By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport One of the provisions of the recently passed SECURE 2.0 that has gotten the most attentions is the one that allows some retirement account owners to delay their required...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport SECURE 2.0 includes a number of new ways a person under the age of 59 ½ can access retirement account dollars while avoiding the 10% penalty. Historically, there have been more than a dozen...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: On reading your SECURE 2.0 information, a revised RMD (required minimum distribution) to age 73 was mentioned. Prior to this new legislation, 72 was the RMD age. If this is in effect now in...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport In our December 28 and January 2 Slott Report articles, we focused mostly on the provisions of the new SECURE 2.0 law that apply to IRAs. But many of the law’s changes are directed towards workplace...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport The year 2023 has arrived. It is a new year, and we have new rules for retirement accounts thanks to SECURE 2.0 which Congress passed in the waning days of last year. SECURE...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport QUESTION: I have an inherited IRA from my father. He was born 9-27-1927 and died 7-19-2019 at age 91. I was born 12-13-1952 and my age is 70. Two on-line calculators offered by...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Each day we receive dozens of retirement-related questions from advisor members of the Ed Slott Elite IRA Advisor Group. Conversations range from incredibly complex to obscure to, “I just need...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport This holiday season Congress has given us SECURE 2.0. With no time to spare to avoid a government shutdown, they passed the $1.7 trillion Consolidated Appropriations Act of...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: Ed, I started reading your newsletter and I wondered what you thought of  IRS Notice 2022-53. It made sense to me to the point where it said that "the beneficiary of...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport As you may have read, Congress is considering passage of a $1.65 trillion spending bill that contains a number of retirement savings plan provisions. As of this morning (December 21), the bill has not...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport A repair man is currently fixing the sliding glass door on the back of my house. The track is worn and the rollers need replacing. No small task. The doors weigh a ton, you need one of those...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: Do adult children who inherited a parent’s Roth IRA in 2020 need to take an RMD each year during the 10-year payout rule or may they leave it alone and deplete the account at the end of the...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport The year 2022 is coming to a close. The holidays season is upon us. That means that the clock is ticking on year-end IRA deadlines. Be sure to get the following four...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport The IRS has announced the retirement contribution limits for 2023. Because many of these limits are tied to inflation, it shouldn’t come as a surprise that some of the limits had a big jump. Here’s a...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport QUESTION: Hello Mr. Slott, I have been doing Roth conversions this year from two small accounts (one a rollover IRA, the other a SEP-IRA) to consolidate into fewer accounts. The small SEP-IRA...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport At this time of year, financial articles typically cover festive topics with creative holiday metaphors. “Stuff Your Stocking with These Year-End Retirement Tips” or, “Stay Off Santa’s Naughty...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport If you have an IRA, you should know that the funds that are in the account can’t stay there forever. The rules say that you must begin to take required minimum distributions...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: Hi, I have read with interest, Ian Berger's article titled "IRS Waives 50% Penalty for Missed 2021 and 2022 RMDs within the 10-Year Period." I am glad that this is...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport As you’ve probably heard, the IRS has announced the IRA and workplace plan contribution limits for 2023. Because most of those limits are tied to inflation, many increased substantially. Among the big...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport It is a Thanksgiving tradition here at the Slott Report to take a moment to give thanks for the IRA rules that are helpful to retirement savers. We know there are many times...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport A solo 401(k) plan is a great retirement savings vehicle for self-employed business owners with no employees (other than their spouse). But if you’re considering a new solo 401(k), be aware that...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Question: Hello!  I need clarification regarding RMD statements for customers who hold inherited IRAs or inherited Roth IRAs. I have not been able to find a clear answer to the following...

