While an IRA rollover is the best move for most people when distributing money from a 401(k) plan, there is a special case when a lump-sum distribution makes sense — and the justification for one is “bigger than ever,” according to tax and IRA expert Ed Slott of Ed Slott & Co.
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.
Tax and IRA expert Ed Slott runs down the key options for managing your retirement accounts.
Tax and IRA expert Ed Slott says there’s a small positive with higher inflation: greater Roth conversion opportunities.
When you were a kid, and your mom asked you clean your room or pause your video game or come in for dinner, you likely told her some variation of, “in a minute” or “I’ll do it later.”
What do you do to diffuse the retirement time bomb? The government has a plan, and you won’t like it. Joe was the emcee recently for maybe the biggest name in tax planning — Ed Slott — and his book launch event. We’re replaying as our mentor segment today Joe’s interview with Ed from that event because there are so many “a-ha” moments and good direction toward ensuring that your tax time bomb doesn’t go off all over your retirement.
We all had a deal with the taxman, and Congress just reneged. Why? Because, as usual, the government needed money. When Congress passed the SECURE Act on Dec. 20, 2019, we lost out on the three-part deal that many retirees and their beneficiaries had been banking on, literally.
It would almost be malpractice for any financial or tax advisor to ignore the coming tax storm,” according to Ed Slott of Ed Slott & Co.
That’s one of the central themes in his new book, “The Retirement Savings Time Bomb Ticks Louder,” Slott told ThinkAdvisor in a recent email exchange. “The taxes growing in the IRAs are what my book title refers to, a ticking tax time bomb.”
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.
