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    March 8, 2013
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    August 14, 2014
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AskKen's Answers
1 2 3 4 5 ... 26 next>>
 

If I contributed to a 401k plan part of the year and terminated employment and went to work for another employer with no employer plan

can I contribute to a deductible IRA? I assume not because I participated in a qualified plan the first half of the year; however can I do a non-deductible IRA
Thanks for your question. Your ability to make tax-deductible IRA contributions depends on a couple of factors: first, whether or not you are covered by an employer-sponsored plan, and second, your income level.
For someone who is not covered by a company retirement plan, all IRA contributions are tax-deductible. But in your case, since you were contributing to a company 401(k) plan for part of the year, you are considered by the IRS to be covered for the whole year.

Because you are considered to be covered, you can only make tax-deductible IRA contributions if your income falls within the 2014 deductibility range. If your Modified Adjusted Gross Income is less than $60,000 if single, or $96,000 if married and filing jointly, you can make a fully deductible IRA contribution of up to $5,500 if you are under age 50 or $6,500 if you are age 50 or older. You can make a partially deductible IRA contribution if you make between $60,000 and $70,000 if single, or between $96,000 and $116,000 if married and filing jointly.

No matter what your income level, you can always make a non-deductible IRA contribution to make sure that you keep your retirement savings on track.

To find out how much, if any, of your contribution is deductible you can use our IRA calculator at https://scs.fidelity.com/products/m...

I hope this information is helpful.

Ken
2 weeks, 5 days ago
by
AskKen
 

What is the max. I can put in my Roth IRA a year(I'm married). What is the max. on my 4O1K also?

Hi Lisa,

Thanks for your questions. Since you are under age 50, the maximum you can contribute to a Roth IRA or any IRA in 2014 is $5,500. Individuals who are age 50 and over can contribute an additional $1,000 for a total of $6,500. The maximum you can contribute to an employer-sponsored 401(k) plan in 2014 is $17,500, with an additional $5,500 allowed for those age 50 and over.

Ken
2 weeks, 5 days ago
by
AskKen
 

On an existing SEP-IRA, what is the deadline for making a 2013 SEP-IRA contribution? The return is on extension until October 15th.

Thanks for inquiring about making a contribution your company’s SEP-IRA. Employer contributions to a SEP-IRA are due no later than the employer’s tax filing deadline, including extensions. If you have an extension to file your business 2013 tax return until Oct 15, that would be the deadline to make your SEP-IRA contribution.

Ken
4 weeks, 1 day ago
by
AskKen
 

Can I take more than the minimun Required Distribution

I will turn 70 1/2 in November and was wanting to know if I can withdraw more than the minimum? Also is it correct that on the first withdrawal I can wait until the following year? If so, and I take some money out in the first part of the year will I have to take more out by December? by the way this is my rollover IRA brokerage account that I'm talking about.
Thanks for your question about minimum required distributions (MRDs). The IRS requires you to begin taking MRDs from your IRA in the year you turn 70½. But yes, you can always take more than the required amount. Just keep in mind that distributions from an IRA are generally taxable as income in the year of the distribution. The deadline to take your first MRD is April 1 of the year following the year you turn 70½. So, if you are turning 70½ this November, you must take your first distribution no later than April 1, 2015. The April 1 deadline, however, applies only to the first MRD, and the deadline to take your MRD for all subsequent years is December 31. If you delay your 2014 MRD and take it during the first part of the 2015 calendar year, you would still need to take your 2015 MRD no later than December 31, 2015.

It might be helpful to review this page about the Retirement Distribution Center for more details on your MRD: https://www.fidelity.com/retirement...

Ken
4 weeks, 1 day ago
by
AskKen
 

what is my MRD % for 2014???

Thank you for your question about determining your minimum required distribution (MRD).

You can find your MRDs by visiting the Retirement Distribution Center (RDC) at Fidelity.com/RDC. There is an estimated MRD for each account calculated for you, starting the first year you reach age 70½. As long as Fidelity has the correct date of birth for you and your spouse (if you are married), the year end balances are correct, and the beneficiary information is correct, then those estimated MRDs are correct. Every year on January 1st or soon thereafter, the RDC will calculate your MRD for that year and track the distributions you take.

We have a great general article about how MRDs are calculated: https://www.fidelity.com/retirement...

We also have a series of frequently asked questions about MRDs: https://www.fidelity.com/retirement...

Please contact us if you have additional questions about your MRDs.

I hope this helps.

Ken
1 month, 1 week ago
by
AskKen
 

dividend reinvestment

Is there a way in my retirement on-line account to receive my dividends in the form of stock. What do I need to do to make this happen?
Thanks for your question. Setting up a dividend reinvestment program for holdings in your Fidelity account is easy and straightforward. Here are the basic steps.

1. Log in to your account on Fidelity.com.
2. Locate the account that holds the positions for which you wish to set up dividend reinvestment plans.
3. Click the Select Action link, and choose Update Accounts from the dropdown list.
4. This will take you to the Update Accounts/Features page. Under Account Features, select Dividends and Capital Gains.
5. A list of all positions in your accounts will be presented with the status of whether or not dividends and capital gains are Reinvested or Deposited to Core Account.
6. If you want to change the status, simply click on the Update link under Action and choose the new desired status.

