• IRA BLOG

  • If you have a 401(k) account or other employer sponsored retirement plan, you probably already know that a distribution before you reach age 59½ is going to be subject to a 10% penalty. One exception to the 10% early withdrawal penalty allows participants in a qualified plan to ...

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    Roth IRAs become 20 years old in January of 2018 and now hold more than $660 billion in retirement wealth, reports the Investment Company Institute (the source of the data in this article). Yet while Roth IRAs have become very popular among individuals who make annual ...

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    This week's Slott Report Mailbag looks into RMD rules and the "still-working" exception as it pertains to IRAs. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. You can find one in your area here....

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    While there is a lot of focus on the proposed tax law changes that have a target effective date of 2018, there is something we can count on for 2018, the inflation adjusted retirement account limits. There are currently no proposed changes to the following limits. IRAs The ...

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    Tax Reform and Your Retirement Account

    House Republicans took the first shot at tax reform with the release of the Tax Cuts and Jobs Act on November 2. Now it is the Senate’s turn to weigh in. Not surprisingly, the Senate’s take on overhauling the tax code looks very different than the House version. You may ...

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    Are You Taking an RMD for the First Time in 2018?

    This week's Slott Report Mailbag examines inherited IRAs and retirees taking RMDs for the first time. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: I have a client who has ...

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    60-Day Rollovers and Multiple Checks

    We continuously get questions on 60-day rollovers. Many times those questions revolve around a client receiving more than one distribution or wanting to complete the 60-day rollover with more than one distribution. Here is what you need to know. As a reminder, the ...

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    10 Things to Know About the Still-Working Exception

    Are you approaching retirement age and not looking forward to being forced to take unwanted required minimum distributions (RMDs) from your retirement account? You may be looking for a way to delay those distributions. You may have heard about the “still-working” exception, ...

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    Tax Reform Proposal Unveiled

    The much anticipated Republican proposal for tax reform has been released in the form of the Tax Cuts and Jobs Act, an over-400 page long major rewrite of the Tax Code.   It is sure to be controversial and subject to political dispute, and specific provisions are likely to ...

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    The Rules and Strategies When You Inherit an IRA From Your Spouse: This Week’s Q&A

    This week's Slott Report Mailbag looks into RMDs and spousal IRA beneficiaries. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: Hello, I need to take my RMD (Required Minimum ...

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    IRA RMD Basics for the First Year’s Distribution

    Every year more Baby boomers move toward age 70 ½ and their first required distributions from their retirement accounts. For those boomers born between July 1, 1946 and June 30, 1947, you turned 70 ½ in 2017. You now need to take your first required minimum distribution (RMD) ...

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    Stuck with the Five-Year Rule? Think Again

    If you inherit an IRA, especially if it is a larger one, you may be afraid of being stuck with the five-year distribution rule. If this rule applies, your IRA must be entirely emptied in five years which can be a serious tax hit. Fortunately, you are much less likely to be stuck ...

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    RMDs to a Trust Beneficiary of an IRA

    In the past couple of weeks, I have heard the wrong answer to the question of where required minimum distributions (RMDs) must go to a trust beneficiary from both an advisor and an IRA custodian. The advisor was dealing with a special needs trust as the beneficiary of the IRA....

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    Is Your IRA Haunted?

    It’s Halloween season! This is the time for ghosts, witches, and trick or treating. What does Halloween have to do with your IRA? You might be surprised to hear that your IRA may be haunted. How can that be? Believe it or not, actions you take, or don’t take, can haunt your ...

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    How Familiar Are You with NUA Rules? This Week’s Q&A.

    This week's Slott Report Mailbag examines NUA rules and the "still working" exception. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: I really enjoyed reading The Retirement ...

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    Inherited IRAs – When do RMDs Begin?

    We are frequently asked when required minimum distributions (RMDs) begin when an individual inherits an IRA. As with most things related to IRAs, the answer is, it depends. Year of Death RMD If a Traditional IRA owner died after their required beginning date (RBD) and did ...

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    Rothification?

    Rothification is a term that is being tossed around a lot as tax reform takes center stage in Congress. What does Rothification mean? Proposals vary but, basically, it’s the idea of eliminating tax deductions and deferrals for retirement savings and instead mandating after-tax ...

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    Are You Over 70.5 Years Old and Still Working? Take Advantage of These Benefits: This Week’s Q&A

    This week's Slott Report Mailbag looks into 403(b) plans, RMDs, still-working exceptions, and trusts. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: I have a question in regards ...

