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.
Roth IRAs offer many benefits. Without a doubt, the ability to accumulate funds for retirement on a tax-free basis is clearly their biggest perk, but another huge advantage, relative to other retirement accounts, is that they do not have any required minimum distributions (RMDs) during your lifetime. However, that's not true for all Roth accounts. Make sure that you know about the RMDs the following Roth accounts do have.
It's time for another edition of The Slott Report Mailbag, where we answer consumer questions on situations involving Roth conversions and the pro-rata rule, whether you need earned income to contribute to a Roth IRA and certain Roth IRA tax scenarios (reminder: Tax Day is Monday!)
We are down to the wire! The tax-filing deadline is rapidly approaching and time is running out to make your 2015 IRA contribution. In the final few days, before the clock runs out, here are 10 quick last minute tips to keep in mind about contributing to an IRA.
It's time for another edition of The Slott Report Mailbag, where we answer consumer questions on required minimum distribution (RMD) procedures with IRA annuities, The Roth conversion conversation and the Roth IRA beneficiary rules for spouses.
When it comes to investing your IRAs, you are in the driver’s seat. If an investment is no longer working for you and another opportunity better fits your retirement savings strategy, you may want to move your IRA funds. You are probably aware that some investments may limit your ability to do this or impose penalties, but often overlooked are the serious consequences that will occur if you run afoul of the IRA rules when trying to make your move. Before you decide to take a distribution from your IRA, you will want to understand three very important rules that apply to rollovers.
Can you contribute to both an IRA and a Roth IRA in the same year? Yes, if you follow the rules. This Monday afternoon blog post discusses those rules and the complications that occur if you don't follow them.
Have you made your 2015 IRA contribution? If not, why not? Here are five myths that are commonly cited as reasons for not contributing to an IRA. Don’t miss out on your 2015 IRA contribution because you wrongly believe one of them applies to you.
It's time for another edition of The Slott Report Mailbag, where we answer a parent's question on whether her son's Roth IRA contributions were done within the rules, assess whether an IRA account can be converted to a Roth IRA before age 59 ½ and examine an employee's pro-rata complexities with moving after-tax 401(k) funds to both a traditional and Roth IRA.
IRAs and 401(k)s 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 help provide an income source in retirement. That said, there are also many differences between IRAs and 401(k)s. Some are relatively benign and probably won’t impact you very much, but other differences can make one type of account far superior to the other in your particular situation. With that in mind, today, we explore 5 things you can do with an IRA that you can’t with a 401(k).