By Andy Ives, CFP®, AIF® IRA Analyst The goal of the net unrealized appreciation (NUA) tax strategy is to enable a person to pay taxes on the appreciation of company stock formerly in a work plan at long term capital gain rates as opposed to ordinary income rates. The...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport The holidays are right around the corner, and 2022 is drawing to a close. The end of the year is always a busy time with retirement account deadlines and preparations for the...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: Good morning, I have a client who took out $100K from his SEP IRA and put the funds back in on 8/19/22 -- within 60 days from the distribution. The client has now...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport As we’ve reported, the IRS recently said it would waive the 50% penalty on RMDs missed in 2021 and 2022 for IRA beneficiaries subject to the 10-year payout rule who inherited in 2020 or 2021. These...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Not every IRA transaction is easily identifiable. Some require a little legwork to reveal or report what occurred. Some transactions are not even labeled on official IRS tax forms and can go...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport When it comes to IRAs and workplace plans, the concept of the “required  beginning date” (RBD) is a “really big deal” again. The RBD is the first date you’re required to start required minimum...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: I am 72 and want to start RMDs. I have multiple accounts from teaching jobs that I had many years ago, plus a couple of traditional IRAs and a 401(k) with my current employer. Can I total...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Roth IRAs offer a trade-off where you pay taxes now on your contribution (or conversion) in exchange for tax-free earnings later. Don’t miss out on tax-free Roth IRA...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Fall is in full swing now with football, foliage, and pumpkin spice everything. The holiday season is just around the corner. Before we know it, the year 2022 will come to an...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport QUESTION: Iturn 72 next month.  Can I take part of my RMD this year and the balance before April of next year? Howard ANSWER: Howard, Happy early birthday! Since you turn 72 this year, 2022 is...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport The Ed Slott team hosted a highly successful training program for members of Ed Slott's Elite IRA Advisor Group℠ and Ed Slott's Master Elite Advisor Group℠ last week in Las Vegas. Over 300...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: Can an IRA to Roth IRA rollover be spread out over two transactions to soften the upfront tax hit? Answer: When a conversion is done, any taxes owed would be owed in...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport SECURE Act regulations shoved the required beginning date (RBD) to the front of the stage. No longer can the RBD hide from the bright lights. What was once somewhat of a minor date in people’s...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: Hello, I inherited an IRA from my brother who passed away on January 6, 2022. His DOB was 12/31/1952. He had just turned age 69. I am 75 years old. My DOB is 6/26/1947. I understand the...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport If you are a victim of Hurricane Ian, you may be eligible for some relief when it comes to your retirement accounts. The IRS has postponed certain tax deadlines for individuals...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Last Friday (October 7, 2022), the IRS waived the 50% penalty on missed 2021 and 2022 inherited retirement account RMDs for beneficiaries subject to the SECURE Act 10-year payout period. The guidance...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Question: I must take an RMD this year, based on 12/31/2021 account values. My current account values are much less than those of 12/31/2021. This is typical, I’m sure. Is there any chance...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport We are constantly bombarded with requests to update our information. “Password needs updating.” “Software update for your mobile device.” “Please update your email so our marketing team can...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: When will the IRS release final regulations for RMDs on beneficiary IRAs? Kim Answer: Hi Kim, That is a great question. We have been fielding many inquiries about...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Maybe you made a Roth IRA contribution for 2021, but your income was too high. Maybe you made a traditional IRA contribution without having any earned income. These are both...

By Ian Berger IRA Analyst Follow Us on Twitter: @theslottreport Question: Late in December, 2021, a taxpayer (under age 59 ½) takes a distribution of his (traditional, not Roth) 401(k), and has 20% withheld for Federal tax. Early in January, 2022, the full 100% of the...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport More and more 401(k) plans now offer Roth contributions. At the same time, Americans are changing jobs and receiving 401(k) distributions in record numbers. So, it’s a good time to review the tax...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Qualified Charitable Distributions (QCDs) are a common transaction these days, but all guidelines must be followed to ensure the QCD is valid. Recent court cases have exposed the absolute...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Question: I turn 72 in 2023. If I wait to take my first RMD until 4/1/24, do I calculate it using my IRA balance on 12/31/23 or on 12/31/22? I think 12/31/22, but do not want to assume. I can't...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport According to many recent surveys, the fall months of September and October are overtaking June as the most popular time of year to tie the knot. If your wedding is approaching...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport A recent federal court case from West Virginia illustrates that the spouse of a 401(k) participant usually has no right to prevent the plan from paying the participant a lump sum distribution....

