First, by making the donation, you avoid any long-term capital gains tax on the asset."That will help you reduce your taxable income," says Ed Slott, a CPA who educates financial advisers on IRA and retirement planning strategies.
IRA expert Ed Slott makes an important point regarding naming trusts as IRA beneficiaries.“There is no tax benefit that can be gained with a trust that cannot be gained without one.”
“The RMDs aren’t that big to start with,” said Ed Slott, an author and retirement expert."Unless you’re talking about a mega-IRA, adjusting the tables for higher longevity won’t shave off even a percentage point in the amount you must take.”
“Where I see a big benefit is if you’re doing a backdoor Roth conversion and you’re still working,” said Ed Slott, CPA and founder of Ed Slott & Co.
“The first overriding factor is ‘Never do it,’” said Ed Slott, CPA and founder of Ed Slott & Co.“You will have less money for retirement
Problem is, according to Ed Slott, CPA and founder of Ed Slott and Co., "they cast such a wide net…they catch the little fish — people who weren't doing anything wrong."
“It’s the same principle as a reverse mortgage, where the money you owe will be deferred until you die or sell,” says Ed Slott, a certified public accountant and retirement expert based in New York.
Eight years after their arrival, backdoor Roth IRAs are alive and well.
Many retirees tap their Social Security benefits at their full retirement age or even earlier, while leaving their IRAs until later in retirement.But IRA expert Ed Slott believes that the opposite sequence can make more sense in certain situations.
Thanks to the new tax laws, doing a qualified charitable distribution is more advantageous than ever.Joining me to discuss the maneuver is Ed Slott.