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    October Retirement Deadlines

    In a post last week, we talked about the Roth recharacterization deadline which is fast approaching. October 16, 2017 is the last date to recharacterize a 2016 Roth conversion. Another important deadline that is coming up is for trusts that became the beneficiaries of ...

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    Penalty-Free Retirement Account Distributions Now Available to Hurricane Victims

    Millions of Americans were affected by Hurricanes Harvey, Irma, and Maria. You may be one of them. If you are, there is some encouraging news. On September 29, President Trump signed H.R. 3823, the “Disaster Tax Relief and Airport and Airway Extension Act of 2017” into law. ...

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    Are You Over 70.5 Years Old and Still Working? Understand Your Options With RMDs: This Week’s Q&A

    This week's Slott Report Mailbag examines RMDs when you are still working past 70.5 years old and inheriting multiple IRAs. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: I have ...

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    A Tale of 3 Cousins and Their Inherited 401(k) Plans

    This is the story of Al, Bob and Carl. Each cousin is the non-spouse beneficiary of his father’s 401(k) plan. Their fathers worked together at the local automotive factory for their entire lives and were all covered by the same plan. The default distribution option in the plan ...

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    8 Things to Know Before the October 16 Recharacterization Deadline

    Did you convert your traditional IRA to a Roth IRA in 2016 and now you are reconsidering that move? Did you make a 2016 traditional IRA contribution and later discover the contribution was not deductible? Did you contribute to a Roth IRA, not knowing that your income was above ...

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    Do You Know All the Rules for Rolling Over a Roth 401(k)?

    This week's Slott Report Mailbag examines 401(k)s, Roth 401(k)s, and spousal beneficiary rules. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: I have been getting Ed Slott and ...

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    Divorce, IRAs, and a Twist

    Many times when individuals divorce the IRA is split between the spouses. This is done through the divorce decree or separation agreement. An IRA is never split using a qualified domestic relations order (QDRO). That is only used for splitting employer plans, such as 401(k)s....

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    What If You Could Pay Health Care Costs in Retirement with Tax-Free Dollars?

    As medical expenses continue to increase, planning for them in retirement takes on greater importance.  One approach is to shift thinking of the Health Savings Account (HSA) as an account to defray medical expenses annually to an account with pre-tax dollars and tax-free ...

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    How Your Inherited IRA is Taxed

    Have you inherited an IRA? What type of IRA is it? Your answer will matter a lot when it comes to your tax bill. Inheriting a traditional IRA will have very different tax consequences than inheriting a Roth IRA. Consider the following example. Let’s say Tom named his three ...

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    Retirement Plan Checks and 60-Day Rollovers

    Generally, when you receive a check from your IRA custodian or employer plan, you have 60 days to rollover the funds to another retirement account, either an IRA or an employer plan. As with most retirement plan rules, this rule comes with two exceptions – one good and one bad....

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    23 BBQ and Grilling Tips and Tricks You Need to Know

    It doesn’t matter if it’s Memorial Day, the Fourth of July, or the dead of a blizzard-plagued winter…Millions of meat lovers across North America are now venturing outdoors to grill succulent pork, beef, chicken, and other delicious types of animal flesh. Mmmmm! The ...

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    What a Year Means When it Comes to Your IRA Rollover

    The once-per-year rollover rule says that you can only roll over one IRA distribution from all of your IRAs (both traditional and Roth) in a one-year period. This is a tricky rule and many taxpayers have run into trouble with it. One area that can be very confusing is determining...

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    Avoid Penalties and Fees by Learning These Rules: Today’s Q&A Mailbag

    This week's Slott Report Mailbag looks into QCDs, RMDs, Rollover IRAs and Recharacterizations. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: I put $5,500 in my new Roth IRA for ...

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    Options for a Spouse Beneficiary – Remain a Beneficiary or Retitle to Your Own Account?

    Warning! The options described here are for spouse beneficiaries named on the beneficiary forms of IRA accounts. Non-spouse beneficiaries and spouses who inherit through an estate have a different sets of rules. Your spouse has died and you are named the beneficiary of their ...

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    5 Retirement Savings Strategies for Younger Workers

    No one can argue that the millennial generation faces big challenges when it comes to savings. Younger workers are dealing with record setting student loan debt, high housing costs and stagnant wage growth. It’s hard to save for retirement when you are worried about the next ...