By Sarah Brenner, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: By law I must withdraw a certain percentage from my retirement accounts to meet the required RMD. And I will have to pay income taxes on that amount. The percentage amount I must withdraw...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport This may seem like a rudimentary topic, but it is the basics that are often so confusing. A fundamental understanding of Roth IRA distributions is essential for Roth IRA owners. In a blog post...

By Sarah Brenner, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: Hi Mr Slott, I read somewhere but couldn't remember where, if a person needs to withdraw an RMD but doesn't need the money, can he convert this RMD to a Roth IRA? Thanks in advance...

By Sarah Brenner, JD IRA Analyst Follow Us on Twitter: @theslottreport Questions on how age affects the decision to convert to a Roth IRA are common. What age is too old to convert? There is no easy answer to this question because there is no magic age when conversion...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Here’s a common question: An employee retires in or after the year he turns 72 and wants to roll over his 401(k) funds to an IRA. Does an RMD have to be taken before the funds are rolled over? What...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport QUESTION: I have a client where we did a 60-day rollover this past January. The proceeds were put back into the account in less than 60 days. The client has asked me to rollover the 403(b) plan...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport An advisor called to discuss Roth IRA conversions. His new client made some decisions before speaking with him, and he was trying to untangle her self-inflicted knot. She was 69 years old, a...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport August is winding down and September is just around the corner. That means that it is back to school time! Education can be expensive. This year, with inflation raging, that...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: Hi, My wife (68) inherited a traditional IRA and a Roth from her sister (71) in 2021. Both accounts have been moved to inherited IRAs. I’m trying to do some tax...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Here’s a line from one of the manuals we use in our education seminars for advisors: “Missed stretch IRA RMD by an EDB, when the IRA owner dies before the RBD.” An old baseball expression says: “You...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Lifetime required minimum distributions (RMDs) start in the year when an IRA owner turns 72. (Technically, the “required beginning date” for RMDs is April 1 of the year after a person turns...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: When converting an IRA to a Roth IRA, do the investments (stocks, bonds, ETFs, etc.) have to be sold or can they be transferred directly from the IRA into the new Roth account? Answer: There...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Are you nearing retirement age and not looking forward to taking unwanted required minimum distributions (RMDs) from your retirement account? You may be looking for a strategy...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport If a retirement account transaction becomes a taxable distribution, you probably know you will owe taxes and possibly the 10% early distribution penalty (if under age 59 ½) on the distribution. But...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Question: My husband is the sole beneficiary of a Traditional IRA owned by his cousin, who recently  passed away. From my research, I believe my husband fits the exception criteria of "eligible...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Each week the Ed Slott team answers questions from financial advisors across the country. Sometimes we see a pattern in repeating questions, sometimes the questions are relatively basic, and...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Many Americans are still working long beyond what has traditionally been retirement age. This may be a choice or a necessity. If this is your situation, you may be keeping...

By Sarah Brenner, JD Director of Retirement Education Question: Can an RMD from an inherited IRA be taken out of your own traditional IRA? Jack Answer: Hi Jack, Aggregation of required minimum distributions (RMDs) can be complicated and we get a lot of questions on...

By Andy Ives, CFP®, AIF® IRA Analyst When moving retirement money from IRA to IRA, or from a workplace retirement plan like a 401(k) to an IRA, there are essentially three methods to relocate those dollars. Two of them are similar, and the third opens all kinds of...

By Ian Berger, JD IRA Analyst Question: I have just read as many questions and answers as I could on The Slott Report and am still very confused.  Simply put, I am over 80 years old, and I have had a Roth and a traditional IRA for many years.  My daughter is the sole...

