By Ian Berger, JD
IRA Analyst

When you file for bankruptcy, one thing you usually don’t have to worry about is protecting your IRA funds from your bankruptcy creditors.

That’s because, in just about every case, all of your IRA (and Roth IRA) monies are off limits. Under the federal bankruptcy law, IRA assets up to a certain dollar limit cannot be reached by creditors. That dollar limit is indexed every three years based on the cost-of-living. On April 1, the dollar limit increased from $1,512,350 to $1,711,975, effective through March 31, 2028.

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Q: At age 71, I’m not yet subject to required minimum distributions (RMDs) from my IRA or workplace retirement accounts.  However, I am required to take annual RMDs from a pre-2020 inherited IRA and a pre-2020 inherited Roth IRA.

Am I required to take the RMDs from these inherited accounts prior to doing a Roth conversion from my own IRA?  Does that change in the year in which I turn age 73?

Answer

Q: Are rollovers done by a spouse beneficiary subject to the once-per-year IRA rollover rule? The IRA funds were never distributed to me. They were directly transferred from my deceased husband’s IRA to my own IRA. Everything was done electronically at the same firm. I’m being told that the second transfer is taxable.

Answer

Q: A 401(k) plan participant over age 73 wants to roll over his account to a new IRA. I understand that he must take a required minimum distribution (RMD) before the rollover. Is an additional RMD required in the same year from the IRA?

Answer

Q: My wife turns 73 years old in August 2025. My understanding is that she has until April 1, 2026, to take her first required minimum distribution (RMD), in which case she would wind up taking two RMDs in 2026.'

The RMD for 2025 is approximately $24,000. My question is: Can she can take a partial RMD of, say, $20,000 in 2025 and the $4,000 balance in 2026? Or, if she takes anything out of the IRA in 2025, does it have to be the full amount?

Answer

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Join America’s IRA expert Ed Slott, CPA as he discusses SECURE Act and SECURE 2.0 Act changes, new IRS regulations, advanced tax strategies, and more in this exclusive Knowledge Hub+ live event.

You’ll gain valuable retirement tax planning insights to effectively prepare your clients for a critical juncture in tax legislation, including how to maximize expiring low tax rates and new IRS regulations. Plus, get all your questions answered in real-time by IRA analysts Andy Ives, CFP®, AIF® and Ian Berger, JD!

The year is almost half gone. Are you on track to hit your goals?

If you want to finish 2025 strong, now is the time to deliver proactive, high-value planning conversations that drive client trust—and new business.

Join America’s IRA Expert, Ed Slott, CPA, and his team of Experts for this power-packed mid-year session designed to help growth-minded advisors stand out with timely guidance, next-level tax knowledge, and planning insights your clients can’t get from generic tax prep or robo-advice.

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• Use IRA tax strategies to initiate bigger-picture planning with high-net-worth clients—especially those facing RMDs or looking to reduce future tax burdens
  
• Shift the tax conversation: Roth conversions, QCDs, and knowing when to stop IRA/401(k) contributions can all help clients lock in today’s low rates
  
• Guide clients through rollover decisions after job changes or early retirements—mass layoffs aren’t slowing down
  
• Address hidden tax risks for IRA beneficiaries and legacy plans that no longer work under the SECURE Act
  
• Turn tax planning into client acquisition—how to use these strategies as door-openers for ideal clients

Whether you're looking to deepen relationships, attract better-fit clients, or reinvigorate your business for the second half of the year—this is your playbook.

Join us at our upcoming 2-Day IRA Workshop in July for up-to-the-minute education. More than four years after the SECURE Act took effect upending many longstanding retirement rules, the IRS has finally released its long-anticipated final regulations providing new clarity on these complex tax rules—plus, proposed regulations for SECURE Act 2.0! These significant changes are crucial for all advisors to understand and discuss with clients now!

• The most-up-to-date IRA expertise, including new opportunities and planning considerations stemming from the SECURE Act, the SECURE Act 2.0 and new RMD regulations released July 2024
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