“Third-party posts from Ed Slott’s IRA Blog:”
IRA BLOG
RMD RULES FOR IRA BENEFICIARIES: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Question: Hi, My last remaining parent, my mother, passed away in May 2017, and my younger brother and I inherited her IRA (equally split into inherited IRA accounts). We were of the understanding we could...
ARE 529-TO-ROTH IRA ROLLOVERS SUBJECT TO STATE TAX?
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Previous Slott Report articles have covered the new SECURE 2.0 provision allowing 529 funds to be rolled over to Roth IRAs. We’ve reported that there are several unanswered questions concerning this new...
REQUIRED MINIMUM DISTRIBUTIONS AND ELIGIBLE DESIGNATED BENEFICIARIES: TODAY’S SLOTT REPORT MAILBAG
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport QUESTION: I know you can delay taking your first required minimum distribution (RMD) until April 1 of the year after you turn age 73. If you convert your entire IRA into a Roth before that date, but...
WHAT IS RETIREMENT? FANTASY VS. REALITY
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport Three times a week, every week, we add to the Slott Report. Two article entries and a mailbag. All factual, measurable information. “This is what to consider when you name a trust as your...
HOW SECURE 2.0 IMPACTS COMPANY PLAN IN-SERVICE WITHDRAWALS
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Retirement plan funds are designed for retirement, but Congress continues to make it easier for employees to pull out those funds while still working. The SECURE 2.0 law adds several new in-service...
HIGHER EDUCATION AND BACKDOOR ROTH CONVERSIONS: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Question: I have a client who is under age 59 ½ with a small traditional IRA. She wants to cash it in and use the funds for college education for her daughter. If I remember...
TAX TIME TIPS FOR IRAS
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport IRAs are an important, but often overlooked, part of your overall tax planning. As the deadline for filing 2023 tax returns approaches, it is a good time to incorporate your IRA plan...
COVERDELL ESA ACCOUNTS AND FIRST RMD YEAR DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Question: Hi Ed, I have Coverdell ESA accounts for my 5 grandchildren. My question is whether Coverdell ESAs can be treated the same as 529 plans under the new law when it comes to unused funds being...
WHAT ARE THE RULES FOR 401(K) IN-SERVICE WITHDRAWALS?
Congress has determined that 401(k) and other company plan funds, with certain exceptions, should be saved for retirement. For that reason, it has imposed strict restrictions on the ability of employees to withdraw from these plans while still working. Plans must...
ROTH CONVERSIONS AND QUALIFIED CHARITABLE DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport QUESTION: How many times in one year can a person do a Roth conversion? Thank you. ANSWER: A person can do an unlimited number of Roth conversions in a year. Roth conversions do not count against the...
GHOST VS. 5-YEAR: THE CALENDAR DICTATES
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport Ever since the SECURE Act created a 10-year payout rule for most IRA beneficiaries, that topic has garnered the bulk of conversation. This is understandable. Not only was the 10-year rule a brand-new...
Weekly Market Commentary
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport We’re getting lots of questions about the SECURE 2.0 change that allows annuitized IRA annuities to be aggregated with non-annuity IRA funds for required minimum distribution (RMD) purposes. This change...
529 PLANS AND QUALIFIED CHARITABLE DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport QUESTION: I have been funding a 529 account for over 15 years and no longer need to add deposits. Could I change the beneficiary to myself and then convert to a Roth IRA, assuming I have met the...
NEW ROTH PROVISIONS EFFECTIVE IN 2024
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport When the bell dropped in Times Square last Sunday night, a bunch of new provisions from the SECURE 2.0 legislation kicked in. This article will focus on the Roth-related changes that are effective in 2024....
ROTH CONVERSIONS AND INHERITED IRAS: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Question: I have a traditional IRA with a portion being nondeductible contributions. The last nondeductible contribution I made was in 2009. and I have my Form 8606 showing the...
SECURE 2.0 RELAXS RETROACTIVE SOLO 401(K) RULES
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Thinking of opening up a new solo 401(k) plan for 2023? Thanks to SECURE 2.0, you don’t have to rush to get it done by year end. A solo 401(k) is an excellent retirement savings vehicle for self-employed...