By Sarah Brenner, JD Director of Retirement Education Back in 2020 when COVID first became our new reality, Congress enacted the CARES Act. The CARES Act allowed qualified individuals who were affected by COVID to take penalty-free distributions from their retirement...

By Ian Berger, JD IRA Analyst Like most everything else these days, the price for receiving an IRS private letter ruling (PLR) has recently gone up. A person will request a PLR to receive the IRS’s blessing that a specific tax transaction won’t violate the tax code or...

By Andy Ives, CFP®, AIF® IRA Analyst Question: Is there a required minimum distribution (RMD) on a self-directed IRA? Answer: A “self-directed IRA” is nothing more than an IRA that invests in unconventional items that not all custodians will handle – like maybe crypto...

By Andy Ives, CFP®, AIF® IRA Analyst Conduit IRAs, sometimes called “rollover IRAs,” typically contained only money rolled over from a company plan - and subsequent earnings on those dollars. But a 2001 tax law (Economic Growth and Tax Relief Reconciliation Act of...

By Sarah Brenner, JD Director of Retirement Education A Qualified Charitable Distribution (QCD) is a way for you to move funds out of your IRA to a qualifying charity income-tax free. If you are thinking this might be a good strategy for you, here are 4 QCD rules that...

By Ian Berger, JD IRA Analyst Proposals to boost IRA and workplace plan savings are advancing, but they are not law yet. Several actions must occur before the proposals become law. On March 29, the House passed the “Securing a Strong Retirement Act of 2022.” Now, two...

By Sarah Brenner, JD Director of Retirement Education Question: Dear Sirs: I inherited a regular IRA upon my mother's death in 2015. I am now 75 years old and have been taking required distributions since then. She was taking distributions herself when she died. My...

By Ian Berger, JD Director of Retirement Education Should I Accept a Lump Sum Buyout Offer? With economic uncertainty increasing, more companies with defined benefit (DB) pension plans will likely attempt to improve their bottom line by offering lump sum buyouts. A...

By Ian Berger, JD IRA Analyst Question: I am 66 and would like to convert one of my IRAs to a Roth, but I am not sure if any of my old IRA accounts have any after-tax contributions. I have no records, so I assume they are all pre-tax but I am not sure. If I convert...

By Andy Ives, CFP®, AIF® IRA Analyst Over the past couple of months I have been tasked with the unfortunate responsibility of helping my mother sort through her financial affairs after the death of her spouse. My dad passed in March, and it has been a steady stream of...

By Sarah Brenner Director of Retirement Education You may have heard how converting to a Roth IRA is a great move for younger people. This is no surprise. A younger person who converts has two big factors working in her favor. She may pay taxes on a smaller IRA...

By Andy Ives, CFP®, AIF® IRA Analyst Question: Hi Ed, I’m 66 Years old. Less than a year ago I converted into my Roth from my traditional IRA with the intention of parking it there until I could finalize the details of a summer house purchase. I know I have taxes to...

By Andy Ives, CFP®, AIF® IRA Analyst The 72(t) rules (”series of substantially equal periodic payments”) allow a person to tap retirement dollars before 59½ without a 10% early distribution penalty. However, to gain this early access, you must commit to a plan of...

By Sarah Brenner Director of Retirement Education Question: Ed, My mother passed away in May 2019, and I inherited her IRA.  She had not completed her RMD for 2019, so I did that. In 2020, I began my RMDs based on the Single Life Table for Inherited IRAs. Since I...

By Sarah Brenner Director of Retirement Education If you inherit an IRA, especially if it is a larger one, you may be afraid of being stuck with the five-year distribution rule. If this rule applies, your IRA must be entirely emptied in five years, which can be a...

By Ian Berger, JD IRA Analyst Those of you who participate in 401(k) plans or certain 403(b) plans should see something new on your next quarterly statement for the period ending June 30, 2022. For the first time, the statements must include illustrations of the...

