Employee Benefits Blog

Posts tagged retirement

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Use of Self-Directed IRAs for Alternative Investments

Clients regularly ask us questions regarding the use of self-directed individual retirement accounts (IRAs) for investments other than cash or publicly traded securities.  Examples of such investments include real estate and private equity investments.  While it may occasionally make sense to explore holding such investments in IRAs, there are many restrictions on such investments, and there are some potentially significant tax disadvantages in holding such investments in IRAs.  This post will briefly explore some of these issues.

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When Does An Employee “Retire” and Thus Become Required to Take Minimum Plan Distributions?

Required Minimum Distributions (RMDs) are minimum amounts that a retirement plan account owner must withdraw annually starting by April 1 of the year following the year in which he or she reaches age 70 ½.  Failure to take an RMD on a timely basis results in a penalty of 50% of the undistributed amount, unless due to a reasonable error.