BAD SANTA & THE GRINCH OFFER HORRIBLE IRA ADVICE – PART 2
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport The investment advisory firm of Bad Santa & the Grinch continues to disseminate misinformation and lousy, no good, rotten-to-the-core IRA advice. As we saw in “Bad Santa & The Grinch Offer...
TURNING BACK THE CLOCKS AND REVISITING THE ROTH IRA FIVE-YEAR CLOCKS
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport A few weeks ago, many of us were required to turn back our clocks one hour and say goodbye to daylight savings time. And with that change came the usual reminder to change the batteries in our smoke...
THE FIVE-YEAR RULE AND RMDS: TODAY’S SLOTT REPORT MAIBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Question: In 2020 and 2021, when I was over 65 years old, I converted some of my IRA into a Roth IRA. Does the five-year rule still apply to me, or can I now draw out all of the...
ONE BENEFICIARY, THREE IRAS, THREE DIFFERENT PAYOUT RULES
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport An advisor called and said his 75-year-old client had just passed away. He had questions about the payout rules applicable to the three IRAs the client left behind: a traditional IRA, a Roth IRA, and...
THE PRO-RATA RULE AND MINOR IRA BENEFICIARIES: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Question: Dear Mr. Slott, I made $40,000 additional non-deductible (after taxes) contributions to my IRA many years ago. I have filed IRS Form 8606 every year informing the IRS of the contributions....
ROTH IRA DISTRIBUTION ORDERING RULES – KEEP IT SIMPLE
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport Within the 400-page Ed Slott advisor training manual, we include a basic chart that outlines the Roth IRA distribution ordering rules and the availability of those specific dollars. When presenting...
THE BACK-DOOR ROTH STRATEGY AND SPOUSAL BENEFICIARIES: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Question: I earn too much money and can’t do a Roth IRA. I have heard about the back-door Roth IRA strategy for those who earn more than the allowable contribution for the Roth IRA...
THE STILL-WORKING EXCEPTION AND SPOUSAL ROLLOVERS: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Question: I have a client who just retired at age 80. He has $800,000 in his 401(k) plan which is being rolled over to an IRA. Does he have to take an RMD this year based on the...
HOW TO LOSE AN INHERITED IRA AND GAIN A BIG TAX BILL
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Did you inherit an IRA from someone who is NOT your spouse? This is not uncommon. Maybe you inherited from a sibling or a parent or a friend. If this is your situation,...
NON-SPOUSE BENEFICIARIES AND ROTH IRA DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport QUESTION: On September 6th in a piece titled, “Rules for Inherited IRAs that May Surprise Nonspouse Beneficiaries,” Sarah Brenner from Ed Slott and Company wrote, “If you inherited the IRA funds in...
TOP 10 IRA “POPULAR CONFUSIONS”
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport The Ed Slott team answers thousands of IRA and work plan questions annually - emails, phone calls, in-person conversations, webinars, Q&A programs and texts. We accommodate all members of the Ed...
INHERITED IRA AND ROTH IRA RMD RULES: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Question: I’m age 76. My brother died in December 2022 at 84. Do I take required minimum distributions (RMDs) for the inherited account based on my age or on my brother’s age at death? Answer: Since you’re...
ANOMALIES AND EXCEPTIONS
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport As already-complicated IRA rules spiral further into an abyss of confusion, it comes as no surprise that irregularities exist. Up is down and left is right. Green means stop, red means throw your...
WHAT ARE THE RULES FOR PENALTY-FREE HIGHER EDUCATION EXPENSE WITHDRAWALS?
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport If you’re facing the unpleasant prospect of paying college bills for the fall semester, you may be thinking of tapping into your retirement savings to help with the costs. If you’re under age 59 ½,...
INHERITED IRAS AND RMDS: TODAY’S SLOTT REPORT MAILBAG
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Question: Greetings, If I have the beneficiaries on my IRA listed as my wife (50%) and two children over 21 (50%), is my wife still able to move her half of the IRA into her existing IRA when I...
WHAT YOU NEED TO KNOW IF YOU NAME MINOR AS YOUR IRA BENEFICIARY
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Are you thinking of naming a child or grandchild as your IRA beneficiary? With the start of the SECURE Act in January 2020, the rules for inherited IRAs were upended....
ROTH CONVERSION CONFUSION – TAXES WITHHELD WHEN UNDER 59 ½
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport There is no doubt we have written about this topic in past Slott Report entries. Possibly many times. There is also no doubt that people continue to make this same error, over and over...