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    Avoid Accidentally Making a Prohibited Transaction: This Week’s Q&A

    This week's Slott Report Mailbag examines TDAs, IRAs, and prohibited transactions.  As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: I am a retired New York City educator who has a...

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    Hurricane Harvey Relief from IRS and the Department of Labor

    Here is a preview of what might come if Hurricane Irma hits the U.S. IRS and the Department of Labor (DOL) have made several announcements regarding various tax and retirement plan rules and deadlines that have been modified to allow relief for Hurricane Harvey victims. The ...

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    Want to Donate to Harvey Victims? Consider a QCD

    As the flood waters slowly recede in the Houston area, many people are asking themselves how they can help the victims of Hurricane Harvey. For those who have IRAs and are charitably inclined a Qualified Charitable Distribution (QCD) may be one way you can help. QCD Rules ...

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    Do You Know What to Do When You Inherit an IRA? This Week’s Q&A.

    This week's Slott Report Mailbag looks into QCDs, RMDs and inherited IRAs. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: Good afternoon. I have a quick question. Can a Roth ...

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    7 Things Your IRA Custodian Won’t Tell You

    It is important to know what your IRA custodian will tell you and what they will not or cannot tell you. The I in IRA stands for individual and many times it is up to the individual to know things or keep track of them. 1. 60-Day Rollovers – An IRA custodian will not remind ...

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    15 Things You Need to Know About ESAs

    Education is expensive. If you have children and you are concerned about how you will pay the school bills, you know that you cannot afford to overlook any possible option that may help you save. One savings tool that is frequently overlooked is the Education Savings Account ...

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    You Must Play by the Rules with RMDs and QCDs: Q&A Mailbag

    This week's Slott Report Mailbag examines Roth IRA transfers, QCDs and RMDs. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: Dear Ed Slott and Company, Thank you for helping me ...

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    Paying for College – Should You Use Your IRA Funds?

    It’s back to school time and the costs for college are quickly mounting. Where is the money going to come from? Many times individuals look to their retirement funds to pay higher education expenses. Can this be done and is it a smart move? There is an exception to the 10% ...

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    Close is Not Enough When It Comes to the 10% Penalty

    A well-known quote attributed to baseball great, Frank Robinson, says “Close doesn't count in baseball. Close only counts in horseshoes and hand grenades.” In a recent Tax Court Case, David D. Pritchard et ux. v. Commissioner; T.C. Memo. 2017-136 (July 10, 2017),the Court ...

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    Is There a Way Around the 10% Early Distribution Penalty? This Week’s Q&A

    This week's Slott Report Mailbag looks into the one-rollover-per-year rule, RMDs and the 10% early distribution penalty. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: A couple ...

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    Say Goodbye to the myRA Account

    On July 28, the Treasury Department announced that it was ending the myRA program. The Department issued a very brief statement saying that as part of the Administration’s effort to assess existing programs and promote a more effective government it was determined that this ...

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    Your NUA and Required Beginning Date Questions Answered: This Week's Q&A

    This week's Slott Report Mailbag examines NUA and the required beginning date (RBD) for taking an RMD.  As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: Hello and thank you in ...

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    Back to School? 10 Things You Must Know about Using your IRA for Educational Expenses

    The arrival of August means that it’s back to school time! This means it is time for new school supplies and other bigger expenses. Are you thinking about using your IRA to pay that large tuition bill? The rules can be complicated. Here are 10 things you will want to know: ...

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    What’s Your IRA Worth?

    Many IRA owners invest in assets other than the usual stocks, bonds, cash, and mutual funds. In fact, the tax code allows for IRAs to invest in just about anything out there except for collectibles, life insurance, and S-corporation stock. But when you invest in those “other ...

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    5 NUA Facts That May Surprise You

    You may have heard of the Net Unrealized Appreciation (NUA) tax break. This is a special rule that allows you to qualify for capital gains treatment on distributions of appreciated employer stock from your employer plan. With the market doing well, now may a be a time when this ...

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    Don’t Inherit a Mess When Your Spouse Passes Away: This Week’s Q&A

    This week's Slott Report Mailbag looks into inherited IRAs, spousal rollovers, and 401(k)'s.  As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: Dear Mr. Slott, I am 83 years old ...

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    Inheriting an Inherited IRA

    What are the rules when you inherit an inherited IRA? We get this question frequently. Let’s consider what happens when using designated beneficiaries. Jim dies and names Mike as his beneficiary on the beneficiary form. Five years later Mike dies and has named Phyllis, who ...

