The Slott Report

Roth Conversions and Qualified Charitable Distributions: Today’s Slott Report Mailbag

QUESTION:I am 67 years old and have a Roth IRA that is over 5 years old. I would like to perform some annual 401(k)-to-Roth IRA conversions before I become subject to required minimum distributions (RMDs) on my 401(k) when I turn age 73. I am aware that I will need to pay income taxes on the conversions themselves, but there is a lot of conflicting information out there on what happens with the earnings on the converted funds after they move to the Roth IRA.

The “Still-Working Exception” and December 31 Retirement

As the end of the year approaches, you may have plans to retire on December 31.However, if you are using the “still-working exception” to defer required minimum distributions (RMDs) from your 401(k) (or other company plan), you may want to delay your retirement into 2026.

2025 Year-End Retirement Account Deadlines

The end of the year always brings a flurry of retirement account deadlines and planning opportunities. This year is no different. And, new for 2025, the One Big Beautiful Bill Act (OBBBA) brings new considerations, especially for Roth conversion planning.

Do QCDs Actually Reduce AGI?

It has come to our attention that confusion exists as to how qualified charitable distributions (QCDs) impact one’s taxes. It is said that QCDs can reduce adjusted gross income (AGI). But is this true? Yes, it is true…but there is more to the story. Simply “doing a QCD” is not a magic AGI-reduction bullet.