Inherited IRAs and Roth IRA Distributions. This Week’s Q&A Mailbag
This week's Slott Report Mailbag looks into inherited IRAs, RMDs, and Roth IRA distributions.
Roth IRA
One-Rollover-Per-Year Rule and Spouse Beneficiaries
Hopefully, by now everyone has heard that IRA owners can only do one IRA-to-IRA or Roth IRA-to-Roth IRA 60-day rollover in any one-year period. This interpretation of the 60-day rollover rules was part of a 2014 Tax Court decision (Bobrow v. Commissioner, T.C.Memo. 2014-21). What was unclear from this ruling and from subsequent IRS guidance was whether or not the rule applied to a surviving spouse who inherited multiple IRAs from a deceased spouse.
Seven Ways the IRS Knows…
It’s not a good question to be asking, and it’s certainly not the right question to be asking, but one fairly common question asked by both advisors and clients is “How are they going to know?” The “they,” they’re referring to, is the IRS. For those that have ever wondered, here are the answers to seven common “How are they going to know” questions.
6 Things Every Non-Spouse IRA Beneficiary Needs to Know
It is not unusual to inherit an IRA from someone who is not your spouse. Many people inherit an IRA from a parent or a sibling. If this is the case for you, here are six things you will want to know.
3 Reasons a 401(k) Deferral Beats an IRA Contribution
1) There Are No Restrictions Preventing a Tax Break
When you defer a portion of your salary into a traditional 401(k), the amount deferred will reduce your taxable income dollar-for-dollar. This is true regardless of how much income you (and your spouse, if applicable) have. In contrast, contributions to a traditional IRA are generally entitled to a tax deduction as well, but if your income is above certain limits and you (and/or your spouse, if applicable) are an active participant in an employer-sponsored retirement plan, then that deduction can be reduced or eliminated. Thus, in some scenarios, a contribution to a traditional IRA won’t help you reduce your current tax bill.
What the Trump Tax Plan Means for Your Retirement
On April 26, 2017, the Trump administration released its highly anticipated tax reform plan. The administration said the goals of the plan include growing the economy, creating jobs and simplifying the tax code. The changes proposed are significant and if passed (and that is a big “if”) could have a major impact on your retirement planning.
The Consequences of Breaking Rollover Rules
This week's Slott Report Mailbag looks into IRA rollovers, IRA transfers, and back-door Roth IRAs.
The Ultimate Rainy Day Fund; The Roth IRA
A recent Pew Charitable Trusts study released in March came to the scary conclusion that roughly one-third of Americans would have trouble coming up with $2,000 in the event of an emergency. Clearly, this is a problem. Try as one might, emergencies are bound to happen from time to time. Some of them may not have an impact on your finances, but many emergencies will. With that in mind, let’s talk for a moment about the ultimate emergency fund, the Roth IRA.
Roth IRA Recharacterizations: 11 Things You Need to Know at Tax Time
Here are the 11 things you need to know at tax time.
Strategies to Make the Most of Your Retirement Assets
“Confidence comes from being prepared.” —John Wooden. A successful retirement plan does not happen overnight nor can it exist without proper preparation.
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