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    The 10% Penalty Exception Quiz

    Retirement plans are intended to be used for retirement. However, sometimes life gets in the way and you need to tap those funds early. Generally, when you take a distribution from your retirement plan prior to reaching age 59 1/2, you will be hit a with a 10% early distribution ...

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    When You Want to Transfer 401(k) Funds from a Former Employer: This Week’s Q&A

    This week's Slott Report Mailbag looks into IRA contributions and rolling over 401(k) assets from former employers.  As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: My husband ...

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    Hardship and Retirement Distributions – No Free Pass

    A very common mistake on the part of IRA owners and plan participants is thinking that distributions taken because of their financial difficulties are tax and penalty free. Hardship Withdrawals There is no hardship withdrawal from an IRA. You have access to your IRA funds ...

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    Why Your Kids Don’t Want Your HSA

    Do you have an HSA? Have you thought about what will happen to those funds after you are gone? You may be surprised. At your death, any funds remaining in your HSA are payable to the beneficiary you name on the account. If your spouse is your beneficiary the news is good. If ...

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    Don’t Make the Same Mistakes These Advisors Made: This Week’s Q&A

    This week's Slott Report Mailbag looks into inherited SEP-IRAs, 403(b)s and inherited IRAs. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: I attended a past seminar and was ...

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    Five Things to Consider When Researching Retirement Questions on the Internet

    The internet can be a blessing and it can be a curse. It is a fantastic place to do research on almost anything, but is the information you find current and accurate? Here are five things to consider when doing internet research into retirement questions. Check the Date ...

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    5 Strategies to Reduce RMDs

    Nothing lasts forever. This includes tax deferral on your IRAs. Eventually, Uncle Sam is going to want his share and will require funds to come out of these accounts. That is when required minimum distributions (RMDs) must begin. What if you don’t need the money? What if you ...

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    Taxes Can Be Hefty If You Make These Rollover Mistakes

    This week's Slott Report Mailbag looks into taking RMDs from multiple accounts, 60-day rollovers and the once-per-year rollover rule.  As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question:...

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    IRA Distribution Basics – Taxation of Distributions

    Most IRA accounts hold pre-tax contributions and rollover amounts from employer plans. For purposes of this blog, I am going to assume that there are no after-tax amounts held in any IRA, including SEP and SIMPLE IRAs. IRA distributions where the check is made payable to the ...

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    10 Things You Must Know about HSAs

    As the summer heats up, healthcare remains a hot topic. Will the ACA survive? Will Congressional Republicans succeed in repealing and replacing it? As we reach July these questions remain unanswered. One thing that is clear, however, is that Health Savings Accounts (HSAs) are ...

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    Questions about Your Inherited IRA? This Week’s Mailbag Q&A

    This week's Slott Report Mailbag looks into inherited IRAs, RMDs, and NUAs. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: I have a question about a spouse inheriting from her ...

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    Six Things to Know About the Year-End Account Balance Used for RMDs

    1. General Rule As a general rule, the account balance used for calculating required minimum distributions (RMDs) is the prior year-end account balance, with no adjustments. For example, if you are calculating an RMD for 2017 you would use the 2016 year-end account ...

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    Do You Know When the Pro-Rata Rule Applies? This Week’s Q&A Mailbag

    This week's Slott Report Mailbag looks into direct rollovers, Notice 2014-54, the pro-rata rule and NUAs.  As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: Hello, I have attended ...

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    Once-Per-Year Rollover Rule – The Exceptions to the Rule

    As with most IRA rules, there are exceptions to the once-per-year rollover rule. The rule applies to IRA-to-IRA and Roth IRA-to-Roth IRA 60-day rollovers. Just to be clear, an IRA rollover occurs when a check is issued by the IRA or Roth IRA custodian that is payable to the ...

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    Once-Per-Year Rollover Scenarios – What’s Ok and What’s NOT Ok

    The once-per-year IRA rollover rule sounds pretty easy to understand. You may only do one IRA-to-IRA (or Roth IRA-to-Roth IRA rollover) per year (365 days). However, there are many ways it can go wrong. Consider the following two scenarios. One involves multiple distributions and...

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    Avoid 60-Day Rollover Mistakes: This Week’s Q&A

    This week's Slott Report Mailbag looks into 60-day rollovers, IRA withdrawals, and NUAs.  As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: A few weeks ago, I withdrew money from my ...

