The Continued Battles with Inherited IRAs, PSPs, and Rollovers
This week's Slott Report Mailbag looks into Inherited IRAs, Defined Contribution Profit Sharing Plans, and Roth 401K rollovers.
401(k)
Can I Open a Roth IRA and Fund it with my IRA?
This week's Slott Report Mailbag examines ERISA creditor protection differences for 401(k)s and IRAs and answers a consumer's question on funding a Roth IRA.
A Tale of Two IRAs: Using a Series of Substantially Equal Periodic Payments to Fund an Early Retirement
Multiple studies suggest that we often end up retiring earlier than initially anticipated or hoped. One study by JPMorgan Asset Management found that although two-thirds of current workers plan to continue working until age 65, fewer than one in four actually manage to do so. Although the reasons vary, premature retirement poses a two-fold portfolio stress - a shorter accumulation time and a longer withdrawal period. It also presents a potential tax complication when you've not reached 59 ½ - that magic age at which you can withdraw retirement money without an additional 10% premature distribution penalty.
What Now? A Widow’s Story About Making the Right Financial Decisions
In 2006, Alan, a strapping young man who had just turned 50, collapsed and died of a massive heart attack while attending Sunday morning Mass with his wife Karen. Alan and Karen co-owned a business. Alan was a contractor and Karen handled the accounting and billing. Karen was fairly savvy financially. However, because she felt she had to get everything settled “right away” after Alan’s passing, she made several costly mistakes. It's a story you and your clients can learn from.
Relief for Victims of the Louisiana Floods: An Easing of Rules for Hardship Distributions and Loans from Employer Plans
On August 30, 2016 IRS released Announcement 2016-30 that allows for streamlining employer plan loan procedures and liberalizing hardship distribution rules for most employer plans. The following procedures are in effect until January 17, 2017 for victims of the storms and flooding in Louisiana that began on August 11, 2016.
Don’t Make This Common RMD Mistake – It’s a Big Penalty!
With the first group of Baby Boomers turning age 70 ½ this year, there is a whole new group of IRA owners who will begin taking required minimum distributions (RMDs). It is important that they know the rules about aggregating RMDs in order to avoid this frequent mistake made by individuals, advisors, and even IRA custodians and employer plans.
Think You Are Debt Free If You Own an IRA, 401(k), or 403(b)? Think Again
While reasonably basic to an IRA specialist, the 9 ideas below are often overlooked by consumers and many financial practitioners alike who do not specialize in IRAs. Used appropriately, they may often help individuals and families preserve their retirement wealth. Perhaps they can help you too. Consider researching in more depth on your own, or perhaps broach any of the topics you feel may apply to you in more detail with your financial consultant(s).
What is Escheatment and How Does it Affect Your Retirement Accounts?
How is it determined that an IRA has no owner? This will depend on both state law and the procedures in place at the institution holding your IRA or employer plan assets. If you have an IRA or an old employer plan where you are no longer making contributions, then there are no transactions taking place within the account. This could leave the account open to escheatment.
Can I Still Contribute to My 401(k) as a Part-Time Employee?
This week's Slott Report Mailbag discusses complex retirement planning topics with a charitable uncle interested in leaving his Roth IRAs to his grandnephews and nieces and an employee moving to part-time work who is still interested in contributing to his 401(k).
You Can’t Finance – But You Can Save For – Your Retirement
Are you a 20- or 30-something year old or do you know any of those individuals? You’ve now paid your taxes for 2015, take a deep breath, and start planning for your retirement. You will most likely have no pension other than Social Security, if it is still around. Social Security will not cover all of your living expenses just as Medicare will not cover all of your medical expenses. You need to start saving and planning for your retirement NOW. Here's how.
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