Tax Court Rules New SECURE 2.0 Statute of Limitations on Excess Contribution Penalty Is NOT Retroactive
The Tax Court recently ruled that the new SECURE 2.0 statute of limitations (SOL) on the 6% excess IRA contribution penalty is not retroactive.
RMD
5 Common IRA Mistakes and Proper Corrective Action…If Available!
Year after year, many of the same IRA errors happen again and again. Based on the volume of times these mistakes occur, it seems appropriate to create a short list of repeat offenders…and offer some advice on how to properly move forward. In no particular order, here is a handful of common IRA mistakes, along with the proper corrective measures.
Last Week in La Jolla
Last week in La Jolla, California, the Ed Slott team hosted another incredibly successful 2-day advisor training program. Nearly 200 financial professionals from across the country chose to join us for some intense IRA and retirement plan education. Topics included all things Roth, net unrealized appreciation, naming trusts as IRA beneficiaries, new SECURE 2.0 updates, QCDs, 10% penalty exception rules, creditor/bankruptcy protection rules, and the list goes on.
THE PRO-RATA RULE AND INHERITED IRA RMDS: TODAY’S SLOTT REPORT MAILBAG
Question:I was given your information by a financial advisor who follows your articles. I have a unique situation with a client who is a high earner with several old 401(k) accounts. My idea was to have her fund an IRA with a contribution for 2023 and 2024. Then I was going to have her do the Roth conversion with no tax liability. She currently has no IRAs. My question is: If I roll over her 401(k)s later in 2024, would she still be subject to the pro-rata rule? When I contacted my back office, they said that at the time of conversion she will not have an IRA, so she should be all set. However, my thought is that the pro-rata rule applies on a calendar year basis, so she would be subject to the pro-rata IRA rule.
More 401(k) SECURE 2.0 Changes Already in Effect – And On the Way
By now, you probably know that a number of SECURE 2.0 provisions pertaining to 401(k) (and other company savings plans) became effective this year. We’ve already discussed two of them in The Slott Report. The first is that Roth 401(k) accounts, like Roth IRAs, are now exempt from RMDs.
BACKDOOR ROTH IRA CONVERSIONS AND THE ANNUAL RMD REQUIREMENT: TODAY’S SLOTT REPORT MAILBAG
Question:Is it possible to do a Backdoor Roth IRA conversion with a SEP IRA? If yes, how does it work?Thank you!Yulia
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 Non-Spouse Beneficiaries: Today’s Slott Report Mailbag
Question:Starting in 2024, if you have a 529 plan you can potentially roll it into a Roth IRA if certain requirements are met. Could the 529 plan also go into a Roth employer plan?Thank you.
529 Plans and Non-Spouse Beneficiaries: Today’s Slott Report Mailbag
Question:Starting in 2024, if you have a 529 plan you can potentially roll it into a Roth IRA if certain requirements are met. Could the 529 plan also go into a Roth employer plan?Thank you.
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?
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