One of the benefits of a Roth IRA is that contributions can always be distributed out of the Roth IRA with no tax, and no early distribution penalty for those that are under age 59½. But, you have to be able to prove to IRS that you are taking a distribution of contributions only. Under the distribution ordering rules, all Roth IRAs are treated as one Roth account, contributions are deemed to be the first amount distributed, then conversions – first in, first out – and lastly earnings are distributed.
With the 2017 tax filing date quickly approaching, many taxpayers look to take advantage of IRA contributions to lower taxable income prior to filing. However, before making that contribution, you want to be sure to meet all the eligibility rules.
This week's Slott Report Mailbag answers readers' questions about Roth IRAs, earned income, and stretch IRAs.
A QCD is a qualified charitable distribution. It is a way to transfer funds from your IRA to a qualifying charity as a non-taxable distribution. It can also satisfy your RMD (required minimum distribution) for the year. You must be at least age 70½ at the time of the transaction to qualify. There are four things that you must know.
For many Americans, their IRA is their largest asset. It is not surprising then that in times of financial trouble, they may want to turn to their IRA as quick source of cash. If this is your situation and you are thinking about using your IRA for a short-term loan, here is what you need to know.
This week's Slott Report Mailbag answers readers' questions about conversions, missed RMDs, and inherited IRAs.
Tax return information is confidential. As the April 17th tax filing date approaches, pay attention to keeping your tax return information out of the hands of those who could cause you harm.
One of the many issues facing self-employed individuals is how to save for retirement. Of course, one option is to open a traditional or Roth IRA. However, the annual maximum contribution ($5,500 for 2018 if you are under age 50) is low in terms of retirement planning. Therefore, the self-employed often look to adopt employer-sponsored retirement plans. While there are a number of options, the Solo 401(k) is one of the most popular arrangements. Not only does the Solo 401(k) produce higher contribution levels than other arrangements, but employer contributions are tax deductible! Of course, like anything else, there are pros and cons.
This week's Q&A Mailbag answers reader questions on over contributions to a 401(k) and distributions from an inherited IRA.
Spousal IRAs are designed to allow a working spouse to make IRA contributions for a spouse who does not have enough earned income to make their own IRA contributions.
