What is a Qualified HSA Funding Distribution (QHFD) ?
A Qualified HSA Funding Distribution (QHFD) , also referred to as: Qualified Funding Distribution (QFD) , HSA Funding Distribution (HFD),and Qualified health savings account (HSA) Funding
March 3, 2009
Answer
Many small business owners and https://retirementdictionary.com/definitions/participant plan participants who either sponsor or participate in https://retirementdictionary.com/definitions/simplifiedemployeepensionsepira SEP or https://retirementdictionary.com/definitions/simpleira SIMPLE IRA plans question whether or not contributions can be made to these plans after the owner or participant reaches age https://retirementdictionary.com/definitions/70andhalfage 72. The answer is yes. In fact, participants turning 72 must be allowed to continue participating. This means that participants must continue to share in employer contributions and, in the case of SIMPLE IRA plans, must be allowed to continue to make salary reduction contributions. The contributions to both SEP and SIMPLE IRA plans are made to IRAs https://retirementdictionary.com/definitions/traditionalira traditional IRAs in the case of SEPs. Note that individuals age 72 or older are not permitted to make the regular, annual contributions ($5,000 for 2011 or $6,000 if age 50 or older) to traditional IRAs, whether or not the IRA is part of a SEP plan. (See Code §219.)
Keep in mind that individuals are still required to take RMDs from these accounts, since all IRA owners must start taking RMDs once they have attained age 72.
http://www.irs.gov/pub/irs-pdf/p560.pdf Pub 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)
http://www.irs.gov/pub/irs-pdf/p590.pdf Pub 590, Individual Retirement Arrangements (IRAs)
*******This Q&A was taken from the IRS’s Summer 2008 Employee Plan Newsletter ******Update to make current with limits
A Qualified HSA Funding Distribution (QHFD) , also referred to as: Qualified Funding Distribution (QFD) , HSA Funding Distribution (HFD),and Qualified health savings account (HSA) Funding
Qualified Individual- Coronavirus-Related Distribution A qualified individual is one who is eligible to take a coronavirus-related distribution, and maybe any of the following: An individual:
A coronavirus-related distribution (CRD) is one that is permitted to be taken by qualified individuals from January 1, 2020 and before December 31, 2020. The
Tax court says that 72(t) additional tax (early distribution penalty) is not deductible. T.C. Memo. 2016-15- Robert Leon Martin v. Commissioner
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |