Denise Appleby

1 month ago | morningstar.com | Denise Appleby

Millions of Americans take billions of dollars in early distributions each year. Early distributions—those taken before age 59 ½—are subject to a 10% additional tax or early distribution penalty. There are exceptions to this early distribution penalty, but traps await those who do not have a clear understanding of how the exceptions work. If you are among the millions who will take early distributions this year, the following are tips on how to avoid these traps.

2 months ago | wealthmanagement.com | Denise Appleby |Bruce D. Steiner

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA tools and resources for financial and tax professionals. She has over 15 years of experience in the retirement plans field, and has co-authored several books and written over 400 articles on IRA rules and regulations. Denise is also CEO of the consumer website that provides free information about IRAs, www.retirementdictionary.com More about Denise at DeniseAppleby.com.

Jan 15, 2025 | morningstar.com | Denise Appleby

Your 1099-R tells the IRS a story about your IRA distributions. But what if the story is not true? If a distribution was made from your IRA during 2024, your IRA custodian must send you a Form 1099-R for that transaction by Jan. 31. Form 1099-R information is also shared with the IRS and explains how much you withdrew and whether the amount is taxable. However, in some cases, the information might be misleading, requiring corrections to be made when it is reported on your tax return.

Nov 20, 2024 | morningstar.com | Denise Appleby

The IRS announced the 2025 limits for IRAs on Nov. 1, which includes new adjusted gross income and modified AGI for IRA contributions. In this issue, we provide the AGI limits for 2024 and 2025 and include reminders of how they have an impact on your eligibility. The IRA contribution limit remains at $7,000, and the catch-up contribution for individuals aged 50 and older as of the end of the year remains at $1,000. Reminders:Your regular IRA contribution cannot exceed your eligible compensation.

Oct 16, 2024 | kessler-prod.reta52d8.eas.morningstar.com | Denise Appleby

If you take a distribution from your IRA, you must include the amount in your income unless an exception applies. One of the exceptions is a distribution that is rolled over within 60 days of receipt. If you miss this 60-day deadline, you may still roll over the amount if you qualify for at least one of the three waiver provisions. There are two ways to move assets between IRAs: transfers and rollovers. Transfers are nonreportable and not subject to the 60-day deadline.