This week's Slott Report Mailbag talks about the act of "moving money" from one retirement account (yours or an inherited account) to another. There are many tax and penalty pitfalls at play, and we dissect the right way to go through these procedures in the question-and-answer below.
We have covered the new tax law (the American Taxpayer Relief Act of 2012) from both a retirement planning and tax planning standpoint since it was signed into law by President Barack Obama on January 2, 2013. We wrote a quick analysis of the law complete with a 5-plus-minute video on 5 key planning points. We followed with a detailed look at qualified charitable distributions (a topic we get frequent questions about), and how they were affected by the new law.
You are still working. You want to convert some of your employer plan funds to a Roth IRA to follow Ed Slott's advice and begin years worth of tax-free saving. Can you? We examine the answer to that question and more in this week's Slott Report Mailbag.
A new tax law brings a lot of indecision, and we expect the questions to start pouring in over the Taxpayer Relief Act of 2012. In the short term, we continue to see many questions about how to forge forward with proper planning in 2013, outside any of the tax provisions from the new law. This week's Slott Report Mailbag tackles Roth conversion income limits, Roth recharacterizations and the rules governing IRA distributions.
This week's Slott Report Mailbag answers what we call some of the "nuts and bolts" of IRA planning. We received questions on required minimum distributions (RMDs) and inherited IRAs - two of our most popular topics, and also two of the topics where we see the most mistakes and disaster stories. Away we go with another Thursday mailbag!
This week's Slott Report Mailbag looks at Roth contributions and the prerequisites necessary to make a contribution. We also answer a question on investing inherited IRA money in an IRA annuity.
The Slott Report Mailbag is back with three consumer questions that run the gambit of IRA-distribution and retirement planning. Can you use an IRA as security for a loan? How do you handle inherited IRAs for you and your wife? Can an employer have both a SEP and a SIMPLE plan for their employees? You have come to the right place for the answers.
You want to leave your Roth IRA to your grandchildren. You are worried about required distributions at age 70 ½ if you are still working. You want to know all of the tax specifics of a year-end Roth conversion. You have come to the right place, a special post-holiday Monday edition of The Slott Report Mailbag.
This week's Slott Report Mailbag includes questions on some of our most-discussed topics, including 60-Day IRA Rollovers and the Roth IRA 5-year rules for distributions. These are delicate areas filled with penalty traps, so make sure you use the answers below as a guide and contact a competent, educated financial advisor to steer you around the landmines of taxes and penalties.
This week's
Slott Report Mailbag includes questions (and our answers) on the income requirements for a Roth IRA contribution, SEP IRAs and governmental 457(b) plans.
As always, we stress the importance of working with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Find one in your area at this link.1.
Is a monthly retirement check considered income in order to open a Roth IRA?
Answer:An IRA contribution must be based on the taxable compensation of the individual for the year of the contribution. Pension, profit sharing or IRA distributions are not considered compensation for the purpose of a contribution to an IRA.
