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When a trust is named as beneficiary of an IRA, several possible negative issues may be introduced. For example, after the death of the IRA owner, things can become more complex for the beneficiaries. Trust beneficiaries cannot simply set up their own inherited IRAs. We must open a trust-held inherited IRA and, depending on the trust document, the trust beneficiaries could be limited in their access to the dollars.

Question: Hello Ed Slott Team! I have been doing backdoor Roth IRA conversions for years now. I recently inherited a large traditional IRA from my aunt. Will the inherited IRA affect my ability to do tax-free backdoor Roth IRA conversions?

The benefit of funding a Roth IRA is the availability of tax-free distributions in the future. You pay taxes now on your contribution (or conversion) in exchange for tax-free earnings down the road. The rules can be complicated. Don’t miss out on Roth IRA benefits by making mistakes when you take a distribution. Here are five steps for tax-free Roth IRA distributions.

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.

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.

In final regulations issued on September 15, 2025, the IRS confirmed that company retirement plans must comply with the SECURE 2.0 Act’s mandatory Roth catch-up rule as of January 1, 2026.

If you are thinking about doing a qualified charitable distribution (QCD) for 2025, time is running out. The deadline is December 31, 2025. Many people miss out on this valuable tax break. Here are 5 things you need to know about 2025 QCDs:

QUESTION: I am 67 years old and have a Roth IRA that is over 5 years old. I would like to perform some annual 401(k)-to-Roth IRA conversions before I become subject to required minimum distributions (RMDs) on my 401(k) when I turn age 73. I am aware that I will need to pay income taxes on the conversions themselves, but there is a lot of conflicting information out there on what happens with the earnings on the converted funds after they move to the Roth IRA.

As the end of the year approaches, you may have plans to retire on December 31. However, if you are using the “still-working exception” to defer required minimum distributions (RMDs) from your 401(k) (or other company plan), you may want to delay your retirement into 2026.

The end of the year always brings a flurry of retirement account deadlines and planning opportunities. This year is no different. And, new for 2025, the One Big Beautiful Bill Act (OBBBA) brings new considerations, especially for Roth conversion planning.