Inheriting an Inherited IRA
What are the rules when you inherit an inherited IRA? We get this question frequently. Let’s consider what happens when using designated beneficiaries.
RMD
Don’t Make the Same Mistakes These Advisors Made: This Week’s Q&A
This week's Slott Report Mailbag looks into SEP-IRAs, 403(b)s and inherited IRAs.
5 Strategies to Reduce RMDs
Nothing lasts forever. This includes tax deferral on your IRAs. Eventually, Uncle Sam is going to want his share and will require funds to come out of these accounts. That is when required minimum distributions (RMDs) must begin. What if you don’t need the money? What if you don’t want a tax hit? Here are five strategies to reduce your RMDs.
Questions about Your Inherited IRA? This Week’s Mailbag Q&A
This week's Slott Report Mailbag looks into inherited IRAs, RMDs, and NUAs.
Six Things to Know About the Year-End Account Balance Used for RMDs
1. General Rule
As a general rule, the account balance used for calculating required minimum distributions (RMDs) is the prior year-end account balance, with no adjustments. For example, if you are calculating an RMD for 2017 you would use the 2016 year-end account balance. If you are calculating a missed RMD for 2014, you would use the 2013 year-end account balance. If you have your first RMD due for 2017 and you take that RMD in March of 2018, you still use the 2016 year-end account balance. As usual with retirement distribution rules, there are some exceptions to the general rule.
Quiz Yourself with These IRA Questions!
After you’ve answered the questions below, scroll down to see the answers and see how well you know your stuff!
The High Cost of IRA Mistakes
So you think you don’t need/can’t afford an advisor? Have you considered the cost of making IRA mistakes? Even seemingly simple transactions are subject to rules and restrictions under the tax code. Did you contribute too much by mistake? This mistake cannot be corrected by simply withdrawing the excess amount. There are rules on how to fix the mistake. If you are not thoroughly familiar with the IRA rules, it is all too easy to make a mistake, and mistakes can be very costly.
Calculating RMDs with Multiple Beneficiaries: This Week’s Q&A
This week's Slott Report Mailbag looks into calculating RMDs with multiple beneficiaries and inheriting IRAs.
Important Ages in Retirement Planning
Catch-up contributions for most retirement plans and IRAs can be made beginning in the year you are going to turn age 50. The only plan that does not allow catch-up contributions is the SEP IRA. The following are the catch-up limit amounts.
Inherited an IRA with Missed RMDs? This Week’s Q&A
This week's Slott Report Mailbag looks into missed RMDs, inherited IRAs, and QDROs.
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