INHERITED IRAS AND ROTH CONVERSIONS: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: I inherited an IRA in 2022 upon the passing of my father after he had already started his RMDs. I took a 2023 RMD from it in May 2023. Your website says I’m not...
Q&AS ON RECENT IRS RMD RELIEF
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport On July 17, we reported that the IRS had issued required minimum distribution (RMD) relief in two situations. First, the Service excused 2023 RMDs for certain IRA (and plan) beneficiaries subject to...
BACKDOOR ROTH IRAS AND BENEFICIARY RMDS: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: Hi, I have a question regarding solo 401(k)s. Does a solo 401(k) contribution affect the pro-rata rule when considering a backdoor Roth IRA? Best, James Answer: Hi James, No. 401(k) assets...
DEATH OF AN IRA BENEFICIARY – BEFORE CLAIMING THE ACCOUNT
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport When an IRA owner dies, we look to the beneficiary form to determine who should receive the IRA funds. After death, there is a transition process as assets are moved into an inherited...
INHERITED IRA RMD REQUIREMENTS AND ROTH 401(K) RULES: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: Hello, I am involved with a traditional non-spouse inherited IRA that was passed from my mother to myself and two siblings in 2022. My mother was 84 when she passed and was taking RMDs. I...
THE TWO TYPES OF 457(B) PLANS
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Some of you are aware that there are two types of section 457(b) retirement plans – governmental plans for state and local municipal workers, and “top hat” plans for highly-paid and managerial...
IF THE IRS ASK QUESTIONS, CAN YOUR ACTIONS BE JUSTIFIED?
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport A couple of years ago I was asked what the tax consequences are when a Roth IRA is split in divorce. After a pause, I answered honestly: “I have no idea…but will find out.” In fact, there is no...
FIVE QDRO Q&AS
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Although the U.S. divorce rate is in a steady decline, it’s still one of the highest in the world. And with divorces often come QDROs – “qualified domestic relations orders.” A QDRO is a state court...
INHERITED IRAS AND REAL ESTATE IN IRAS: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: I inherited an IRA from my brother back in 2019. I have been taking required distributions from it each year. Can I do a qualified charitable distribution from this...
SPOUSAL ROLLOVERS
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Probably the biggest advantage that a spouse beneficiary of an IRA has over other beneficiaries is the ability to do a spousal rollover. Only a spouse beneficiary can do a...
SIMPLE IRA RMDS AND YEAR-OF-DEATH RMDS: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: If a 76-year-old is working full time and has a SIMPLE IRA and she does not own any of the company that sponsors the SIMPLE IRA, does she still have to take a RMD (required minimum...
INHERITED IRAS AND SIMPLE IRA CREDITOR PROTECTION: TODAY’S SLOTT REPORT MAILBAG
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Question: In 2021, my wife inherited an IRA from her sister who was 4 years younger. My wife therefore is an EDB (eligible designated beneficiary). Her sister was 66 years old at date of...
A BETTER WAY OF UNDERSTANDING THE ONCE-PER-YEAR ROLLOVER RULE
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport The “once-per-year” rollover rule is one of those IRA rules that has serious tax consequences and cannot be fixed if violated. Breaking the rule results in a taxable distribution and a 10% early...
HSA BENEFITS THAT MAY SURPRISE YOU
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport You have likely heard of Health Savings Accounts (HSAs), and you may even understand the basics of how an HSA works. These accounts are really not too complicated. If...
INHERITED ROTH IRA RMDS AND MERGING IRAS: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: Hello, Are you required to take out RMDs (required minimum distributions) on an inherited Roth IRA? The original owner was 82 when he passed away. The funds were left to his nephew, so I...
MANDATORY ROTH CATCH-UP CONTRIBUTIONS REQUIRED FOR 2024
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport One of the more controversial provisions of the new SECURE 2.0 law concerns 401(k) catch-up contributions. Most 401(k) plans – as well as 403(b) and governmental 457(b) plans – permit employees...
THE 3 IRA BENEFICIARY CATEGORIES – AGAIN AND AGAIN AND AGAIN
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport This past week the Ed Slott team hosted another successful conference for our Elite IRA Advisor Group members. Well over 300 advisors from across the country descended on Washington D.C. for...
