inherited IRA

SECURE 2.0 Modifies Rules for Special Needs Trusts

The SECURE Act changed the game for inherited IRAs. For most beneficiaries, the stretch IRA is gone and has been replaced by the 10-year payout rule. However, the SECURE Act carved out some rules for special needs trusts for disabled or chronically ill beneficiaries that allow the stretch to continue for these beneficiaries.

Inherited IRAs and RMD Tables: Today’s Slott Report Mailbag

Question:Hello! I need clarification regarding RMD statements for customers who hold inherited IRAs or inherited Roth IRAs. I have not been able to find a clear answer to the following question:Is the custodian required to provide an RMD statement to owners of inherited IRAs (or inherited Roth IRAs)?Thank you!

Once-Per-Year Rollovers and RMDs for Inherited IRAs: Today’s Slott Report Mailbag

Question:Good morning,I have a client who took out $100K from his SEP IRA and put the funds back in on 8/19/22 -- within 60 days from the distribution. The client has now called me and asked if he can take the same $100K out and move it to his Roth IRA and pay taxes on it. Is he allowed to do this, or do we have to wait until 2023 to do the conversion?

RMDs and Inherited IRAs: Today’s Slott Report Mailbag

Question:I must take an RMD this year, based on 12/31/2021 account values. My current account values are much less than those of 12/31/2021. This is typical, I’m sure. Is there any chance Congress will recognize this hardship and grant some relief similar to that granted several years ago when the virus pandemic began?

ROTH CONVERSIONS AND INHERITED IRA RMDS: TODAY’S SLOTT REPORT MAILBAG

Question:Late in December, 2021, a taxpayer (under age 59 ½) takes a distribution of his (traditional, not Roth) 401(k), and has 20% withheld for Federal tax. Early in January, 2022, the full 100% of the distribution is deposited in a Roth IRA. Does this avoid the 10% penalty for early distribution? Is this reportable as a Roth conversion in 2022 or 2021?

RMDs & Roth Conversions: Today’s Slott Report Mailbag

Question:My husband is the sole beneficiary of a Traditional IRA owned by his cousin, who recently passed away. From my research, I believe my husband fits the exception criteria of "eligible designated beneficiary" in that he is not more than 10 years younger than the deceased (he is 9 years younger…he is age 72 and the deceased was age 81). As such, from what I read, he does not have to empty the inherited IRA account within 10 years and can withdraw his RMDs using the stretch IRA method.

Inherited IRA Q&As

Each week the Ed Slott team answers questions from financial advisors across the country. Sometimes we see a pattern in repeating questions, sometimes the questions are relatively basic, and sometimes they are real stumpers. We never know what the next phone call or email will bring. Recently, we’ve fielded a rash of inherited IRA inquiries. Here are a few:

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