Year-of-Death RMD and RMD on Backdoor Roth: Today’s Slott Report Mailbag
Question: I have a client who died last month. She would have been age 83 this year. She had an IRA. Her husband, age 87, was the beneficiary of the IRA. She did not take her required minimum distribution (RMD) for 2025 before she died. He intends to do a spousal rollover by transferring the […]
How Trump Accounts Work
The One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, includes a new savings vehicle for children called “Trump accounts.” The rules surrounding these accounts are complicated, and many media outlets are reporting inaccurate information. Several types of contributions can be made to Trump accounts. Government Contributions A one-time $1,000 […]
3 Retirement Account Takeaways from OBBBA
On July 4, 2025, President Trump signed into law the “One Big Beautiful Bill Act” (OBBBA). This mammoth domestic policy and tax law is hundreds of pages long and will impact many people in all kinds of ways. What does it mean for your retirement account? Here are 3 takeaways: Rothification will continue. While OBBBA does […]
One Big Beautiful Bill Act and IRA Rollovers: Today’s Slott Report Mailbag
QUESTION: With the signing of the “One Big Beautiful Bill Act” (OBBBA) legislation and the current tax rates being made permanent, have your thoughts regarding Roth conversions changed? Jim ANSWER: Jim, We have always been, and will continue to be, big proponents of Roth conversions. OBBBA does not contain any changes directly related to […]
OBBBA: No IRA Changes, but More Roth Conversions?
Hopefully Ed Slott and Company is your trusted, go-to source for all things IRA and retirement plan related. Let’s be clear about the “One Big Beautiful Bill Act of 2025” (OBBBA), enacted on July 4. There is no “SECURE 3.0” in this legislation. It does NOT contain any changes DIRECTLY related to IRA or […]
How Company Plan Loans Work
Most company retirement savings plans, such as 401(k), 403(b) and 457(b) plans, are allowed to (but not required to) offer plan loans. According to a survey by the Employee Benefits Research Institute, as of the end of 2022, 52% of 401(k) plans allowed loans, while 84% of 401(k) participants were in plans offering them. […]
60-Day Rollovers and the Age 55 Exception: Today’s Slott Report Mailbag
Question: Can an IRA beneficiary do a 60-day rollover? Answer: Only a spouse beneficiary can do a 60-day rollover from an inherited IRA if the funds are moving into an IRA in her own name. If a nonspouse beneficiary takes a distribution from an inherited IRA, those funds cannot be rolled over. A nonspouse beneficiary can […]
10 Things You Should Know about Fixing Late Rollovers With Self Certification
When retirement account funds are on the move, things do not always go as planned. The best way to move these funds is to do so directly, but that may not always be possible. It is very common for money to be moved between retirement accounts by using 60-day rollovers. Unfortunately, the 60-day rollover […]
Pro Rata, Not “Double Tax”
The pro-rata rule dictates that when an IRA contains both non-deductible (after-tax) and deductible (pre-tax) funds, then each dollar withdrawn (or converted) from the IRA will contain a percentage of tax-free and taxable funds based on the ratio of after-tax funds vs. the entire balance in all your IRAs. When there is a mix […]
The Roth 5-Year Clock and the Pro-Rata Rule: Today’s Slott Report Mailbag
Question: I am over age 59½ and have had a Roth IRA account for more than 5 years. Starting in 2025, I designated all of my contributions into my employer’s 401(k) plan as Roth contributions. If I decide to retire before I have met the 5-year requirement for the Roth 401(k) and roll over […]