HOW THE RETIREMENT PLAN COMPENSATION LIMIT WORKS
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport It’s certainly not a bad problem to have. But employees with very high compensation cannot have their retirement plan benefits based on all of their pay. Instead, the tax code allows only compensation...
THE 5-YEAR RULE FOR CONVERTED ROTH IRA FUNDS
By Sarah Brenner, JD Director of Retirement Education If you recently converted your traditional IRA to a Roth IRA and you under 59 ½, you will want to know about the five-year rule for penalty-free distributions of converted funds from your Roth IRA. Many people are...
DO SPOUSES HAVE ANY RIGHTS TO RETIREMENT PLAN ACCOUNTS?
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport One important way that IRAs differ from company retirement plans is with respect to spousal financial rights. Most married IRA owners do not need spousal consent before designating a beneficiary other...
ROTH IRA VS. ROTH 401(K)
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport More 401(k) plans are starting to offer Roth options. If you now have this option, you may be wondering what the difference is between a Roth IRA and a Roth 401(k). Which...
5 REASONS TO OPEN A ROTH IRA IMMEDIATELY!
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Time is running out! The tax filing deadline is Tuesday, April 18. Why is this important? Because that is the last day an IRA can be opened and/or funded for the previous year. Even if a...
QUALIFIED CHARITABLE DISTRIBUTIONS AND ROTH IRAS: TODAY'S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: I have been told that QCDs are not allowed from local and state government 457(b) plans. I have looked at the accountant’s IRS manual, websites etc. and I can’t find...
5 HSA RULES YOU NEED TO KNOW
Health Savings Accounts (HSAs) are rapidly growing in both size and in number. These accounts offer deductible contributions and tax-free distributions for qualified medical expenses. An HSA can be a valuable tool not only for paying for medical expenses but also for...
FACTS OF THE QUALIFIED HIGHER EDUCATION IRA PENALTY EXCEPTION
Higher education expenses can be steep. Fortunately for those under the age of 59 ½ who need to dip into retirement savings to cover these costs, there is an exception to the 10% early withdrawal penalty. Before tapping your IRA, be sure to understand the fundamentals...
ROTH CONVERSION DEADLINE AND HSA COVERAGE: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: In a recent blog post, you said that the deadline for contributing to a Roth IRA for 2022 is April 18, 2023. Does that include converting a traditional IRA to a Roth? Answer: You can make a...
VESTING IN COMPANY PLANS AND NEW IRS FORFEITURE RULES
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport When you leave your job and aren’t fully vested in your company plan account, the plan will forfeit your unvested portion. Recently, the IRS issued new guidance clarifying the forfeiture rules....
FIVE FACTS YOU NEED TO KNOW ABOUT FDIC INSURANCE AND YOUR IRA
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport The Federal Deposit Insurance Corporation (FDIC) has been in the news recently as bank failures have made headlines. The FDIC is an independent agency created by Congress. It...
3 TIPS FOR MAKING YOUR 2022 IRA CONTRIBUTION
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Tax season is in full swing. That means that the 2022 tax-filing deadline is not far away. Are you considering making a 2022 IRA contribution? Time is quickly running out. Here...
EMPLOYER PLANS AND THE 5-YEAR RULE: TODAY'S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: My daughter had two employers during 2022. The first employer offered a matching 401(k) plan in which she enrolled. The second employer (her current employer) offers...
BLOODY MARY AND A 401(K)
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Spring break. Warm breezes and ocean waves and fancy cocktails are top of mind. The aroma of coconut suntan lotion entwined with barbecue smoke floats on salty air. And when morning light...
CAN I REACH MY 401(K) FUNDS WHILE STILL WORKING?
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport We continue to get questions about the ability of employees to withdraw from 401(k) plans while still working. The tax code includes certain restrictions on these in-service withdrawals. Plans must...
ROTH CONVERSIONS AND INHERITED IRAS: TODAY'S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: Hi, I’m looking forward to the July workshop in Boston but hoping you can help with this question now. What happens if an account holder who is over age 59 ½ does a...
3 TIPS FOR MAKING YOUR 2022 IRA CONTRIBUTION
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Tax season is in full swing. That means that the 2022 tax-filing deadline is not far away. Are you considering making a 2022 IRA contribution? Time is quickly running out. Here...
