Can You Convert Assets to a Roth 401(k)? Part II
Can you convert assets to a Roth 401(k)? We initially tackled this question in a September 22nd article. Well...you need an update.
IRAs
Year of Death Required Minimum Distributions
Required minimum distributions (RMDs) start at age 70 ½ for all traditional IRA owners, including those who have SEP and SIMPLE IRAs set up through their employers - even if they are still working for those employers at the time.
I’m Still Working; What’s My RMD?
I get this question frequently. Many of us are looking at working beyond the age of 70 ½. What required distributions (RMDs) do you have to take if you continue working?
Don’t Recharacterize Too Soon
Some taxpayers who did Roth conversions earlier this year have seen their account values drop. As a result, they are considering doing a recharacterization of their Roth back to an IRA. But maybe they should wait a while. Why? Maybe, if they wait long enough, the Roth account will recover and not need to be recharacterized. The better answer, however, lies in the rules for reconverting assets once they have been recharacterized.
SEP IRA Confusion
This week the Ed Slott and Company IRA Discussion Forum featured a question on whether or not a trust as a SEP IRA beneficiary should be any different than it would be with a traditional IRA account. The answer to that question is not really, but the relationship between SEP IRAs and traditional IRAs can be a confusing one. Want to see how?
Question of the Week: Illiquid IRA Investments
This week the Ed Slott and Company IRA Discussion Forum featured a question about the illiquid investments in an IRA and how they may affect RMDs. Do you have these types of investments in you IRA? Read on to find out some of the major items for which you need to be aware.
Required Minimum Distributions and Roth Conversions
If you are doing a Roth conversion this year and you are age 70 ½ or older, the RMD must be taken before you do the conversion. The conversion is considered a distribution and RMD funds are considered to be the first funds distributed from the account. RMDs cannot be moved into the Roth IRA.
Required Minimum Distributions and Age 70 1/2
Required minimum distributions (RMDs) begin in the year you turn 70 ½. Not age 70 and not age 71 but age 70 ½. So who is age 70 ½ in 2010? If you were born from July 1, 1939 up through June 30, 1940 you will be 70 ½ this year. How do you know what age to use for calculating your RMD?
Is Your IRA Safe in Bankruptcy?
The bankruptcy reform act passed in 2006 gave all IRAs a $1,000,000 exemption if you are using the federal bankruptcy rules. In addition, funds from employer plans were 100% exempted, even if they were rolled over to an IRA. So, your IRA funds should be exempt, right? The answer is a definite maybe.
The Wrong Beneficiary — Can a Disclaimer Help?
The IRA owner has died. Only one individual is named on the beneficiary form, let’s call him David. He wants to do the right thing and share the IRA with his siblings or the other individuals who should have had a share of the IRA. I know, it is hard to believe but some beneficiaries do want to do the right thing! So, what can David do?
Content Citation Guidelines
Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.
Please be advised that prior to distributing re-branded content, you must send a proof to [email protected] for approval.
For white papers/other outflow pieces:
Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC – depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC – depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.
For charts:
Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.
For Slott Report articles:
Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.
Please contact Matt Smith at [email protected] or (516) 536-8282 with any questions.