This week's Slott Report Mailbag answers questions on how Roth conversions affect Medicare premiums, how the rules governing IRA rollovers have changed for 2015 and what individuals who converted to Roth IRAs in 2010 are now free to do with the funds.
One of the most common questions that an IRA owner subject to RMDs (required minimum distributions) asks is, "When should I take my RMD? Is it better to take the RMD early in the year? Later in the year?" There’s really no right or wrong answer, but rather, depending on your personal situation, either might make sense. Here are a few factors to consider when making your decision.
The IRS recently released the 2014 version of Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. The form, along with the accompanying instructions, is updated each year and is filed by the IRA owner to report certain penalty taxes they may owe with respect to their IRA. What are these tax penalties and how could they affect your account value?
A taxpayer received a distribution from his company retirement plan after separating from service with the intent to make a direct rollover into a Roth IRA. However, things don’t always go by way of the best intentions. The financial institution deposited the distribution into an IRA instead of a Roth IRA. Private Letter Ruling 201452025 got IRS involved.
Private letter ruling (PLR) requests for IRAs are a means for taxpayers to request forgiveness from IRS and to allow them to complete an action that has, for some reason, been derailed. For instance, you can ask IRS to allow you to complete a Roth recharacterization after the deadline has passed or to allow you to complete a 60-day rollover after the 60 days have passed. This all comes with a substantial cost. Here are the facts and figures for 2015.
The power of compounding. It's value over time is illustrated by IRA Technical Expert Jeffrey Levine in this IRAtv video. Jeffrey details the IRA and Roth IRA contribution parameters and looks at how making a contribution early in the year can benefit you over the long term.
Several critical tax rules will affect financial advisors' earning potential in 2015. You need to be armed with the knowledge to both gain new business and make sure your current clients avoid costly errors. Register today for Ed's webcasts.
2015 has brought several important changes in the retirement planning world. From the once-per-year IRA rollover rule to QLACs and myRAs, IRA Technical Expert Beverly DeVeny highlights the key changes you must be aware of to retain current clients and capture new business in the new year.
Today is the last day of 2014 already. That means we’re just hours away from New Year’s Eve parties, talk of resolutions we’re not really going to keep, and perhaps, a bit of the old bubbly. And of course, no New Year’s celebration is complete without a final countdown. So with that in mind, the final 2014 Slott Report article counts down, 10 to 1, to the new year IRA-style.
The major Qualified Charitable Distribution (QCD) announcement pushed off last week's Slott Report Mailbag until this week, and it couldn't come at a better time. With 2014 hanging on by its coattails, year-end retirement planning is nearing its conclusion. In crunch time, advisors and consumers are asking specific questions about taking required minimum distributions (RMDs). It's only fitting that we received two questions on the topic this week.
