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.
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.
Ed Slott, America's IRA Expert, talks about halftime in 2012 and the upcoming July 4th holiday as a backdrop for moving more of your money from FOREVER taxed to NEVER taxed while tax rates are at historic lows. Ed provides some key 2012 retirement planning strategies, including Roth IRAs and Roth 401(k)s
Happy Friday! So, let's say you are leaving or have left your employer. What happens to your retirement plan funds? There are options other than taking a taxable distribution of your retirement account balance.
Ed Slott answers a question from a consumer in Florida about whether he can move money from his Roth IRA to a company-sponsored Roth 401(k). This video describes the differences between the two accounts and answers the question about transferring funds.
This week's Slott Report Mailbag includes questions on some of our most-discussed topics, including 60-Day IRA Rollovers and the Roth IRA 5-year rules for distributions. These are delicate areas filled with penalty traps, so make sure you use the answers below as a guide and contact a competent, educated financial advisor to steer you around the landmines of taxes and penalties.
We have previously written about a "lack of financial literacy," indicating that many individuals don't know or understand the benefits of IRAs or saving for retirement. Help set up your children and grandchildren for a successful financial future!
This week's
Slott Report Mailbag includes questions (and our answers) on the income requirements for a Roth IRA contribution, SEP IRAs and governmental 457(b) plans.
As always, we stress the importance of working with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Find one in your area at this link.1.
Is a monthly retirement check considered income in order to open a Roth IRA?
Answer:An IRA contribution must be based on the taxable compensation of the individual for the year of the contribution. Pension, profit sharing or IRA distributions are not considered compensation for the purpose of a contribution to an IRA.
Can you believe that we are already in May? And in 2012 no less? In the spirit, somehow fast forwarding into the future and being in May of 2012, here are 12 things you may not do with your retirement account.1)
You may not convert or rollover a required minimum distribution (RMD). A year’s RMD must be taken prior to making any such transaction.2)
You may not claim “hardship” as an exception to the 10% early distribution penalty. No such exception exists!!3)
You may not name your estate as your IRA beneficiary if you want your beneficiaries to stretch your IRA. 4)
You may not make a Roth contribution for 2012 if your income is above certain thresholds. Click here to see those thresholds.5)
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