OBBBA Impact on HSAs
From a tax perspective, a Health Savings Account (HSA) can offer the best of all worlds. Like traditional IRA contributions, HSA contributions are made by the individual with pre-tax dollars. Contributions made by an employer are excluded from income, like with a 401(k) plan. And, distributions are tax- and penalty-free, similar to Roth IRA […]
QCDs and 529-to-Roth IRA Rollovers: Today’s Slott Report Mailbag
Question: I am 70 years old and do not have to start taking required minimum distributions (RMDs) for three years. Can I do a qualified charitable distribution (QCD) from my IRA now? Or, do I have to wait until age 73 when I have to start taking RMDs? Elaine Answer: Hi Elaine, You do not have to wait […]
Six Unanswered Questions on Trump Accounts
A recent Slott Report article discussed “Trump accounts,” the new savings vehicle for children created by the One Big Beautiful Bill Act (OBBBA). As with most new laws, there are a number of unanswered questions about Trump accounts that need to be addressed by the IRS. Fortunately, since Trump account contributions can’t be made before July 4, […]
Required Minimum Distributions and IRA Transfers: Today’s Slott Report Mailbag
By Sarah Brenner, JD Director of Retirement Education Laurence Tureaud, born May 21, 1952, is better known as Mr. T. He is an actor and a retired professional wrestler. He is famous for his roles as B. A. Baracus in the 1980s television series “The A-Team” and as boxer Clubber Lang in the 1982 […]
Required Minimum Distributions and IRA Transfers: Today’s Slott Report Mailbag
Question: Can I satisfy my required minimum distribution (RMD) from my 401(k) by taking it from my IRA instead? Answer: No, that is not allowed. You may aggregate RMDs from your IRAs if you have multiple accounts, but you are not permitted to aggregate your IRA and 401(k) RMDs. You will need to take […]
Reporting a Recharacterization
While the ability to recharacterize Roth conversions was eliminated years ago, Roth contributions can still be reversed. A Roth IRA contribution can be recharacterized to a traditional IRA, or vice versa. To recharacterize an IRA contribution, the IRA custodian will transfer the funds, along with the earnings or loss attributable (“net income attributable” or […]
Roth IRA vs. Roth 401(k): Which Is Better?
Many of you are familiar with the tax advantages that Roth retirement accounts can bring. Although Roth contributions are made with after-tax dollars, the contributions grow tax-free, and earnings also come out tax-free after age 59½ if a five-year holding period has been satisfied. A recent survey by the Plan Sponsor Council of America showed that […]
The One Big Beautiful Bill Act (OBBBA) and SEP IRAs: Today’s Slott Report Mailbag
QUESTION: Does the new $6,000 additional deduction for seniors under the One Big Beautiful Bill Act (OBBBA) also apply if the senior itemizes their taxes? Thanks, Robert ANSWER: Robert, The new $6,000 addition to the standard deduction is for seniors aged 65 and older for years 2025-2028. This is per person, so a married […]
Trump Accounts – A Hot New Bombshell Enters the Tax-Advantaged Account Villa
Summer of 2025 brought us the new season of the hit TV show, Love Island. When a new contestant arrives on this popular reality dating show, its viewers know that “another hot bombshell has entered the villa.” The summer of 2025 has also brought us the One Big Beautiful Bill Act (OBBA) and, with the new […]
Last Week in Chicago
Last week in Chicago, the Ed Slott and Company team hosted another successful 2-day advisor training program. A sellout crowd of over 260 financial professionals from across the country joined us for some intense IRA and retirement plan education. Topics included all things Roth, net unrealized appreciation (NUA), naming trusts as IRA beneficiaries, the […]