Retirement planning is all about proper decision-making. In this week's Slott Report Mailbag, we answer your questions about important decisions, including who to name as a beneficiary, how to handle Roth IRA distributions and if a certain key tax break applies to a certain situation. Click to read a Q&A with our IRA Technical Consultant.
Over the past several years, as the U.S. economy has been struggling, more employees have turned to their company 401(k) plans for a quick source of cash by taking loans from their plan balance. Many 401(k)s offer a loan feature, in fact some plans make it so easy for employees to get a loan that they offer a 401(k) loan debit card!
In a recent case, a non-spouse beneficiary learned that an inherited IRA is taxable and is not treated as a tax-free “inheritance.” He received a total distribution from his deceased Mom’s IRA and thought that the IRA was an inheritance and not taxable. Accordingly, he never even filed a tax return to show the withdrawal. He was wrong on both points and had to pay the back taxes plus IRS penalties for not filing his return.
This week's Slott Report Mailbag really strikes at the importance of proactive planning. One concerned consumer is worried his mother won't receive any of her deceased husband's IRA and others are inquiring on taxes, penalties and transfers. Retirement planning, IRAs and the nuances that come with them are so important to all families. We hope you are enjoying the summer and learn something from the questions, answers and situations below.
Two Slott Report Mailbags in one week?! Yes, we are here a day earlier than normal to answer a few consumer questions (they are piling up) on IRA rollovers, IRA beneficiaries and naming minors as IRA beneficiaries.
Are you inheriting an IRA? Here is a quick checklist for you. This list is designed for individuals who inherit as named beneficiaries. Some items will be different for a spouse beneficiary or if an estate or a trust inherits an IRA.
Even though the 2011 tax season for most of us ended on April 17, 2012, some of us who made a timely IRA contribution for 2011 might have changed our mind on that IRA contribution. Specifically, some individuals who contributed to one type of IRA for last year may now want to change that contribution into a different type of IRA contribution.
This week's Slott Report Mailbag includes questions on the 10% penalty, using a portion of transferred funds to pay the tax on a Roth conversion and a controversial topic (see question #3 for that). Click to read a Q&A with our IRA Technical Consultant.
We've all heard that half the marriages in the United States end in divorce. An accurate rate of divorce is difficult to get because those statistics are gathered by different groups and are not comprehensive. Regardless, divorce is certainly common. Individuals who have retirement plans almost always will name a beneficiary to receive the funds upon death.
The Slott Report Mailbag was full of questions that will keep us busy through the summer! This week we answered a pressing question on taxes relating to President Obama's Health Care Law, Net Unrealized Appreciation (NUA) strategies, inherited IRAs and required minimum distributions.
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