THE INTERNET SAID SO
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport People on TikTok create investment advice videos? And I’m supposed to trust whatever this talking head is telling me? No chance. Of course, the person on TikTok could hold a number of higher...
INHERITED IRA 10-YEAR RULE AND DISABLED CHILD AS ELIGIBLE DESIGNATED BENEFICIARY: TODAY’S SLOTT REPORT
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: Hello, I have an inherited IRA which falls under the 10-year rule. I understand that the IRS has tried to clear up the 10-year RMD (required minimum distribution) confusion but I am still...
SECURE 2.0 GLITCHES AND UNANSWERED QUESTIONS
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Considering that it made 92 new IRA and retirement plan changes and is 357 pages long, it’s not surprising that the new SECURE 2.0 law has several unintended drafting errors and lots of unresolved...
NAMING A MINOR AS YOUR IRA BENEFICIARY
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport If you want to leave your IRA to an adult, you simply name that person on the IRA beneficiary form. Unfortunately, when it comes to minors, it is not that easy. When a minor...
EDUCATION SAVINGS ACCOUNTS AND INHERITED IRAS: TODAY'S SLOTT REPORT MAILBAG
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Question: Can an Education Savings Account (ESA) be rolled into a Roth IRA under the recently enacted SECURE 2.0? 529 plans clearly can - beginning in 2024 - but I have found no reference to...
RBD – PROACTIVE SALLY AND OBLIVIOUS JERRY
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Last week the Ed Slott team hosted another highly successful and sold-out 2-day advisor training program at Caesar’s Palace in Las Vegas. Over 250 financial professionals from across the...
SECURE 2.0 ALLOWS RETROACTIVE SOLO 401(K) PLANS WITH ELECTIVE DEFERRALS
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport The new SECURE 2.0 law fixes a glitch that has made it difficult for new solo 401(k) plans to be opened up retroactively for a prior year. A solo 401(k) plan is a great retirement savings vehicle for...
RMDS AND EMPLOYER PLAN CONTRIBUTIONS: TODAY'S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: I am interested in your interpretation of the RMD (required minimum distribution) rules using the following facts: Original IRA owner’s DOB is 1/21/29 Original IRA...
SECURE 2.0 ELIMINATES PENALTY ON NIA
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport SECURE 2.0 is a mammoth piece of legislation that contains over 90 provisions that affect retirement accounts. While many of these provisions are not game changers, they still...
EDBS HAVE A CHOICE: STRETCH VS. 10-YEAR
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport By now, most are aware the SECURE Act created a new class of beneficiaries called “eligible designated beneficiaries” (EDBs). This group includes surviving spouses, minor children of the...
QCD REPORTING AND THE ONCE-PER-YEAR ROLLOVER RULE: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: Hi, Thank you for all the helpful insight on retirement. I wish I heard about your website earlier. I turned 72 last year and followed your advice on QCDs (qualified charitable...
HOW THE IRS CONTRIBUTION LIMITS WORK WHEN YOU’RE IN TWO PLANS
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport How much can you contribute when you’re in two different retirement plans at the same time or at different times in the same year (e.g., after changing jobs)? The answer is complicated because...
5 THINGS TO KNOW WHEN MAKING A 2022 ROTH IRA CONTRIBUTION
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Tax season is upon us. This is the time when you might be thinking about contributing to a retirement account. You may be interested in the Roth IRA, which offers the promise...
INHERITED IRAS AND ROTH CONVERSIONS: TODAY'S SLOTT REPORT MAILBAG
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport QUESTION: I just inherited my spouse’s inherited IRA (he got it from his father). He (my husband) was already taking required minimum distributions (RMDs) based on his own single life...
AGE 50 EXCEPTION QUESTION
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport When IRA or retirement plan assets are withdrawn prior to age 59 ½, an early distribution penalty of 10% applies - in addition to any taxes owed on the distribution. However, there are...
SECURE 2.0 ALLOWS ROTH EMPLOYER CONTRIBUTIONS IN 401(K) PLANS
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Up to now, employer contributions to 401(k) (and other plans) had to be made to pre-tax accounts. One of the SECURE 2.0 changes already in effect allows employer contributions to be made to Roth...
SECURE 2.0 MODIFIES RULES FOR SPECIAL NEEDS TRUSTS
By Sarah Brenner, JD IRA Analyst Follow Us on Twitter: @theslottreport The SECURE Act changed the game for inherited IRAs. For most beneficiaries, the stretch IRA is gone and has been replaced by the 10-year payout rule. However, the SECURE Act carved out some rules...
