IRA

How the Contribution Limits Work When You’re in Two Plans

The start of the new year is a good time for a refresher course on the contribution limits that apply when someone is in two different retirement plans at the same time or at different times within the same year (e.g., after changing jobs). The rules are challenging because there are two different contribution limits to worry about – the “elective deferral limit” and the “overall contribution limit.”

Outstanding Rollovers – What You Need to Know

The rules for rolling over IRA distributions can be complicated. These rules can become especially challenging at the end of the calendar year. If you are taking a distribution from your IRA at end of 2023 and considering a rollover that may not be completed until 2024, here are four facts you will want to know.

529 Plans and Qualified Charitable Distributions: Today’s Slott Report Mailbag

QUESTION:I have been funding a 529 account for over 15 years and no longer need to add deposits.Could I change the beneficiary to myself and then convert to a Roth IRA, assuming I have met the 5-year deposit hurdle as well? Has the government ruled on when the clock starts for the 15 years? Meaning, is it from when you open the account or does it restart when you change the beneficiary?

529-to-Roth: Now Available, But Questions Persist

Just over a year ago (December 2022), the SECURE 2.0 Act was signed into law. That legislation contained an extensively discussed provision – allowing excess dollars in a 529 college savings plan to be rolled over to a Roth IRA. At the time, we knew there were a couple of unanswered questions in the law as it pertained to the 529-to-Roth transaction. However, since the 529-to-Roth rollover was not permitted until this year (2024), it was anticipated that any nebulous language or confusion would be cleared up well before the 2024 calendar change.

Peak 65 and Your IRA

In 2024, more Americans than ever before will reach age 65. By this summer, 12,000 baby boomers will celebrate their 65th birthday each day. This demographic milestone has been called “Peak 65.” If you are in this group, what does Peak 65 mean for your IRA?

Backdoor Roth IRA Baggage

We hear it all the time. “If your income is too high for a direct Roth IRA contribution, just do a Backdoor Roth. Easy-peasy!”Not so fast, my friend. A Backdoor Roth IRA transaction is like a musclebound hotel bellhop – it can carry a lot of baggage. However, before we can discuss said baggage…

RMD CALCULATION AND TRUSTS FOR DISABLED BENEFICIARIES: TODAY’S SLOTT REORT MAILBAG

Question:Hoping you can help with this technical question. I am over 73. My traditional IRA balance as of 12/31/22 was $0.00. I made a $7,500 non-deductible traditional IRA contribution in 2023 and converted the full balance ($7,508.23, including $8.23 of interest) to a Roth IRA in 2023. I did not do an RMD prior to the conversion, but I did not have a traditional IRA balance at the end of 2022 and my 2023 traditional IRA contribution was non-deductible.

NEW ROTH PROVISIONS EFFECTIVE IN 2024

When the bell dropped in Times Square last Sunday night, a bunch of new provisions from the SECURE 2.0 legislation kicked in. This article will focus on the Roth-related changes that are effective in 2024.

Two Holiday Lists

The SECURE 2.0 Act contained over 90 sections and included numerous IRA and retirement account changes. Additionally, the legislation incorporated staggered effective dates over multiple years. Here is a list of 10 items from the Act scheduled to come on-line in 2024:

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