One of the positive outcomes of the new IRS final SECURE Act regulations on required minimum distributions (RMDs), released on July 18, is that more beneficiaries will be able to stretch RMDs over their lifetime.
QUESTION:
I inherited both a traditional and a Roth IRA from my significant other (non-spouse) who passed away in 2021. He had started taking required minimum distributions (RMDs). I am less than 10 years younger than he was. Question is: do I or do I not have to empty both accounts within 10 years of his death? No one is giving me an answer one way or another.
By Sarah Brenner, JDDirector of Retirement Education In newly released final required minimum distribution (RMD) regulations, the IRS is doubling...
In Part 1 (July 17), I discussed 5-year clock issues when a non-spouse beneficiary inherits a Roth IRA. In Part 2, I will hit on the important concepts and options available when a spouse inherits a Roth IRA.
Question:
Can a Roth IRA be rolled into a Roth 401k?
Answer:
While a Roth 401(k) can be rolled into a Roth IRA, the reverse is not true. You cannot roll a Roth IRA into a Roth 401(k). The only place where funds from a Roth IRA can be rolled over to is another Roth IRA.
In the July 22, 2024 Slott Report, my colleague Sarah Brenner explained how the IRS, in its final SECURE Act required minimum distribution (RMD) regulations issued on July 18, did not budge on a controversial position it had taken in its 2022 proposed regulations.
On July 18, 2024, the IRS issued final required minimum distribution (RMD) regulations under the 2020 SECURE Act. The newly issued regulations fine-tune existing rules for trust beneficiaries and aggregation of RMDs. They also eliminate burdensome rules for certain spouse beneficiaries and documentation requirements for certain IRA beneficiaries.
Question:
One of our clients wants to cash out his IRA and then roll it into a Roth IRA within 60 days. Can this be done directly, or does it have to be rolled back into an IRA first and then converted?
When an IRA owner does a Roth conversion, there is typically a 5-year clock for the earnings on the converted dollars to be tax free. If a person already had a Roth IRA for 5 years AND is over 59 ½, there is no conversion clock to worry about. For these people, Roth IRA distributions will be both tax- and penalty-free.
One of the more interesting rules (if any could be called “interesting”) from the 2022 IRS proposed regulations requires spouse beneficiaries in some situations to take RMDs (required minimum distributions) before doing a spousal rollover.
