have to completely withdraw the balance and pay taxes on the full amount?
2. Can she transfer the balance to her IRA without paying taxes at this time?
3. Can she continue to take my current withdrawals?
4. Can we make our current IRA's joint accounts?

Thank you for your assistance,
Dennis
Thank you for these questions about your IRA and what happens to it after your passing.
I’ll start with your fourth question – can you make the current IRA a joint account? The answer to this is no; IRA stands for Individual Retirement Arrangement and according to the IRS, these must be owned by one individual.

Now onto your other questions.

If you have your wife listed as your primary beneficiary and she is your sole beneficiary, then she can assume the account and put it into her own IRA after your death. She will have to finish taking any minimum required distributions (MRDs) you have not completed for your account for the year of your death. Taxes would be due on those distributions if applicable.

The remaining balance can then go into her own IRA and she can wait to start taking her MRDs until she turns 70½ years old. As she takes those MRDs, they will be taxed as applicable.
We have information on Fidelity.com about inheriting an IRA that may be helpful to read.
https://www.fidelity.com/retirement... and https://www.fidelity.com/retirement...

I hope this helps you.

Ken
2 weeks, 5 days ago
by
AskKen
 

Inherited IRA distributions

I have two inherited IRA from my father. I am required to take an RMD each year. One is much smaller and only invested in a money market. One is larger and well invested. Can I add up the amounts required to be taken in a particular year and then take the total amount from the smaller IRA? Thank you.
Thanks for your question. If your two Inherited IRAs were inherited from the same person, you may aggregate the two minimum required distributions (MRDs) and take the distribution from one Inherited IRA. This is the only situation that allows for aggregating MRDs; usually they must be taken from each Inherited IRA.

Hope this helps you.

Ken
2 weeks, 5 days ago
by
AskKen
 

What instructions should I leave for my beneficiaries so they can claim their inheritance (IRAs) once I die?

Thank you for your question. It can sometimes be difficult to discuss matters surrounding one’s death, but it’s a good idea to have these conversations. First of all, make sure that you have indeed named beneficiaries for your IRAs and other retirement accounts, and that this information has been kept up-to-date to reflect any changes in your life.

Second, it is always wise to work with an estate attorney to set up a formal will or trust. If you have one trusted person who can serve as your executor, you can give that person a list of all your accounts, and copies of the beneficiary information for those accounts. You should also make sure that person knows the exact location of your will or trust documents. Our Inheritor’s Checklist may come in handy for you as a guide for what needs to be gathered by your beneficiaries and/or executor after your passing. https://www.fidelity.com/estate-pla...

Hope this helps you.

Ken
2 weeks, 5 days ago
by
AskKen
 

can i pull money from my Rollover IRA for tuition

My daughter is going away to collage in Aug and we have to pay for her tuition. Can I pull money from my Rollover IRA with out penalty? does that qualify for hardship withdrawl? If so, and I have the funds sent to me electronically how do I state thats what the money is for?
Hi Sarah,

Yes, you can take a distribution from your IRA for use in covering qualified education expenses. The distribution will still count as income in the year it is taken, but because the IRS would regard this as “an immediate and heavy financial need” you can avoid the 10% early distribution penalty. Qualifying expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution.

If the expenses are equal to or greater than the amount of the distribution, then usually no additional tax or penalty is due. Usually you will have to file Form 5329 (found here http://www.irs.gov/pub/irs-pdf/f532... ) to show how much, if any, of your early distribution is subject to the 10% additional tax.

Having said that, I would caution you to not draw too heavily on your retirement savings for your daughter’s education. Even though retirement is still a few years away for you, the money you withdraw will no longer be working for you, and will be hard to replace. Also, a distribution from an IRA will be counted as income and could reduce the amount of financial aid your daughter might have received. Finally, remember that your daughter likely has more years to pay back loans than you do to save for retirement.

Ken
1 month, 1 week ago
by
AskKen
 

Is there such a thing as a "Joint IRA?"

Okay, I have a good memory. Back in 1973 during career day, we had a financial advisor talk to us. Back then the contribution limit was $2000. But he said a married couple could each have an IRA and a joint IRA, so you could save $6000 a year. (3 x $2000)

Is there such a thing as a joint IRA?

(Not to be confused with having multiple IRAs)
Hi Elvis,

No, there is no such thing as a joint IRA. All IRAs are required by the IRS to be registered to a single owner who can then name beneficiaries. IRA owners must have qualifying income in excess of the amount that they contribute to an IRA, but in the case of a non-working spouse, a working spouse’s income can qualify the non-working spouse to make annual IRA contributions. By the way, the contribution limits per person for 2014 are $5,500 if you are under 50, and $6,500 if you are 50 or older.

Ken
1 month, 1 week ago
by
AskKen
 

IRA for foreign nationals

I'm a foreign national working in the US and have a 401k account with my employer. If I leave US for my home country permanently, can I roll the 401k into an IRA to be managed at Fidelity, or does Fidelity require the IRA account owner to be living in the US?
Thanks for this question. Yes, you can roll the 401(k) into a Fidelity IRA if you choose and there will be no tax implications, assuming you plan to roll a Traditional 401(k) into a Traditional IRA or a Roth 401(k) into a Roth IRA. You won’t, however, be able to make further contributions into the new IRA unless you have qualifying U.S. taxable income. Page 8 of IRS publication 590 has information on what constitutes income for the purposes of contributing to an IRA: http://www.irs.gov/pub/irs-pdf/p590....

Ken
1 month, 1 week ago
by
AskKen
 

What is the minimum required to open a Roth IRA? Grandson interested.

Thanks for the question, Drew.

There is no minimum amount to open a Roth IRA but there are minimums associated with some of the investment options within the account. One way to get around the minimum investment amount, which is usually $2,500 for Fidelity funds, is to have your grandson enroll in automatic investments when he opens the account. This would mean that money was automatically withdrawn from his bank account on a regular basis and deposited into his retirement account. For more about automatic investments go to https://www.fidelity.com/cash-manag....

By committing to regular IRA contributions your grandson can start taking advantage of growth opportunities right away and he’ll be setting up good habits for his retirement savings future.

Ken
1 month, 1 week ago
by
AskKen