The Slott Report

Beware of these 3 investing mistakes with your IRA: late investments, illegal investments, and prohibited transactions. They can cost you or your clients big bucks.

With the tax deadline having just passed, now is the perfect opportunity to start planning for next year. Last year’s return should be readily available, and you may even have many important items committed to memory. Additionally, four months into the year is the perfect time to begin making current year projections. Of course, this year is different. That’s because 2018 will be the first that we file under the changes created by the Tax Cuts and Jobs Act (TCJA).

This week's Slott Report Mailbag answers readers' questions about Roth conversions, the pro-rata rule, and rollovers.

One of the greatest benefits of an IRA is its ability to provide tax-favored wealth for heirs. An IRA left to a beneficiary can be "stretched" to provide pre-tax compound investment returns for the rest of the beneficiary's life -- or even longer. And these can be distributed totally tax free if it is a Roth IRA.

The countdown to the 2017 tax filing deadline is on. The deadline is April 17, 2018, which is really only hours away. Time is running out. Is your IRA ready?

This week's Slott Report Mailbag answers readers' questions about non-deductible contributions, form 8606, and conversions.

One of the benefits of a Roth IRA is that contributions can always be distributed out of the Roth IRA with no tax, and no early distribution penalty for those that are under age 59½. But, you have to be able to prove to IRS that you are taking a distribution of contributions only. Under the distribution ordering rules, all Roth IRAs are treated as one Roth account, contributions are deemed to be the first amount distributed, then conversions – first in, first out – and lastly earnings are distributed.

With the 2017 tax filing date quickly approaching, many taxpayers look to take advantage of IRA contributions to lower taxable income prior to filing. However, before making that contribution, you want to be sure to meet all the eligibility rules.

This week's Slott Report Mailbag answers readers' questions about Roth IRAs, earned income, and stretch IRAs.

A QCD is a qualified charitable distribution. It is a way to transfer funds from your IRA to a qualifying charity as a non-taxable distribution. It can also satisfy your RMD (required minimum distribution) for the year. You must be at least age 70½ at the time of the transaction to qualify. There are four things that you must know.