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5 COMMON IRA MISTAKES AND PROPER CORRECTIVE ACTION…IF AVAILABLE! Wednesday, February 28, 2024 By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport   Year after year, many of the same IRA errors happen again and again. Based on the volume of times these mistakes occur, it seems appropriate to create a short list of repeat offenders…and offer some advice on how to properly move forward. In no particular order, here is a handful of common IRA mi

The rules for rolling over IRA distributions can be complicated. These rules can become especially challenging at the end of the calendar year. If you are taking a distribution from your IRA at end of 2023 and considering a rollover that may not be completed until 2024, here are four facts you will want to know.

The once-per-year IRA rollover rule sounds pretty easy to understand. You may only do one IRA-to-IRA (or Roth IRA-to-Roth IRA rollover) per year (365 days). However, this rule is often misunderstood. One common confusion about the once-per-year rollover rule is whether multiple distributions or multiple deposits will trip you up. Multiple Distributions on Different Days and One

Of the 92 provisions in the SECURE 2.0 legislation, signed into law last December, by far the most challenging is section 327.  Section 327 changes the distribution rules for spouse beneficiaries of IRA (and workplace plan) account holders and is effective January 1, 2024.It’s hard to know exactly what Congress was trying to accomplish with section 327. Some commentators believe it was d

Did you inherit an IRA from someone who is NOT your spouse? This is not uncommon. Maybe you inherited from a sibling or a parent or a friend. If this is your situation, proceed with caution! For non-spouse beneficiaries, a wrong move can result in disastrous consequences. So, take your time and do it right. Your first step is to contact the IRA custodian to be sure that the

Link to Pre-Post Planning Funeral Guide can be found HERE

Wednesday, September 06, 2023 By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Many IRA assets will ultimately go to nonspouse beneficiaries. When these beneficiaries inherit the funds, special rules kick in. Inherited IRAs are not like your own personal IRA account. Here are seven rules for inherited IRAs that may

Monday, August 14, 2023By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport The IRS unleashed massive confusion last year. To the surprise of many, it released proposed SECURE Act regulations requiring beneficiaries (on some occasions) to take required minimum distributions (RMDs) during the 10-year payout period. To help with the confusion, the IRS issued some transitional relief. Last year, the IRS issued Notice 2022-53, which waived penalties for misse

Q&AS ON RECENT IRS RMD RELIEF Wednesday, July 26, 2023 By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport On July 17, we reported that the IRS had issued required minimum distribution (RMD) relief in two situations. First, the Service excused 2023 RMDs for certain IRA (and plan) beneficiaries subject to the 10-year payout period. Second, it extended the  60-day rollover deadline for retirement account owners born in 1951 who erroneously received distrib

June is Pride Month. While celebrating, same-sex couples may want to take this opportunity to consider plans for their retirement accounts. Since the SECURE Act and SECURE 2.0 have overhauled the rules, it may be time for a new strategy. Here are 5 retirement account planning tips for same-sex couples.

You have likely heard of Health Savings Accounts (HSAs), and you may even understand the basics of how an HSA works. These accounts are really not too complicated. If you have a qualifying high deductible health plan, you may contribute to an HSA. Then, you can take tax-free distributions to pay for qualified medical expenses. Beyond these basics, there are many advantages that an HSA can offer that many people are not aware of...

THE INTERNET SAID SO Monday, March 13, 2023 People on TikTok create investment advice videos? And I’m supposed to trust whatever this talking head is telling me? No chance. Of course, the person on TikTok could hold a number of higher education degrees and financial certifications, but until I know for sure who they are, what they are talking about, and what their objective is, I will keep my distance.

Christine Benz from Morningstar speaks with Ed Slott on the legislation’s provisions for matching and catch-up contributions as well as for workers who currently lack a company retirement plan.

Everybody knows they should have a will, and not having one can leave heirs with a big mess. But just having a will isn’t enough. Big mistakes are common—from leaving decisions to the last minute and failing to update documents to mismatching beneficiary designations.

A ton of questions on this topic have come across our desks, and we have seen swirling, hypnotizing spirals in the eyes of many an advisor. I can only imagine what the general public is thinking about the changes to the required minimum distribution (RMD) age. Since 1986, the RMD age was planted at 70 ½. In the past three years it has increased to 72, to 73, and will eventually jump to 75. No wonder there is confusion. When the heck am I supposed to start taking my RMD?!?

Monday, January 16, 2023By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport We’re getting a lot of questions about the SECURE 2.0 provision allowing tax-free rollovers from 529 plans to Roth IRAs. Although this new rollover opportunity sounds exciting, there are a number of restrictions that may limit its appeal.Section 529 plans offer a great opportunity to pay for college, K-12 tuition and student loan repayments. Nearly every state offers at least one plan. The mos

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 2.0 is a giant piece of legislation, clocking in at over 300 pages, and some of its provisions will not be effective for years to come. Here are some top takeaways...

Monday, October 31, 2022By 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 distributions (RMDs). For traditional IRAs, the RBD is April 1 of the year following the year you turn age 72. (But if you were born before July 1, 1949, your RBD was April 1

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 sometimes they are real stumpers. We never know what the next phone call or email will bring. Recently, we’ve fielded a rash of inherited IRA inquiries. Here are a few:

SHOULD I ACCEPT A LUMP SUM BUYOUT OFFER? Wednesday, July 06, 2022 By Ian Berger, JD Director of Retirement Education Follow Us on Twitter: @theslottreport 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 lump sum buyout is a limited opportunity for DB plan participants to elect a one-time cash payment in exchange for giving

TOO OLD TO CONVERT? THINK AGAIN Monday, June 27, 2022 By Sarah Brenner Director of Retirement Education Follow Us on Twitter: @theslottreport 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 balance, and she has many years to accrue tax-free earnings in her Roth IRA. But what about older people? It is a mistake to write off con

WHEN THE FIVE-YEAR RULE APPLIES Wednesday, June 15, 2022 By Sarah Brenner Director of Retirement Education Follow Us on Twitter: @theslottreport 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 serious tax hit. Under the tax rules, if you are named as the beneficiary on the IRA beneficiary designation form, you wil

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 fixed. Here are 5 ways an excess IRA contribution can happen to you:

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 with a 401(k) plan, roll my old 401(k) over to the new plan, and then take a distribution (both the rolled-over funds and the new 401(k) funds) under the rule of 55? The statute suggests that I could do this, but

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 looking at some serious tax consequences.