QCDs and the Roth 5-year Clock: Today’s Slott Report Mailbag
By Andy Ives, CFP®, AIF®IRA AnalystFollow Us on X: @theslottreport QUESTION: My brother passed away in May 2023. He had a small...
inherited IRA
NUA and Roth IRA Contributions: Today’s Slott Report Mailbag
Question:
My client’s husband recently passed away. We have converted her late husband’s 401(k) to a beneficiary 401(k) in preparation for transferring it to a beneficiary (inherited) IRA. There is company stock inside the 401(k) currently. We want to leverage the NUA (net unrealized appreciation) tax strategy. Is stock inside a beneficiary 401(k) eligible for NUA, the same as the stock would have been when he was alive?
All the best,
NUA and Roth IRA Contributions: Today’s Slott Report Mailbag
Question:
My client’s husband recently passed away. We have converted her late husband’s 401(k) to a beneficiary 401(k) in preparation for transferring it to a beneficiary (inherited) IRA. There is company stock inside the 401(k) currently. We want to leverage the NUA (net unrealized appreciation) tax strategy. Is stock inside a beneficiary 401(k) eligible for NUA, the same as the stock would have been when he was alive?
All the best,
One Beneficiary, Three IRAs, Three Different Payout Rules
An advisor called and said his 75-year-old client had just passed away. He had questions about the payout rules applicable to the three IRAs the client left behind: a traditional IRA, a Roth IRA, and an inherited IRA from his sister. I asked who the beneficiaries were.
How to Lose an Inherited IRA and Gain a Big Tax Bill
Did you inherit an IRA from someone who is NOT your spouse? This is not uncommon. Maybe you inherited from a sibling or a parent or a friend. If this is your situation, proceed with caution! For nonspouse beneficiaries, a wrong move can result in disastrous consequences. So, take your time and do it right.
Top 10 IRA “Popular Confusions”
By Andy Ives, CFP®, AIF®IRA AnalystFollow Us on X: @theslottreport The Ed Slott team answers thousands of IRA and work plan questions...
Rules for Inherited IRAs that May Surprise Nonspouse Beneficiaries
Many IRA assets will ultimately go to nonspouse beneficiaries. When these beneficiaries inherit the funds, special rules kick in. Inherited IRAs are not like your own personal IRA account. Here are seven rules for inherited IRAs that may surprise you if you are a nonspouse beneficiary:
Roth Conversions and Inherited Roth IRA RMDs: Today’s Slott Report Mailbag
Question:
Hello,
If you do a Roth conversion from an IRA, does that qualify as your required minimum distribution (RMD) for the year? Or is it separate and apart from the RMD?
Thank you,
Successor Beneficiaries and IRA Rollovers: Today’s Slott Report Mailbag
Question:
I am struggling to find an answer to my situation. My wife’s 82-year old father passed away about 8 years ago and he was taking IRA distributions. A portion of his IRA was inherited. Since then, my wife had been taking RMDs based on her life expectancy as an old stretch IRA.
RMD Relief? No Thank You!
The IRS unleashed massive confusion last year. To the surprise of many, it released proposed SECURE Act regulations requiring beneficiaries (on some occasions) to take required minimum distributions (RMDs) during the 10-year payout period.
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