Ed Slott, founder of Ed Slott and Company, sits down with InvestmentNews anchor Gregg Greenberg to recommend end-of-year tips to save on taxes and maximize retirement accounts.
A recent report by the Investment Company Institute revealed that U.S. retirement assets climbed to a staggering $40 trillion as of the end of the second quarter. This growth was led by an increase in IRA assets to $14.5 trillion. In addition, a good chunk of the remainder of the $40 trillion is sitting in 401(k) and other company plans, most of which will eventually end up in IRAs.
Complex rules are “ridiculous” but advisors can add long-term value by helping clients get their IRAs and 401(k) balances down.
The IRS has released almost 300 pages of regulations on required minimum distributions (RMDs) for IRAs and 401(k)s, in two parts. The first part was the FINAL Secure Act Regulations-7-18-24.pdf which ran 260 pages. The second part was the Proposed SECURE 2.0 Regualtions-7-18-24.pdf which ran another 36 pages.
There is confusion over RMD rules and advisors must step up to the plate to help clients. The penalty for missing a required minimum distribution (RMD) is one of the largest in the Tax Code. For years it was 50 percent of the amount that should have been taken but was not.
As of June 6, 2024, the total debt of the U.S. government was $34.67 trillion, up from $32 trillion only a year ago. In fact, the federal government spent $658 billion on net interest costs on the national debt in 2023, or about 2.4% of GDP. This was the largest amount ever spent on interest in the budget, reflecting a 38% increase from 2022.
Ed Slott, author of ‘The Retirement Savings Time Bomb Ticks Louder’, sits down with InvestmentNews anchor Gregg Greenberg to explain how to avoid unnecessary tax landmines and secure your retirement accounts.
There’s a chance to do two 529-to-Roth rollovers this year – but only if the first one (for 2023) is done by April 15.
Here are tactics to use this year given the opportunities for record stock values at the end of 2023.
The Roth IRA is the ultimate financial gift for retirees and their beneficiaries. Roth individual retirement accounts have no lifetime required minimum distributions, so you’ll never have to worry about paying higher future tax rates on those funds.
