This week's Slott Report Mailbag looks at several retirement planning complexities, including required minimum distribution (RMD) responsibilities for a non-spouse beneficiary and Social Security benefits for a divorcee.
Dan and Barbara are a couple soon heading into the second half of the retirement game. They had planned, and read, and strategized, and thought they were making sound financial decisions. That's before one meeting discovered they gave away $50,000 in "free" money.
This week's Slott Report Mailbag answers a question on how to distribute converted funds from a Roth IRA, discusses special required minimum distribution (RMD) rules for IRA beneficiaries and looks at the fine print of IRS Form 8606.
401(k)s and IRAs share a lot of similarities. They are both retirement plans. They both can help you lower your tax bill today, provide tax-deferred growth and can help provide an income source in retirement. That said, there are also many differences between the two types of retirement accounts. Some are relatively insignificant and probably won’t impact your planning or decision-making process, but other differences can make one type of account far superior to the other in your particular situation. With that in mind, we explore 5 things you can do with a 401(k) that you can’t do with an IRA.
For years, the Department of Labor (DOL) issued exemptions that were extraordinarily narrow in scope and very much transaction-based. In a complete reversal, however, on the same day as it unveiled its new Fiduciary Rule, the DOL also unveiled a 300+ page document that introduced a new, broad, principal-based prohibited transaction exemption, known as the Best Interest Contract Exemption. Here's what advisors need to know.
Roth IRAs offer many benefits. Without a doubt, the ability to accumulate funds for retirement on a tax-free basis is clearly their biggest perk, but another huge advantage, relative to other retirement accounts, is that they do not have any required minimum distributions (RMDs) during your lifetime. However, that's not true for all Roth accounts. Make sure that you know about the RMDs the following Roth accounts do have.
It's time for another edition of The Slott Report Mailbag, where we answer a parent's question on whether her son's Roth IRA contributions were done within the rules, assess whether an IRA account can be converted to a Roth IRA before age 59 ½ and examine an employee's pro-rata complexities with moving after-tax 401(k) funds to both a traditional and Roth IRA.
IRAs and 401(k)s share a lot of similarities. They are both retirement plans. They both can help you lower your tax bill today, provide tax-deferred growth and help provide an income source in retirement. That said, there are also many differences between IRAs and 401(k)s. Some are relatively benign and probably won’t impact you very much, but other differences can make one type of account far superior to the other in your particular situation. With that in mind, today, we explore 5 things you can do with an IRA that you can’t with a 401(k).
This week's Slott Report Mailbag looks at possible miscues and how to handle them. What constitutes an excess Roth IRA contribution? One individual below has to deal with the 6% penalty while another doesn't. We explain why.
Roth IRAs can be powerful retirement planning tools. They allow you to put money aside today that can grow tax free for the remainder of your lifetime, and there are no required minimum distributions, like there are for traditional IRAs. Of course, nothing worth having in life comes without a cost, and the Roth IRA is no exception. Here's how to grow your Roth IRA account without growing your bill at tax time.
