Apple has made the momentous decision to move its entire retirement plan to exchange traded funds (ETFs), according to Employee Benefit News. ETFs are investment funds which track (in value) a particular index (e.g., S&P 500, Wikipedia) They are characterized by low fees and high liquidity. They have established a favorable track record compared to mutual [...]
IRA vs 401(k) – eligibility
June 10, 2012 By
Early Distributions Under Section 72(t)
April 24, 2012 By
Many people do not realize that they can begin taking distributions from their IRAs and qualified employer plan accounts without being subject to the 10% penalty on early withdrawals, even if they are younger than 59 ½ . Several exceptions exist to the rule against taking early distributions, but perhaps the most complicated and least [...]
ESTABLISHING AND MAINTAINING A SOLO 401(k) – PART I
August 24, 2011 By
A properly prepared and established Solo 401(k) Plan for your small business provides tremendous investment flexibility and countless advantages over more cumbersome retirement savings alternatives. In these times of uncertain markets, widely fluctuating investment values, and distrust of so-called financial professionals (who invariably are attempting to sell a product) one of the main advantages of [...]
Plan Asset Rule Follies
August 17, 2011 By
In our practice, we occasionally see transactions structured by other financial planners attempting to circumnavigate the Prohibited Transaction Rules found in Internal Review Code sec. 4975, by using the thresholds found in the “Plan Asset Rule.” Dept. of Labor Regs. Sec. 2510.3-101. As is typical with most prohibited transactions, these arrangements often involve the IRA [...]
