All articles tagged with #iras
The Treasury and IRS announced upcoming regulations for Trump Accounts, a new type of IRA for eligible children, including details on contributions, investments, and distributions, with a pilot program offering a $1,000 contribution per eligible child, and plans to release a form for account setup and enrollment.
The IRS is reminding individuals aged 73 and older to withdraw their required minimum distributions (RMDs) from retirement accounts like IRAs before the end of the year, as mandated by the SECURE 2.0 Act. This legislation has increased the age for mandatory withdrawals from 70-and-a-half to 73, with a future increase to 75 by 2033. While delaying RMDs can help optimize Social Security benefits, it may also result in larger withdrawals due to account growth. Roth IRAs are exempt from RMDs, and workplace retirement plans may allow delays until retirement, except for significant business owners.
The IRS has announced the new retirement account contribution limits for 2024. The employee contribution limit for 401(k) plans will increase to $23,000, while catch-up contributions for those aged 50 and older will remain at $7,500. The contribution limit for IRAs will be raised to $7,000, with catch-up contributions remaining at $1,000. Additionally, the adjusted gross income phaseout range for Roth IRA contributions will increase, potentially allowing more Americans to qualify.
The U.S. Department of Labor is expected to introduce new rules aimed at increasing protections for investors who roll over more than $600 billion a year to Individual Retirement Accounts (IRAs). Currently, IRAs hold about $11.5 trillion, almost double the amount in 401(k) plans. While rollovers offer advantages, such as flexibility, they often come with higher fees and may not be subject to a fiduciary standard of care. The proposed Labor Department rule, which is currently under review, seeks to raise the bar on rollover advice provided by financial advisors and close loopholes, potentially subjecting all rollovers to the highest level of investor protections. This could include requiring advisors to act solely in investors' best interests and allowing investors to sue for bad rollover advice. The rule is expected to take at least two years to take effect.
In April 1983, a new comet was discovered by the InfraRed Astronomical Satellite (IRAS) and was named IRAS-Araki-Alcock. It made a close approach to Earth, passing within 3 million miles, and was visible to the naked eye. The comet was studied by astronomers and radar signals were bounced off it to determine its radius, rotation, and composition. Close approaches of comets to Earth are infrequent, but there have been several comets that may have approached Earth even more closely since 1983. Halley's Comet, the most famous of all comets, passed just 3.1 million miles from Earth in 837 and will pass within 8.6 million miles in 2134.