Advisors have two years to make big tax-saving moves for their clients, says Ed Slott. After that, a legislative window could close that opportunity forever.
Policymakers tout recent legislation as offering a leg-up to Americans struggling to save for retirement, but one tax and retirement expert says not to believe the hype.
The SECURE Act 2.0, enacted at the end of last year, will bring about some important changes for retirement planners—but it’s not as impactful as its predecessor, 2019’s the SECURE Act, said Ed Slott, president of Slott & Co.
The clock may be ticking on backdoor Roths. The latest proposal (under a House of Representatives bill submitted on November 19, 2021) would eliminate both the regular backdoor Roth and the mega-backdoor Roth next year for everyone, regardless of income.
Also proposed is an outright ban on the “mega backdoor Roth” conversion using workplace retirement plans, which allowed high-income Americans to put $58,000 into a Roth account this year.If passed, that proposal would be effective next year.
Say you started with $40,000 in before-tax contributions to non-Roth IRAs and another $10,000 in after-tax contributions to other non-Roth IRAs.That means 80% of your total non-Roth IRA accounts were made with pre-tax dollars
Two tax and retirement specialists say a recent IRS publication has thrown IRA inheritance planning into chaos, but that advisors shouldn’t make changes just yet.
Until the release of IRS Publication 590-B (Pub 590-B), retirement and tax experts told advisors that 2019’s SECURE Act required that the entire balance of an inherited IRA be withdrawn by Dec.31 of the 10th year following the original account owner’s death, but that no annual required minimum distributions (RMDs) would be necessary, said Ed Slott, founder of Ed Slott and Co.
Retirement plan investors should position their portfolios to pay taxes sooner, rather than later, according to Ed Slott, founder of IRAhelp.com.
And one strategy to do this is by converting traditional IRAs to Roth IRAs, Slott said Tuesday during a roundtable discussion on how the next round of federal stimulus money will affect the economy.The rountable was sponsored by public relations firm JConnelly.
Ed Slott, CPA and founder of irahelp.com, will be joining the faculty of the American College of Financial Services as professor of practice, the College recently announced in a news release.
2020 will be a year to remember for decades to come.In the world of tax and retirement planning, it’s brought opportunities for advisors to present to clients
Even though the CARES Act, Congress’s $2.5 trillion coronavirus relief provision, does not require retirees to take minimum distributions from their qualified accounts, they may want to anyway, said IRA and tax expert Ed Slott.
In "Answers To Advisors' Questions On The 2020 Retirement Tax Rules," a Tuesday afternoon webinar, Slott said that the provisions of the CARES Act, combined with changes to taxation and retirement rules in 2019’s SECURE Act, make 2020 a unique year for retirement income.
