Taxpayers with the largest IRAs (and their beneficiaries) will be in higher tax brackets in the future. Doing nothing now is a bad plan. Tax-deferred traditional IRAs will continue to grow, and so will the tax bill that eventually comes due. The SECURE Act is a giant wake-up call to do the long-term thinking that should have been done since the beginning.
If you have both pre-tax and Roth accounts in a 401(k) (or a 403(b) or governmental 457(b)) and are subject to required minimum distributions (RMDs), be aware of new rule changes made in the 2022 SECU RE 2.0 law. The rules were clarified in the IRS RMD final regulations, which came out on July 18.
There is a “ticking time bomb” coming for many Americans’ retirement nest eggs—but there’s still plenty of time to defuse it before it wreaks havoc on the country’s cumulative retirement savings.
If you have both pre-tax and Roth accounts in a 401(k) (or a 403(b) or governmental 457(b)) and are subject to required minimum distributions (RMDs), be aware of new rule changes made in the 2022 SECU RE 2.0 law. The rules were clarified in the IRS RMD final regulations, which came out on July 18.
The takeaway for advisors from the just-released Government Accoutability Report on IRA conflicts is that “unfortunately, more regulation is on the way and that means more burdensome compliance paperwork,” according to IRA and tax expert Ed Slott of Ed Slott & Co.
Tax and IRA expert Ed Slott discusses how the Secure and Secure 2.0 Acts undermine the case for deferring the tax bill.
Complex rules are “ridiculous” but advisors can add long-term value by helping clients get their IRAs and 401(k) balances down.
Financial advisors are well aware of the tax rules that affect retirement withdrawals, required minimum distributions, Roth conversions and rollovers. Clients, though, can often make major wealth-killing mistakes when managing their retirement savings.
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.
The IRS’ final rules on required minimum distributions for beneficiaries under the 10-year rule, released Thursday, have created ”an unnecessary complication” that only Congress can fix, according to IRA and tax expert Ed Slott of Ed Slott & Co.
