IRA Rollovers and Roth Contributions: Today’s Slott Report Mailbag
Question:Can a person do a rollover from both his traditional AND Roth IRAs in the same twelve months?Best regards,Matthew
Roth
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:
INHERITED ROTH IRAs AND TRUST BENEFICIARY PAYOUTS: TODAY’S SLOTT REPORT MAILBAG
Question:For a non-spousal inherited roth IRA account, there seems to be contradictory advice on different websites about when to take distributions. Some say there are annual required minimum distributions (RMDs) within the 10 years; others say you can wait until the 10th year for a lump sum. If you can wait and don't need the money, wouldn't it be wiser to wait until the last year since the money compounds tax free and the final lump sum distribution would also be tax-free?
You Missed the October 15 Deadline to Correct an Excess IRA Contribution – Now What?
October 15, 2024 has come and gone. This was the deadline for correcting 2023 excess IRA contributions without penalty. If you missed this opportunity, you may be wondering what your next steps should be. All is not lost! While you may not have avoided the excess contribution penalty for this year, you can still correct the issue for future years.
Recharacterization Still Exists
When a traditional IRA owner wants to convert all or a portion of his account to a Roth IRA, he needs to think long and hard about the transaction. For example, some questions to consider:
Roth IRAs and Successor Beneficiaries: Today’s Slott Report Mailbag
QUESTION:I have been getting emails from a few sites pitching their subscriptions. They claim that Roth IRAs will all be taxable in the future. They say there are things you can do to avoid these taxes, but to find out what they are you have to subscribe to their newsletter. Is this true, and if so, how can one avoid taxes for Roth IRAs?
Roth 401(k) Dollars Are No Longer Subject to RMDs
If you have both pre-tax and Roth accounts in a 401(k) (or a 403(b) or governmental 457(b)) and are subject to required minimum distributions (RMDs), be aware of new rule changes made in the 2022 SECURE 2.0 law. The rules were clarified in the IRS RMD final regulations, which came out on July 18.
INHERITED ROTH IRAs AND NUA: TODAY’S SLOTT REPORT MALBAG
Question:Thank you for all of the wonderful information. I have a question as to how the July 18, 2024 final regulations impact inherited Roth IRAs. My daughters inherited Roths from their grandmother 3 years ago. She was age 101.
Roth IRA Distributions and Self-Directed IRAs: Today’s Slott Report Mailbag
Question:I have a question about the Roth IRA distribution ordering rules based on a client's situation:1. The client is 45 years old.2. She has had a Roth IRA open for five plus years.
Five Things to Know About Roth 401(k)s
A recent survey found that over 80% of 401(k) plans now offer employees the option of making Roth 401(k) employee contributions. More and more employees are now taking advantage of that opportunity. (In this article, I use the term “Roth 401(k) contributions” to also include Roth employees made to 403(b) and municipal 457(b) plans.)
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