March 26, 2021
The compensation cap is the maximum amount of compensation that may be taken into consideration when determining contributions to employer sponsored retirement plans, such as SEP IRAs, SIMPLE IRAs, 403(b) arrangements, qualified plans-such as 401(k)-profit sharing and pension plans..
IRC § 401(a)(17), IRC § 404(l)
The compensation cap does not apply to SIMPLE IRA matching contributions.
The 10-year rule is a distribution rule that applies to certain beneficiaries who inherit an IRA or employer-sponsored retirement plan account. Under the rule, the
The still-working exception is a rule that may allow a participant in an employer-sponsored retirement plan to delay required minimum distributions (RMDs) beyond the participant’s
RMD Correction window The correction window is the period during which a missed required minimum distribution (RMD) can be corrected in a way that may
Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches