Jenny has a 401(k) plan at work and she has an IRA. Jenny is 72 but is still working. Her employer plan has a “still working” exception so Jenny does not have to take required minimum distributions (RMDs) from her plan. However, she does have to take RMDs from her IRA.
You are 70 ½ or older this year so you have a required minimum distribution (RMD). But, you don’t need the money or you don’t want to increase your income and pay more in income tax so you don’t want to take your RMD. What happens if you just ignore your RMD and do not take it?
This week's Slott Report Mailbag looks into beneficiary IRA's with specific examples when over or under 70 1/2 years old with QCDs, RMDs as well as pre and post tax contributions.
The deadline of October 15th has passed for recharacterizing Roth conversions done in 2015. (You have until October 15, 2017 to recharacterize your 2016 Roth conversions.) Now that you have recharacterized a 2015 conversion, what comes next? Can you reconvert those funds? The answer is yes, after a waiting period.
This week's Slott Report Mailbag looks at taxes associated with converting a Traditional IRA into a Roth; we also have a 2-part question regarding a living trust as the designated beneficiary on a 403b Plan -- that living trust then designated her children as equal beneficiaries.
This week's Slott Report Mailbag answers a couple questions regarding beneficiaries of an IRA.
The word “rollover” is used frequently in writing and talking about distributions from retirement plans. Many times it is used incorrectly. It is crucial that retirement account owners and their advisors know the meaning of the word rollover to safegaurd their savings.
This week's Slott Report Mailbag examines required distributions and moving IRA money to a charity.
Distributions taken from an IRA before attaining the age of 59 ½ are generally subject to an early distribution penalty of 10% of the taxable amount of the distribution. Congress put the penalty in place to deter IRA owners from using their funds before their retirement. However, Congress also realized that sometimes we really do have a need for these funds so they made some exceptions to the penalty. One of these exceptions is the disability exception. But there is a catch.
Distributions taken from an IRA before attaining the age of 59 ½ are generally subject to an early distribution penalty of 10% of the taxable amount of the distribution. Congress put the penalty in place to deter IRA owners from using their funds before their retirement. However, Congress also realized that sometimes we really do have a need for these funds so they made some exceptions to the penalty. One of these exceptions is the disability exception. But there is a catch.