LIFETIME AND INHERITED IRA RMD RULES: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: If a person turned 72 in 2022, and died before starting her traditional IRA RMDs (required minimum distributions), must her three children take an RMD (based on their ages) in 2022 and for...
SECURE 2.0 CHANGES ALREADY IN EFFECT
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport The SECURE 2.0 Act, enacted into law on December 29, 2022, makes over 90 changes to the IRA and employer plan tax rules. If that isn’t enough, many of these provisions aren’t immediately effective and...
ROTH-O-MANIA!
By Sarah Brenner, JD IRA Analyst Follow Us on Twitter: @theslottreport SECURE 2.0 is now the law of the land and one thing is very clear. Roth-O-Mania is here! In their quest for more revenue, Congress has created more options to save with Roth accounts. These...
529 PLANS AND ROTH IRAS: TODAY'S SLOTT REPORT MAILBAG
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Question: Hello Ed, I have a question concerning Secure 2.0 pertaining to transferring “leftover” 529 plan account balances into a Roth IRA, beginning 2024. If I have no income in 2024, can I...
SECURE 2.0 ELIMINATES RMDS ON ROTH PLAN DOLLARS IN 2024
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport If a person has a Traditional IRA and is of the age when lifetime required minimum distributions (RMDs) apply, then that person must withdraw a portion of that account annually. The amount to...
SECURE 2.0 ALLOWS ROLLOVERS OF 529 FUNDS TO ROTH IRAS
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport We’re getting a lot of questions about the SECURE 2.0 provision allowing tax-free rollovers from 529 plans to Roth IRAs. Although this new rollover opportunity sounds exciting, there are a number of...
QCDS AND 60-DAY ROLLOVERS: TODAY'S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: I am confused regarding the requirements for making a qualified charitable distribution. Is it necessary for the donation to be sent directly from the financial...
WHO CAN DELAY THEIR RMD UNDER SECURE 2.0?
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport One of the provisions of the recently passed SECURE 2.0 that has gotten the most attentions is the one that allows some retirement account owners to delay their required...
NEW SECURE 2.0 10% PENALTY EXCEPTIONS: DOMESTIC ABUSE & FINANCIAL EMERGENCIES
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport SECURE 2.0 includes a number of new ways a person under the age of 59 ½ can access retirement account dollars while avoiding the 10% penalty. Historically, there have been more than a dozen...
RMDS UNDER SECURE ACT 2.0: TODAY'S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: On reading your SECURE 2.0 information, a revised RMD (required minimum distribution) to age 73 was mentioned. Prior to this new legislation, 72 was the RMD age. If this is in effect now in...
SECURE 2.0 CHANGES THAT APPLY TO WORKPLACE PLANS
By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport In our December 28 and January 2 Slott Report articles, we focused mostly on the provisions of the new SECURE 2.0 law that apply to IRAs. But many of the law’s changes are directed towards workplace...
TOP TAKEAWAYS FROM SECURE 2.0 FOR 2023
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport The year 2023 has arrived. It is a new year, and we have new rules for retirement accounts thanks to SECURE 2.0 which Congress passed in the waning days of last year. SECURE...
REQUIRED MINIMUM DISTRIBUTIONS AND SIMPLE IRAS: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport QUESTION: I have an inherited IRA from my father. He was born 9-27-1927 and died 7-19-2019 at age 91. I was born 12-13-1952 and my age is 70. Two on-line calculators offered by...
RANDOM REAL-LIFE QUESTIONS AND ANSWERS
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Each day we receive dozens of retirement-related questions from advisor members of the Ed Slott Elite IRA Advisor Group. Conversations range from incredibly complex to obscure to, “I just need...
HAPPY HOLIDAYS! CONGRESS GIFTS SECURE 2.0
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport This holiday season Congress has given us SECURE 2.0. With no time to spare to avoid a government shutdown, they passed the $1.7 trillion Consolidated Appropriations Act of...
THE 10-YEAR RULE AND ROTH CONVERSIONS: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: Ed, I started reading your newsletter and I wondered what you thought of IRS Notice 2022-53. It made sense to me to the point where it said that "the beneficiary of...
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