This week's Slott Report Mailbag dives into details on SIMPLE IRAs and SEP IRAs, explains the legality of having a 401(k) versus a Roth 401(k) and walks the questioner through the options an estate has as an IRA beneficiary. As always, we stress the importance of working with a competent, educated financial advisor to keep your retirement nest egg safe and secure.
In recent weeks, the Social Security Administration has released a flurry of information, including several “Emergency Messages,” aimed at clarifying some of the changes to the Social Security rules made by the Bipartisan Budget Act of 2015. The guidance addressed a number of critical, previously unanswered questions, and is poised to impact many of those in or approaching retirement. Here is a list of the key updates, followed by a more comprehensive explanation of the guidance.
What is the RBD? RBD stands for required beginning date. It is the date by which an IRA owner must take their first required minimum distribution (RMD) in order to avoid a 50% penalty. Generally, an individual must take their first distribution from a retirement account in the year they turn age 70 ½. The following points clarify exactly when you must take your first distribution.
You converted your traditional IRA to a Roth IRA. Then, you recharacterized those Roth IRA funds back to a traditional IRA. You are not alone. Many taxpayers recharacterize Roth IRA conversions. This is especially common in times of market volatility. For many taxpayers, a recharacterization makes sense when faced with a Roth IRA that declined in value since the conversion. Why pay a tax bill on value that no longer exists? After the recharacterizion, you may be wondering... what next? Here are some things you need to know.
This past weekend, advisors from all across the country gathered at the Mirage Hotel and Casino in Las Vegas, Nevada to spend two days with the Ed Slott and Company team for our latest Instant IRA Success 2-Day IRA Workshop. Over the two days, there were – no doubt – hundreds of questions asked and answered by our team. Here are three of our favorites, along with the answers.
Our post-Instant-IRA-Success Slott Report Mailbag examines two issues we covered extensively in Las Vegas. We answer a consumer's question on how to take a required minimum distribution (RMD) prior to taking a Roth conversion. Also, we provide guidance on whether a spouse with no taxable compensation can make an IRA contribution.
There are two types of tax reporting for IRA accounts: the reporting that is mandatory for IRA custodians and the subsequent reporting that must be done by the IRA owner or beneficiary. Here's what you need to know about each.
With tax season well underway, you may be considering contributing to an IRA. For many people, the IRA options are confusing. There are traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs. Which IRA is right for you? Well, if you are not an employer and are not self-employed, you may not decide on your own to contribute to a SIMPLE or SEP IRA. That leaves traditional and Roth IRAs. Which is best for your retirement savings needs? We examine your options.
On Tuesday, February 9, 2016, President Obama released his Fiscal Year 2017 Budget – his final budget proposal as President of the United States. Having seen none of his 14 retirement account-related proposals from last year’s budget enacted, the President has included them all again in this year’s budget. In addition, this year’s budget features one additional significant retirement account-related change. In this article, you will find a complete list of the 15 provisions in the President’s budget that directly relate to retirement accounts. For each, you’ll see whether they are new or carryovers from previous years, a description of each, as well as some commentary to provide insight and perspective.
The qualified charitable distribution (QCD) questions keep rolling in - and we aren't surprised. After all, the QCD provision is one of the biggest breaks in the tax code and it's of tremendous value to the charitably inclined. In this week's Slott Report Mailbag, we also walk a reader through the general IRA beneficiary provisions in a community property state.
