This is the final part of a two-part article examining six options individuals have for their retirement plan benefits when they leave an employer or become their own boss. In the first part, we covered three options (rolling over to a Traditional IRA, taking a lump sum distribution, leaving it in the plan). We finish our guide with the last three options and provide some closing words of wisdom when considering which choice is best for you.
Some of the trickiest IRA situations involving the Roth IRA 5-year rules. We receive questions about them constantly with each situation just a little bit different than the others. In this week's Slott Report Mailbag, we answer questions on the 5-year rules as well as an inquiry about Roth 401(k) transfer provisions.
One of the most common questions asked during tax season is, "Do I have to file a tax return?" The answer, of course, is a bit complicated, but in general, if your income is equal to or greater than the sum of the standard deduction plus your personal exemption, you must file a return. The standard deduction is higher for those 65 or older, so age makes a difference in some cases.
Numerous tax changes are in store for individuals in 2012. It's very difficult, however, to write with any degree of certainty about those affecting your income taxes because Congress has shown a tendency to make retroactive changes at any point in time. A number of income tax provisions that affected individual tax payers expired at the end of 2011. See some examples below.
You will have income tax due if you went through with a 2010 Roth conversion, so make sure your tax return includes deferred income. Did you do a Roth conversion in 2010 and take the default option of deferring the income to 2011 and 2012?
IRAs can be tricky, especially when you are a beneficiary trying to convert the funds to tax-free territory. We answer a question on that subject, as well as questions on IRA rollover rules and Roth IRA distributions in this week's Slott Report Mailbag.
IRS released its "Dirty Dozen Tax Scams for 2012" on February 16, 2012. Number one on the list this year - Identity Theft. We detail this problem and how you can protect yourself below.
In another installment of MarketWatch's video series, Andrea Coombes interviews Ed Slott and Jack Nuckolls about the complexities of IRAs and taxes, while asking a question many consumers are asking their financial advisor at this very minute: Is it time for a Roth IRA? This video walks you through the process along with the Roth conversion conversation every consumer should have with their financial advisor. This video is part of a three-video series.
In an interview with MarketWatch's Andrea Coombes, Ed Slott and Jack Nuckolls discuss strategies to reduce your tax bill before 2013. Taxes are going up (tax on investment income, 3.8% healthcare surtax, income tax rates for the highest earners are heading to 39.6%), and Ed provides several strategies you can use to avoid the uncertainty of future tax rates.
Ed Slott was interviewed by MarketWatch's Andrea Coombes in a multi-video discussion on IRAs, how to avoid a big tax hit and how to avoid the penalty-induced mistakes many individuals make. This first video features Ed and Jack Nuckolls in a discussion about IRA mistakes you don't want to make...unless you want to see penalties and plenty of taxes in your future.
