We are beginning a new monthly feature - a content creation stream of each month's best retirement and retirement planning facts and figures. Before each fact, you’ll find my own brief commentary, and after each fact, you’ll find the original article from which the fact was pulled should you be interested in further reading.
With the Roth recharacterization deadline approaching (October 15), this week's Slott Report Mailbag answers a great question about the 30-day waiting period on reconverting funds after a recharacterization and further clarifies a reader's question on utilizing the stretch IRA.
A question we are frequently asked is, "can I convert my inherited retirement plan funds to an inherited Roth IRA?" The answer is no – and yes. The explain when you can and when you can't in today's article.
An article titled “If You Have Savings In Your 20s, You’re Doing Something Wrong” has recently gone viral. The article, which got over two million likes on Facebook, suggests that saving for your future in your twenties is a bad idea. It suggests that if you are in your twenties, you would be better off going out, spending money and enjoying life rather than saving for the future. We explain why you don't have to take an all-or-nothing approach to savings decisions in your 20s.
This week's Slott Report Mailbag looks at QLACs (qualified longevity annuity contracts) and whether an inheritor of several IRAs can take all of his or her RMDs (required minimum distributions) from one of the inherited IRAs.
You opened your IRA account 20 years ago and named your spouse as the beneficiary of your IRA. Life has been good for the last 20 years, and you are still married to that same spouse and that same financial institution is still on the corner. But should you still have the same beneficiary form? A lot has changed in 20 years. You've updated your wardrobe and car. And you probably need to update your beneficiary form.
Are you named as a beneficiary on an IRA? It probably is not your intention to have a large portion of that inherited IRA go to taxes. How can you avoid this unfortunate outcome and maximize your IRA tax advantages? What is the most important thing you need to know as an IRA beneficiary?
The year-end required minimum distribution (RMD) questions are starting to come in. This one came in from an advisor. Melissa and her spouse Gary both turned age 70 this year. Melissa’s birthday is in May and Gary’s is in September. Who has an RMD for this year?
This week's Slott Report Mailbag answers questions on the tax "sweet spot" in retirement, the tax and penalty impact on a non-spouse beneficiary's inherited Roth IRA distributions and the future of the stretch IRA.
ABLE (Achieve a Better Living Experience) accounts are a brand new type of tax-favored savings account created to benefit young disabled persons. One of the questions that has been asked with increasing frequency is, “Should I use a special needs trust or an ABLE account to safeguard my money [for my special needs beneficiary]?” We outline 5 key areas to consider, along with a brief description of whether an ABLE account or special needs trust gets the edge in that area.