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    Quiz Yourself With These IRA Questions!

    After you’ve answered the questions below, scroll down to see the answers and see how well you know your stuff! 1) Of Roth IRAs, Roth 401(k)s and inherited Roth IRAs, which, if any, are subject to required minimum distributions? 2) Technically speaking, what does IRA ...

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    The High Cost of IRA Mistakes

    So you think you don’t need/can’t afford an advisor? Have you considered the cost of making IRA mistakes? Even seemingly simple transactions are subject to rules and restrictions under the tax code. Did you contribute too much by mistake? This mistake cannot be corrected by ...

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    Calculating RMDs with Multiple Beneficiaries: This Week’s Q&A

    This week's Slott Report Mailbag looks into calculating RMDs with multiple beneficiaries and inheriting IRAs. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Question: Good afternoon. I ...

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    The 10% Penalty and Converted Funds - Five Things You Need to Know

    The Roth IRA rules can be complicated. One area that is especially complex is understanding how the 10% penalty applies to converted Roth IRA funds. Here are five things you need to know if you already have converted funds in your Roth IRA or if you are just trying to decide ...

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    America’s IRA Experts are in Las Vegas!

    Greetings Slott Report readers! This week, Ed and I are in Las Vegas for the first ever AICPA Engage Conference. Engage has taken some of the biggest (and in my humble opinion, best) AICPA conferences, such as the Advanced Personal Financial Planning Conference and the ...

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    This Week’s Q&A: Is Roth Conversion Right for Everyone?

    This week's Slott Report Mailbag looks at converting a traditional IRA to a Roth IRA, as well as making Roth contributions in the year of retirement.  As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and ...

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    Important Ages in Retirement Planning

    Age 50 Catch-up contributions for most retirement plans and IRAs can be made beginning in the year you are going to turn age 50. The only plan that does not allow catch-up contributions is the SEP IRA. The following are the catch-up limit amounts. IRA/Roth IRA  $1,000 ...

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    How a Roth 401(k) is Different than a Roth IRA

    Roth 401(k)s and Roth IRAs have a lot in common. Both offer the ability to make after-tax contributions now in exchange for tax-free earnings down the road if the rules are followed. However, there are some important differences between the two plans that you will want to ...

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    Inherited an IRA with Missed RMDs? This Week’s Q&A

    Inherited an IRA with Missed RMDs? This Week’s Q&A This week's Slott Report Mailbag looks into missed RMDs, inherited IRAs, and QDROs.  As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. ...

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    3 Ways to Decimate a Retirement Account in a Flash

    3 Ways to Decimate a Retirement Account in a Flash 1) Missing the 60-day Rollover Window If you want to move your retirement account from one institution to another, you can do it one of two ways; directly or indirectly. Moving your account directly is the preferred way ...

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    Tax-Free Roth IRA Conversions?

    Tax-Free Roth IRA Conversions? We received many questions this past tax season about Roth IRA conversions that were supposed to be tax-free, but were not. Here is the scenario. Pam is eligible to make an IRA contribution but is not eligible to deduct it. She also is not ...

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    Have You Faced This Dilemma with Spousal Contributions? This Week’s Q&A

    Have You Faced This Dilemma with Spousal Contributions? This Week’s Q&A This week's Slott Report Mailbag looks into IRA beneficiaries, Roth IRAs, and spousal contributions. As always, we recommend you work with a competent, educated financial advisor to keep your ...

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    State and City-Run IRA Plans Are Not Going Away

    State and City-Run IRA Plans Are Not Going Away On April 13, President Trump signed into law legislation that blocked Obama-era Department of Labor (DOL) regulations encouraging the establishment of IRA plans run by cities and municipalities. On May 17, he signed similar ...

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    DOL Fiduciary Rule to Go into Effect June 9

    DOL Fiduciary Rule to Go into Effect June 9 The long-running saga of the Department of Labor (DOL) fiduciary rule took another turn on May 22 when Secretary of Labor Alexander Acosta confirmed that there would be no delay in the June 9, 2017, implementation date. Mr. Acosta said...

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    The 99% Rule for Spousal Beneficiaries of Retirement Accounts

    The 99% Rule for Spousal Beneficiaries of Retirement Accounts It sounds funny to say, but death is a part of life for all of us. It’s one of the few things that all of us will have in common at some point, and it’s one of the few issues that must be addressed in every plan. ...

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    Inherited IRAs and Roth IRA Distributions. This Week’s Q&A Mailbag.

