How can I represent a loan from a 401k that is being paid back?
Here is how to represent an 401(k) loan repayment. 1. Enter the 401(k) balance as the current balance (as reduced by the loan). 2. Add a footnote to indicate that there is a loan outstanding from the 401(k). 3. Enter the repayments as nondeductible contributions to the 401(k). To do this, go to the “more […]
Why do the IRA distributions seem too low for awhile, then suddenly jump up?
This can happen if you specify that the software should use required minimum distributions (which is the default mode of calculating distributions), but you start distributions before age 70. The IRS requires that distributions start at age 70 1/2, but it does not provide any definitive method for calculating "required minimum" distributions before that age. […]
How can I calculate the separate property portion of an IRA?
If you have IRA statements as of the date of the marriage, the separate property portion of an IRA typically is the value of the IRA at the date of the marriage. That is, typically, both contributions that are made to the IRA during the marriage and all growth that occurs in the IRA during […]
I entered an IRA and specified regular distributions. I do not see any IRA retirement income in the year my client will retire. What happened?
Most likely, the IRA was consumed by liquidations before retirement. Click here for more information about liquidations To see if that was the case, look at Forms & Reports > More Reports > For Planners > Liquidations to Cover Negative Cash Flow. If there are any numbers in the section labeled :IRA/401k distributed," then this […]