In Private Letter Ruling (PLR) 201425023, released by IRS on June 20, 2014, the IRS ruled that a surviving spouse who received IRA proceeds through a trust, which was the beneficiary of her deceased husband’s IRA, could not roll over the IRA funds she received because more than 60 days had passed since she received the funds. The IRS denied her request for more time to do the rollover because she didn’t provide sufficient proof of financial institution error. More importantly, the PLR is a good example of what not to do when a trust is the beneficiary of an IRA.
Richard has an IRA and has named his wife Diane as the beneficiary. Richard dies unexpectedly at age 52. Diane is 50. What should she do with Richard’s IRA?This is a case when the spouse should probably remain a beneficiary of the IRA. Here's why.
You want to make a contribution to a Roth IRA for 2014. As long as you’re working and have compensation (earned income) you can potentially make a Roth IRA contribution of up to $5,500 if you’re under age 50 or $6,500 if you’re age 50 or older this year.
Yesterday, July 1, 2014, the IRS released the Final Regulations for "qualifying longevity annuity contracts" (QLACs). Thanks to these regulations, you will now be able to purchase certain annuity contracts that can be excluded from the fair market value you use to calculate your required minimum distribution (RMD).
There is a one-rollover-per-year rule that applies to IRA distributions. IRA-to-IRA or Roth IRA-to-Roth IRA rollovers are subject to the once-per-year rule. The account owner can only rollover IRA funds once every 12 months. The 12-month period is a full 12 months. Click to read about exceptions to the Once-Per-Year IRA Rollover Rule.
"Can I still make an IRA contribution?
We get this question a lot at this time of year. A client has his tax return on extension, the return is being prepared now, can the client still make an IRA contribution? Click to find out.
Retirement planning is complicated. It's a personal and situational endeavor with plenty of possible pitfalls in the way of success. This week's Slott Report Mailbag illustrates several various situations in which the individual sought help from either publications or professionals and is still left confused. Click to read this week's Q&A with our IRA Technical Consultant.
I was appearing as a guest on a radio show yesterday when a listener called in, saying that his Roth IRA had lost substantial value. Ultimately, the caller wanted to know if he could claim a deduction for his Roth IRA loss. I told him that the answer was probably “no,” but that a question like that would be exceedingly difficult to answer for sure, given the time I had left on air. Here is a more detailed answer to his question.
