The New York Times ran an article on June 13th titled, "Using Your 401(k) to Buy a Small Business," and we feel compelled to discuss the piece and provide a few words of warning on using what is called a ROBS (Rollovers as Business Start-ups) transaction. Ed Slott goes through the article and adds his own expert retirement planning perspective in this IRAtv video below.
Happy Friday! So, let's say you are leaving or have left your employer. What happens to your retirement plan funds? There are options other than taking a taxable distribution of your retirement account balance.
In many of our writings we refer to the most popular types of qualified retirement plans, such as 403(b)s and 401(k)s. While these are two very distinct plans with many differing rules, they do share several commonalities. In particular, the main purpose of each is to provide participants with an easy venue for saving and investing for retirement on a tax-beneficial basis. Both have taken a more prominent role as employers continue to jettison traditional pension plans.
This week's
Slott Report Mailbag answers questions about spousal beneficiaries, inherited IRAs and keeping the Stretch IRA provision (biggest benefit in the tax code!) for your heirs and required minimum distributions.
As always, we stress the importance of working with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Find one in your area at this link.1.Ed:I have your book, but unfortunately it is at my cabin so I don't have access right now. I am inheriting a Roth IRA from my wife, who recently passed away at 65. It was converted to a Roth in December 2008. First question: Is it better to keep it as a separate Roth IRA, or add it into my existing Roth IRA?
This week's Slott Report Mailbag includes questions on taking required minimum distributions from Roth IRAs (do you have to?), handling 401(k)s and Roth IRAs and using trustee-to-trustee transfers to set you up for retirement.
This week's Slott Report Mailbag includes questions on required minimum distributions (RMDs) (what to take from what accounts) and the ever-popular Roth IRA 5-year rules...seriously, we get several questions on these ordering rules each week. Click to read this week's Q&A with our IRA Technical Consultant.
Financial Services Organization TIAA-CREF recently conducted a survey among Americans to gauge their understanding of IRAs. The less than stellar results are not surprising. We take a look at the survey below.
Tax time is drawing near, and as expected, we had several questions about IRA and Roth IRA contributions in this week's Slott Report Mailbag. We answer those questions as well as a question on converting an IRA to a Roth IRA near retirement.
This week's Slott Report Mailbag answers questions about reporting qualified charitable distributions on your tax return, rolling after-tax 401(k) contributions to a Roth IRA and taking Roth IRA losses if the investment has lost substantial value.
This week's Slott Report Mailbag includes questions about converting an employer-based 401(k) to a Roth IRA, the use of trusteed IRAs and what to do if you want to make an IRA contribution from money you earned at the end of 2011, but didn't receive until 2012.
