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401(k) custodians are usually pretty good about distributing required minimum distributions (RMDs) from the plans they oversee. This is especially important when a participant is rolling over his plan balance to an IRA. Why must plan custodians to be on their toes in situations like this? Because plan RMDs are not permitted to be rolled over to an IRA. Some people think they can roll their entire 401(k) to an IRA and simply take the plan RMD from the IRA later in the year. No deal. The plan RMD must be taken prior to any rollover. If the plan RMD is erroneously rolled over, it is now an excess contribution in the IRA, and that error must be corrected.

HOW TO REGISTER A NEW BDA ROTH IRA ACCT.  AFTER THE FIRST BENEF. DIES AND IT GOES TO THE SECOND...

Hello – I want to confirm my understanding of the pre-SECURE ACT rules on inheriting a ROTH IRA.  A sister...

Hello – I want to confirm my understanding of the pre-SECURE ACT rules on inheriting a ROTH IRA.  A sister...

Hello, I have a question regarding an inherited inherited IRA. I have a husband and wife client. The husband’s mom...

How does purchasing a QLAC impact the 8606 calculation?  Could this be a strategy for isolating after tax money in...

Please confirm my assessment: Client wants to contribute after-tax dollars in his 401(k) and immediately convert them to Roth 401(k)...

My client has a nondeductible IRA. He has been tracking the basis in this nondeductible IRA each year with the...

I have a client who is going to do a $7000 Roth conversion from their 529 plan in 2025.  This...

Traditional and Roth IRA owners often get confused about the distributions they take from their IRAs. Mix-ups and misunderstandings are pervasive. With Roth IRAs, there a number of different factors to consider when withdrawing funds.