Can you deduct a loss in your IRA or Roth IRA? The answer is yes, if you meet the criteria. It is much easier to deduct a loss in a Roth IRA than in a traditional IRA because Roth IRAs generally hold more basis than a traditional IRA. Basis in a traditional IRA comes only from nondeductible contributions and/or rollovers of after-tax funds previously held in an employer plan. Basis in a Roth IRA comes from Roth IRA contributions, Roth IRA conversions and most rollovers from designated Roth accounts (i.e. Roth 401(k) funds). Here are the six steps.
Roth IRAs can be powerful retirement planning tools. They allow you to put money aside today that can grow tax free for the remainder of your lifetime, and there are no required minimum distributions, like there are for traditional IRAs. Of course, nothing worth having in life comes without a cost, and the Roth IRA is no exception. Here's how to grow your Roth IRA account without growing your bill at tax time.
When you take a distribution from your traditional IRA, you will owe taxes in most cases. Uncle Sam wants to be sure those taxes are paid. The good news, however, is that there is a lot of flexibility when it comes to withholding on your IRA distribution. Here is what you need to know.
If you are like many Americans, your IRA may be one of your biggest assets. You may be surprised to discover that this important part of your retirement savings plan may be more vulnerable than you might think. Here is what you need to know about protection of your IRA in bankruptcy and beyond.
The IRA rules are very complicated. The RMD (required minimum distribution) rules are very complicated. Annuity rules are very complicated. Put them all together and what do you get? Usually, just a mess of chaos and confusion. Today, we look at what happens to RMDs when you annuitize your IRA annuity over your lifetime or over a joint lifetime (your lifetime, plus the lifetime of another person). The answer provided below is excerpted from our soon-to-be-released must-have resource, The Definitive Guide to Required Minimum Distributions for Baby Boomers.
In recent weeks, the Social Security Administration has released a flurry of information, including several “Emergency Messages,” aimed at clarifying some of the changes to the Social Security rules made by the Bipartisan Budget Act of 2015. The guidance addressed a number of critical, previously unanswered questions, and is poised to impact many of those in or approaching retirement. Here is a list of the key updates, followed by a more comprehensive explanation of the guidance.
What is the RBD? RBD stands for required beginning date. It is the date by which an IRA owner must take their first required minimum distribution (RMD) in order to avoid a 50% penalty. Generally, an individual must take their first distribution from a retirement account in the year they turn age 70 ½. The following points clarify exactly when you must take your first distribution.
You converted your traditional IRA to a Roth IRA. Then, you recharacterized those Roth IRA funds back to a traditional IRA. You are not alone. Many taxpayers recharacterize Roth IRA conversions. This is especially common in times of market volatility. For many taxpayers, a recharacterization makes sense when faced with a Roth IRA that declined in value since the conversion. Why pay a tax bill on value that no longer exists? After the recharacterizion, you may be wondering... what next? Here are some things you need to know.
This past weekend, advisors from all across the country gathered at the Mirage Hotel and Casino in Las Vegas, Nevada to spend two days with the Ed Slott and Company team for our latest Instant IRA Success 2-Day IRA Workshop. Over the two days, there were – no doubt – hundreds of questions asked and answered by our team. Here are three of our favorites, along with the answers.
There are two types of tax reporting for IRA accounts: the reporting that is mandatory for IRA custodians and the subsequent reporting that must be done by the IRA owner or beneficiary. Here's what you need to know about each.
