QUESTION:I inherited a traditional IRA from my mother in 2024. She passed before her required beginning date (RBD.) I know that I fall under the 10-year rule. The question is, do I need to start required minimum distributions (RMDs) in 2024 and deplete the account by 2034, or can I wait until 2034 and deplete the entire account all at once?
Workplace retirement plans – like a 401(k) – can hold different types of dollars. Typically, a 401(k) will have a pre-tax bucket and a Roth bucket. Occasionally, a plan will have a third bucket to hold after-tax (non-Roth) money. When it comes time to roll all these plan dollars to an IRA, where should (and where can) the different dollars go?
The word “rollover” is used frequently in writing and talking about distributions from retirement plans. Many times it is used incorrectly. It is crucial that retirement account owners and their advisors know the meaning of the word rollover to safegaurd their savings.
This week's Slott Report Mailbag examines required distributions and moving IRA money to a charity.
This week's Slott Report Mailbag examines the RMD rules for business ownership after age 70 1/2 and the pitfalls of transferring an inherited IRA account to a non IRA bank account. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure.
Last week, we published a Special Report on the Back-Door Roth IRA. This week, we explore how a simple 401(k)-to-IRA rollover could dramatically change the tax impact of that transaction. Here’s how.
