This week's Slott Report Mailbag looks at the complications involved with pre- and after-tax contributions to different retirement plans and the rules involved with conversions and distributions.
Most people are aware by now that Prince, the performer, passed away recently at the age of 57. So far, no one has been able to locate his will. Unlike most of us, Prince had a huge amount of assets held personally, in his own name. That means a long probate process and lots of fees for the lawyers. And that’s without any dissension among his family members. Here are the estate planning lessons to learn from Prince's mistakes.
Are you a 20- or 30-something year old or do you know any of those individuals? You’ve now paid your taxes for 2015, take a deep breath, and start planning for your retirement. You will most likely have no pension other than Social Security, if it is still around. Social Security will not cover all of your living expenses just as Medicare will not cover all of your medical expenses. You need to start saving and planning for your retirement NOW. Here's how.
This week's Slott Report Mailbag answers a question on how to distribute converted funds from a Roth IRA, discusses special required minimum distribution (RMD) rules for IRA beneficiaries and looks at the fine print of IRS Form 8606.
401(k)s and IRAs share a lot of similarities. They are both retirement plans. They both can help you lower your tax bill today, provide tax-deferred growth and can help provide an income source in retirement. That said, there are also many differences between the two types of retirement accounts. Some are relatively insignificant and probably won’t impact your planning or decision-making process, but other differences can make one type of account far superior to the other in your particular situation. With that in mind, we explore 5 things you can do with a 401(k) that you can’t do with an IRA.
Are you under age 59 ½ and looking to access your IRA funds without being hit with the 10% early distribution penalty? Taking substantially equal periodic payments, or “72(t)” payments as they are sometimes called, from your IRA may be an option for you. With 72(t) payments, you can take early distributions from your IRA and avoid a penalty. Sound too good to be true? Well, these payments are subject to many strict rules. You should understand the restrictions before you jump in. Here are 10 rules you should know about 72(t) payments before you decide that they are the answer for you.
This edition of The Slott Report Mailbag looks at minimizing the upfront tax impact of a Roth IRA conversion, highlights the 401(k) and SEP IRA contribution limits and answers a question on the BIGGEST planning opportunity in the tax code - net unrealized appreciation.
Do you have a Roth IRA or are you thinking about starting one? You may have heard that a “five-year” rule is important for these accounts. Well, that’s just the beginning of the story. There are actually three different five-year rules for Roth IRAs. You need to understand each of them to maximize the benefits of your Roth IRA.
There has been a lot of talk, and some new regulations, regarding advice given to plan participants when they have the opportunity to move funds out of their employer plan. Let's use an example to illustrate the options available.
For years, the Department of Labor (DOL) issued exemptions that were extraordinarily narrow in scope and very much transaction-based. In a complete reversal, however, on the same day as it unveiled its new Fiduciary Rule, the DOL also unveiled a 300+ page document that introduced a new, broad, principal-based prohibited transaction exemption, known as the Best Interest Contract Exemption. Here's what advisors need to know.