    Inherited IRAs and Roth IRA Distributions. This Week’s Q&A Mailbag. This week's Slott Report Mailbag looks into inherited IRAs, RMDs, and Roth IRA distributions. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest ...

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    One-Rollover-Per-Year Rule and Spouse Beneficiaries

    One-Rollover-Per-Year Rule and Spouse Beneficiaries Hopefully, by now everyone has heard that IRA owners can only do one IRA-to-IRA or Roth IRA-to-Roth IRA 60-day rollover in any one-year period. This interpretation of the 60-day rollover rules was part of a 2014 Tax Court ...

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    How Your IRA Can Cost You When It Comes to Medicare

    How Your IRA Can Cost You When It Comes to Medicare You have done the right thing for years. You have diligently saved and accumulated funds in your IRA.  At some point, the funds that you have put away for years must come out. Uncle Sam wants his share. When you reach age 70 ...

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    Preparing for Inherited IRAs: This Week’s Q&A Mailbag

    Preparing for Inherited IRAs: This Week’s Q&A Mailbag This week's Slott Report Mailbag looks into inherited IRAs, calculating RMDs, and 60-day rollovers.  As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe...

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    7 Ways the IRS Knows…

    7 Ways the IRS Knows… It’s not a good question to be asking, and it’s certainly not the right question to be asking, but one fairly common question asked by both advisors and clients is “How are they going to know?” The “they,” they’re referring to, is the IRS. ...

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    The 10% Early Distribution Penalty Exceptions – Know the Rules

    The 10% Early Distribution Penalty Exceptions – Know the Rules This is a reminder that not all 10% early distribution penalty exceptions apply to all retirement plan distributions. Here are the three biggest mistakes that we see. Higher Education – From IRAs Only ...

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    Problems with the Once-Per-Year Rollover Rule? This Week’s Q&A

    Problems with the Once-Per-Year Rollover Rule? This Week’s Q&A This week's Slott Report Mailbag looks into 72(t) payments, CD-IRAs, and the once-per-year rollover rule. As always, we recommend you work with a competent, educated financial advisor to keep your retirement ...

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    6 Things Every Non-Spouse IRA Beneficiary Needs to Know

    6 Things Every Non-Spouse IRA Beneficiary Needs to Know It is not unusual to inherit an IRA from someone who is not your spouse. Many people inherit an IRA from a parent or a sibling. If this is the case for you, here are six things you will want to know. 1. Take some time. ...

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    3 Reasons a 401(k) Deferral Beats an IRA Contribution

    3 Reasons a 401(k) Deferral Beats an IRA Contribution 1) There Are No Restrictions Preventing a Tax Break When you defer a portion of your salary into a traditional 401(k), the amount deferred will reduce your taxable income dollar-for-dollar. This is true regardless of how ...

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    What the Trump Tax Plan Means for Your Retirement

    What the Trump Tax Plan Means for Your Retirement On April 26, 2017, the Trump administration released its highly-anticipated tax reform plan. The administration said the goals of the plan include growing the economy, creating jobs and simplifying the tax code. The changes ...

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    Did You Have a Loss of Funds in an IRA Thanks to Your Broker’s Illegal Transactions? This Week’s Q&A

    Did You Have a Loss of Funds in an IRA Thanks to Your Broker’s Illegal Transactions? This Week’s Q&A This week's Slott Report Mailbag looks into inherited IRAs, RMDs, illegal trades, and PLRs. As always, we recommend you work with a competent, educated financial ...

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    So You Think You Need to Name a Trust as the Beneficiary of Your IRA

    So You Think You Need to Name a Trust as the Beneficiary of Your IRA In two weeks I had three trusts come across my desk that were named as the beneficiary of the account owner’s IRA. The account owner had now died and the universal question was, “Now what?” The first ...

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    7 Things You Need to Know About the Once-Per-Year Rollover Rule

    7 Things You Need to Know About the Once-Per-Year Rollover Rule In 2014, the Tax Court in the Bobrow case ruled that the once-per-year rollover rule applies to all of an individual’s IRAs, not to each of their IRA accounts separately. The Court’s surprising ruling conflicted...

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    If You're Over 70 1/2 Years Old and Still Working You Need to Know This

    If You're Over 70 1/2 Years Old and Still Working You Need to Know This This week's Slott Report Mailbag looks into still working exceptions, RMDs, and IRA transfers.  As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest ...

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    How to Increase Your Chances of Audit to 100%

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