Required Minimum Distributions and IRAs: Today’s Slott Report Mailbag
By Andy Ives, CFP®, AIF®IRA Analyst QUESTION: If a client opens an IRA at age 75 and makes a contribution...
IRA
4 Things to Know About Rollovers Between Calendar Years
The IRA rollover rules are always tricky. However, if you are rolling over an IRA distribution when the calendar year changes, the rules can become especially challenging. Here are four things you need to know about rollovers as the year 2024 ends and the year 2025 arrives.
Updating Our Beneficiary RMD Cheat Sheet
In the May 8, 2024, Slott Report, we published a “cheat sheet” summarizing the confusing SECURE Act rules for beneficiary IRA (and company plan account) required minimum distributions (RMDs).
QCD Timing
Year after year, this topic continues to bubble up. Confusion exists over when a QCD can be done in relation to the RMD. Qualified charitable distributions (QCDs) can offset all or a portion of an RMD (required minimum distribution). However, for whatever reason, the sequencing of these items (QCDs and RMDs) confounds people. Let’s set the record straight, starting with some QCD fundamentals:
So Many IRA Beneficiary Variables!
When an IRA owner dies, what is the payout schedule for the beneficiary? The key to distinguishing the correct program (i.e., 10-year rule, stretch RMDs, 5-year rule, etc.) is to identify all the important variables. But there are so many! Nevertheless, each detail must be considered. Every scenario requires that we navigate through a mental flow chart. The correct answer lies at the end of every beneficiary maze.
Nothing SIMPLE About It: 3 Different Catch-Up Limits for 2025
Here’s something you can only find in the Internal Revenue Code: Starting in 2025, there will be not one, not two, but three different catch-up limits for older SIMPLE IRA participants.
Roth IRA Conversion Considerations
Roth IRA conversions remain as popular as ever. However, based on some recent questions we’ve received, it is apparent that folks don’t fully understand all the nuances of this transaction. Here are some of the basic concepts and items of consideration:
New Rule: All IRA RMDs Must Be Satisfied Prior to Doing a Roth Conversion
Yes, you read that title correctly. This rule was confirmed in the 2024 final SECURE Act regulations, released this past July. If a person has multiple IRAs, even if they are held at different custodians, the total aggregated IRA required minimum distribution (RMD) must be withdrawn before any Roth IRA conversion (or 60-day rollover) can be completed.
Trusts as the Beneficiary and Inherited IRAs: Today’s Slott Report Mailbag
QUESTION:Hello,I’m working with a retired client who has a sizable IRA. He set up a trust and named it as the beneficiary of the IRA, assuming that the trust would reduce or eliminate the income tax liability. Is this the case? Also, does a trust circumvent the 10-year rule?Thanks!
Turn Your Clocks Back, and Pay Attention to the Roth IRA Clocks
Don’t forget to turn your clocks back this weekend!With that reminder comes another: pay attention to the Roth IRA distribution clocks. The key point to remember is that there are two different clocks, each used for a different purpose.
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