You have a Roth 401(k), 403(b), 457(b) or federal government Roth TSP. You have left your job and want to move those funds to a Roth IRA. What 5-year rule applies to the rolled over funds? The answer follows.
A client is setting up a 72(t) distribution schedule – substantially equal periodic payments that will be exempt from the 10% early distribution penalty. Her first distribution won't be made until September and she would like to take monthly payments. But she also wants the full distribution for the first year, not just four payments. Can she do this? We answer this question below.
Fall is upon us, at least that's what we think every time we walk past a coffee shop. People are beginning year-end retirement planning preparations, and this week's Slott Report Mailbag includes questions on required minimum distributions (RMDs) and two different scenarios for Roth conversions.
Summer is over, kids are returning to school and we are all getting back into a regular work schedule. Now is the best time to learn how to maximize your company-sponsored retirement plan. Ed Slott and Company IRA Technical Consultant Jeffrey Levine details 3 ways to maximize your retirement plan in this IRAtv video shown below.
When you open a new IRA, certain forms and paperwork must be filled out. Failure to do so can result in large IRS penalties and other harsh tax consequences as a recent court case showed.
When a Roth IRA owner dies, the money belongs to the beneficiary. Although Roth IRA owners never have to take minimum distributions during their lifetime, the beneficiary must take distributions after the Roth IRA owner dies. Roth IRA beneficiaries have the same after-death stretch opportunity as if they inherited a traditional IRA. There are two options for you as the beneficiary of a Roth IRA, which we explain below.
Almost all IRA owners will name a primary beneficiary of their IRA; usually some person who will receive your IRA assets after you die, such as your wife or husband or children. Virtually all IRA custodians will also allow you to name a contingent beneficiary.
Ed Slott, America's IRA Expert, details the IRA rollover rules and procedures so you can avoid needless taxes and penalties on your rollovers from employer plans (401(k)s for example) to IRAs or from one IRA to another IRA. Ed Slott takes you through the steps to IRA rollover success! View this IRAtv video below.
Let's assume you have an IRA or retirement plan or annuity or even life insurance. All of those things have a beneficiary form. They do not pass through your will and they are not probate assets as long as you have completed or updated the beneficiary form.
Can you believe summer is almost over? Yet, The Slott Report Mailbag was full of pertinent IRA and retirement planning questions from consumers who are trying to make the right decisions as the dog days rapidly turn into fall. This week's installment includes questions (and our answers) on the 60-day deadline on Roth IRA rollovers, 10% penalty exceptions and Roth IRA conversions.
