Think Advisor

A sweeping retirement bill, the Securing a Strong Retirement Act of 2022, or Secure Act 2.0, that passed the House late Tuesday increases the required minimum distribution age from 72 to 75 in stages — over 11 years — and reduces the 50% penalty for missing an RMD, Ed Slott of Ed Slott & Co.told ThinkAdvisor on Wednesday.

The bill, which passed the house by an overwhelming 414-5 vote and is expected to be taken up soon by the Senate, also includes “lots of ‘Rothification,’” Slott said, “meaning Congress is stepping up Roth contributions.”

Tax time has rolled around again, and tax and IRA specialist Ed Slott of Ed Slott & Co.has plenty of advice for advisors

IRA legislation will not happen in 2021, and the IRA parts of the Build Back Better Act (BBB) may not happen in 2022 if the legislation remains stalled in Congress.But other retirement-related bills may have a better chance of becoming law.

So advisors should still share retirement tax planning strategies with clients in 2022, based on the current tax structure and what might be in the works.

As we approach year-end, CPA and IRA expert Ed Slott of Ed Slott & Co.has given ThinkAdvisor the top priorities that advisors should be focusing on right now in helping their clients with last-minute tax and retirement plan priorities.

His must-dos include avoiding the No

The elimination of backdoor Roth IRA conversions has made it back into the latest version of House Democrats’ tax and spending bill.

President Joe Biden’s Build Back Better framework excluded the retirement planning provisions that were approved in the House Ways and Means Committee’s Build Back Better bill in mid-September.

House Ways and Means Committee Chairman Richard Neal’s plan to usher in several changes to individual retirement accounts “will not likely see much pushback because most people will never have to worry about their IRA balances exceeding $20 million,” IRA and tax specialist Ed Slott of Ed Slott & Co.told ThinkAdvisor late Monday in an email

Solo 401(k)s — in addition to company 401(k)s — can help clients save additional retirement money on an after-tax basis, even with the possibility of converting them to mega backdoor Roth IRAs, but there are rules, according to Ian Berger, an IRA analyst with Ed Slott & Co.

IRA data released from the Joint Committee on Taxation revealing some mega-million dollar IRA and Roth IRA balances has set off alarm bells, with Congress citing shock and “abuse” and looking for something to do about this.But there is really no story here when you look at the numbers

In this episode of Human Capital, Ed Slott of Ed Slott & Co.relays important tax advice related to potential changes to the stepped-up basis and estate tax, and also warns that the potential boosting of the required minimum distribution age to 75 is likely “useless,” and that lawmakers may actually be “creating a bigger problem” with such a change.

A new study by the Investment Company Institute shows U.S.households’ missed opportunity in maximizing IRA contributions, according to IRA expert Ed Slott, an area where advisors can provide “significant value.”