How Do Revocation-on-Divorce Laws Work with ERISA Plans?
By Ian Berger, JDIRA AnalystFollow Us on Twitter: @theslottreport What if you have an IRA with your spouse as primary beneficiary,...
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Qualified Charitable Distributions and the “Mega” QCD Strategy: Today’s Slott Report Mailbag
Question:I appreciate all of the information you pass along, both through PBS and now through the American College. In one of your recent presentations, you discussed QCDs and their often-overlooked value. I recommend QCDs to “eligible” clients. Since the adoption of the new age 72 for RMDs, the question I have is this: As I understand the rules, people who are age 70 1/2 or older can do QCDs up to $100,000 annually. But now RMDs don’t start until age 72. Does this create a “split” definition as to who can use QCDs? That is to say, is there a gray area for those in the “gap” for the beginning age for RMD's?
Real Estate in an IRA – Avoiding a “Nuisance Property”
Yes, you are allowed to own real estate in an IRA. Of course, not every IRA custodian will accommodate such an investment, but that doesn’t mean it is forbidden. If you want to own a beach house in your IRA, or a commercial building, or an apartment complex, you have every right to do so.
Strategies When Your IRA Contribution Cannot Be Deducted
The other day an advisor called us with an issue that comes up frequently, especially in these tumultuous times. His client had made an IRA contribution for 2021 and was planning on deducting that contribution. However, his job situation changed, and he became an active participant in a retirement plan at a new job.
ROTH IRA CONTRIBUTIONS AND QCDs: TODAY’S SLOTT REPORT MAILBAG
Question:I am 72 years old and have a Roth IRA. I have some extra cash in a bank account. Can I put that into my Roth IRA and how much can I contribute for 2021?
The Mega Backdoor Roth IRA Strategy and Solo 401(k) Plans
In the August 16, 2021 Slott Report, we showed that someone participating in a 401(k) plan through a “regular” job could also establish a solo 401(k) plan through a side job and potentially contribute up to $58,000 this year in after-tax contributions to the solo plan. However, this only works if the company sponsoring the regular 401(k) plan and the entity sponsoring the solo 401(k) (e.g., a sole proprietor) are considered unrelated under IRS rules.
Aggregating RMDs – What Is (and What is Not) Allowed
Recently, I had a conversation with an advisor who wanted a second opinion. He disagreed with how a 401(k) custodian was handling his client’s required minimum distribution (RMD). To arm himself with facts, the advisor contacted us so he could push back on that custodian.
The 10-Year Rule and IRA Beneficiaries: Today’s Slott Report Mailbag
Question:Ed,My client recently passed away at the age of 86 and the beneficiaries were his twin grandchildren who are six years old. Does their 10-year clock to withdraw the funds start right away, or can they wait until they are 18 years old to start their 10-year clock to withdraw the funds?
10 Things to Know About ESAs
It’s back to school time! Any parent will tell you that education can be expensive. You cannot afford to miss out on any possible option out there that may help you save. One savings tool that you might overlook is the Coverdell Education Savings Account (ESA). Here are 10 things you need to know about ESAs.
Making Sense of the 401(k) Multiple Plan Limits
We continue to get lots of questions about the company savings plan contribution limits. There are actually two different contribution limits – the “deferral limit” and the “overall limit.” This makes things very confusing, especially if you’re in multiple plans at the same time or you change jobs in the middle of the year.
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