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.
Guidance on the tax code takes many forms. Some are universal and apply to everyone. Other forms of guidance apply only to the taxpayer who asked for the guidance. Following is the hierarchy of tax guidance and how it interacts with retirement plans.
This week's Slott Report Mailbag looks at the possibility of converting a 403(b) to a Roth IRA and outlines the qualified charitable distribution (QCD) process and who is eligible to take advantage of it.
This week's Slott Report Mailbag answers a popular required minimum distribution (RMDs) question - can my sister take the inherited IRA RMD for both of us? - and another consumer's inquiry on Roth conversion tax reporting.
You took a distribution from your employer plan or another IRA and the receiving company put it in the wrong account. Your IRA company did not process your 72(t) distribution in the correct amount. An advisor/salesman told you that the company offering a “great” investment could hold it as an IRA. Someone at the bank told you that you could do a rollover in 90 days, or that you could roll over more than one IRA distribution in a year. You get the idea. So who is at fault for these issues?
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.
Marriage changes a lot of things. Some things are not quite as obvious as others. We walk you through the key changes to your IRAs, Roth IRAs and overall retirement planning.
Another edition of the Slott Report Mailbag examines the power and process behind a stretch IRA and answers a tricky question about using the cost basis of employer stock to satisfy required minimum distributions (RMDs).
As with most IRA/tax strategies, the net unrealized appreciation (NUA) strategy comes with a few “don’ts.” Any one of these could mean a loss of your ability to take advantage of the NUA tax benefit.
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).