By Ian Berger, JD IRA Analyst Question: Good Day, I have a client (age 65) who inherited a traditional IRA from her mother in 2020. I know that she must empty the account by 12/31/30. She is not an eligible designated beneficiary (EDB). I’m trying to calculate the...

By Andy Ives, CFP®, AIF® IRA Analyst SCENARIO: John owns multiple Roth IRAs. He believes it is necessary to maintain all these accounts to keep things properly organized and to track his 5-year conversion clocks. He has contributed to Roth IRA #1 for over a decade. He...

By Sarah Brenner, JD Director of Retirement Education You can have too much of a good thing. While saving for retirement with an IRA is a good strategy, there are limits.  When a contribution is not permitted in an IRA, it is an excess contribution and needs to be...

By Andy Ives, CFP®, AIF® IRA Analyst Question: As we did 2 years ago, will we be able to skip taking a 2022 required minimum distribution (RMD) without penalties? Answer: Sorry, but RMDs are in full effect for 2022. The CARES Act waived RMDs in 2020, but that was a...

By Ian Berger, JD IRA Analyst Usually, rollovers involving 401(k) accounts and IRAs involve moving dollars from a plan to an IRA. But sometimes it makes sense to instead do a “reverse rollover” – from an IRA to a 401(k). Let’s get some bad news out of the way:...

By Sarah Brenner, JD Director of Retirement Education Question: I am 79 and make SEP-IRA withdrawals annually as required. I also have several regular (non-IRA) accounts. One fund I own throws off tremendous taxable capital gains every year. Is there any way I can...

By Sarah Brenner, JD Director of Retirement Education Why is it so important to know how the once-per-year rollover rule works? Well, that is because trouble with the once-per year rule is the kind of trouble no one wants! An IRA owner who violates this rule is...

By Ian Berger, JD IRA Analyst Question: Hi, I am age 50 and am targeting retirement at age 55. My current employer is selling the division I work for, and I see the potential that I could be laid off at, say, 52. If this were to happen, could I join a new employer...

By Ian Berger, JD IRA Analyst Employees leaving their jobs are often surprised to discover they aren’t entitled to the full balance of their company plan account. The reason is that some plans impose a vesting rule on certain types of contributions. What do the...

By Andy Ives, CFP®, AIF® IRA Analyst Last week in Kansas City, the Ed Slott team hosted our first in-person training program for members of our Elite Advisor Group since late 2019. While we managed to stay in contact with everyone via virtual meetings for the last two...

By Andy Ives, CFP®, AIF® IRA Analyst Question: I have a 401(k) that I'd like to use a portion for a QCD. I understand that QCD's have to be from an IRA. Can I move a portion to an IRA for the QCD? How will this affect my RMD from my 401(k)? Federal tax implications?...

By Sarah Brenner, JD Director of Retirement Education The real estate market is red hot right now. This can be especially challenging for first time home buyers. IRA savings are intended to be used for your retirement. However, if you are like many others, your IRA...

By Ian Berger, JD IRA Analyst Just when we thought we understood the new IRS regulations on required minimum distributions (RMDs), here comes more uncertainty. As we have reported, the IRS threw everyone a curveball with its interpretation of the 10-year payout rule...

By Sarah Brenner, JD Director of Retirement Education Question: I am 75 years old and contributing to my company’s 401(K) plan. I have not taken an RMD from my 401(K) utilizing the “still-working exception.” I just retired on April 30, 2022. My question is: Do I have...

By Andy Ives, CFP®, AIF® IRA Analyst Qualified charitable distributions (QCDs) continue to gain popularity, and with that popularity comes more questions. Here are a dozen QCD facts that will keep you on the straight-and-narrow with your QCD transactions: 1. QCDs are...

By Sarah Brenner, JD Director of Retirement Education Recently, Fidelity investments made headlines by announcing that it would allow retirement savers to put Bitcoin in their 401(k)s. Cryptocurrency has been all over the news, and you may be wondering if it would be...