As always, feel free to call one of our service representatives at 800-343-3548 who would be happy to help guide you through this process.

Thank you for your question.

Ken
1 month, 1 week ago
by
AskKen
 

what are the RMD requirements for Keoghs and 401A plans

I have a traditional IRA, a Roth, a Keogh, and a 401A plan. From which accounts must I take RMDs, and do I use Table III to calculate RMDs for all cases? Thank you.
Thank you for your question about your minimum required distributions (MRDs).

MRDs will be required for your Traditional IRA, Keogh, and 401(a) plan. Only the Roth IRA will not have MRDs during your lifetime.

In general, you must start taking MRDs beginning the year in which you turn 70½. For certain employer-sponsored plans, you may be able to delay starting withdrawals if you own less than 5% of the company and are still working at the company.

You might find some additional helpful information in this great general article about how MRDs are calculated: https://www.fidelity.com/retirement...

Please note that the Table III you mention is called the Uniform Lifetime Table in our article.
You should also visit our Retirement Distribution Center (RDC) on Fidelity.com to see each MRD calculated for you once you turn 70½. The RDC automatically recalculates your MRDs on January 1st each year and tracks all your distributions and tax withholding from those accounts. The RDC also links to educational and news articles, and has links to automatic withdrawal options for helping you take your MRD from your accounts. You can visit the RDC at www.fidelity.com/RDC

If you would like to estimate what your combined MRDs might be, you can do this by using our MRD Calculator at: https://www.fidelity.com/calculator...

Our retirement representatives would be happy to assist you with any additional questions you may have.

Ken
1 month, 4 weeks ago
by
AskKen
 

Does the annual MRD calculation include the value of Roth IRAs?

I have a regular and a roth IRA. Is my total MRD based upon the sum of them even though I can take the entire MRD from the regular IRA?
Thank you for your question about rules for minimum required distributions (MRDs). According to IRS rules, minimum required distributions do not need to be taken from Roth IRAs during your lifetime.

If your IRAs are with Fidelity, you should be able to access our Retirement Distribution Center (RDC) on Fidelity.com. In the RDC, you will see an MRD amount for your Traditional IRA, but none for your Roth IRA. The RDC recalculates your MRD automatically on January 1st each year. It also tracks all your distributions from those accounts, including the federal and state tax withholding. The RDC also links to educational and news articles, and has links to automatic withdrawal options for helping you take your MRD from your accounts. You can visit the RDC at www.fidelity.com/RDC

Here is a series of frequently asked questions about MRDs that you might find helpful: https://www.fidelity.com/retirement...

Our retirement representatives would be happy to assist with any additional questions you may have.

Ken
1 month, 4 weeks ago
by
AskKen
 

Can I withdraw from my IRA w/o a penalty

I'm considering using a portion of my IRA funds to purchase a home.
what's the max I can withdraw..I'm currently 62
Thanks for asking about IRA withdrawal rules.

If you have a Traditional IRA, then you will not be subject to the 10% early withdrawal penalty since you are over the age of 59½. Keep in mind, however, that with a Traditional IRA you will generally owe taxes on the amount withdrawn.

If your IRA is a Roth IRA, withdrawals are tax-free, and you will not be subject to the early withdrawal penalty for withdrawing any of the contributions from your account. However, if you are withdrawing any earnings or interest from your account, the account—or any of the Roth IRAs you own—must have passed the five-year aging point. The five-year aging rule starts on January 1 of the calendar year of your first contribution into the account. As long as your withdrawal of any earnings or interest is after January 1 of the fifth year, and since you are age 62, then you are not subject to early withdrawal penalties.

For either the Traditional or the Roth IRA, there is no limit for the amount you can withdraw since you are over age 59½. Please contact Fidelity if you want to discuss any additional questions you might have.

Ken

Important Additional Information:
A distribution from a Roth IRA is tax free and penalty free, provided the five-year aging requirement has been satisfied and one of the following conditions is met: age 59½, disability, qualified first-time home purchase, or death.
2 months ago
by
AskKen
 

Changing to Fidelity SIMPLE IRA from 401k

I am a small business owner frustrated with my 401k TPA and financial advisor. I want to switch back to a Fidelity SIMPLE IRA for myself and all of my employees (6) and manage it ourselves. Another financial planner told me it is legal to switch from 401k to SIMPLE mid-year, but your form says it cannot be done in the same year. Which is true?
Thank you for your question about a Fidelity SIMPLE IRA plan for your small business. IRS rules state that an eligible employer must not maintain any other employer-sponsored retirement plan for the same calendar year in which a SIMPLE IRA plan is maintained. Generally, an employer is considered to have maintained the plan if contributions have been allocated to the plan that year. Here is a link to the IRS FAQs about SIMPLE IRAs: http://www.irs.gov/Retirement-Plans...

In other words, you must wait until the end of this calendar year to establish SIMPLE IRAs for your employees. When that time comes, please contact a Fidelity retirement representative at 800-544-5373 and we would be happy to assist you with this process.

Ken
2 months ago
by
AskKen