Double Your Pleasure – The 457(b) 2x Catch-Up
If you’re in a 457(b) plan and are nearing retirement, you may want to consider an often-overlooked rule that could allow you to defer twice the usual annual elective deferral limit (for 2025, $23,000 x 2 = $47,000) in the three years before retirement. This almost-too-good-to-be-true opportunity is sometimes called the “2x catch-up” or […]
Moving Your Roth Account
By Sarah Brenner, JD Director of Retirement Education The year 2025 has been a turbulent time for the economy. Whether due to job loss or persons seeking better investment opportunities in volatile markets, retirement account funds are on the move more than ever. Fortunately, portability between different types of retirement accounts has expanded, creating […]
RMD Calculations and Qualified Charitable Distributions: Today’s Slott Report Mailbag
By Sarah Brenner, JD Director of Retirement Education Question: I am age 85, and my wife is age 75. If I die first and my wife inherits my IRA, are the required minimum distributions (RMDs) that my wife must take after my death calculated using her age or my age? Richard Answer: Hi Richard, […]
Bad Advice Turns Me Into the Hulk
Before he transformed into the Incredible Hulk, Bruce Banner once said to his antagonist, “Don’t make me angry. You wouldn’t like me when I’m angry.” That’s a little how I feel when I hear stories about lazy financial professionals giving bad advice. Not that I’m about to turn green and rip through my clothes, […]
Are My SEP and SIMPLE IRAs Safe from Creditors?
You are not alone if you have concerns that your IRA or workplace plan savings could be lost if you are forced to declare bankruptcy or wind up on the losing end of a civil lawsuit. After all, we all count on those savings for a financially secure retirement. Fortunately, there is usually some degree […]
IRA Transfers and Qualified Charitable Distributions: Today’s Slott Report Mailbag
QUESTION: Hello, I have two IRA annuities with different insurance companies. One of my annuities is maturing and I would like to transfer it upon maturity to a different insurance company. Do I need to take my 2025 required minimum distribution (RMD) from the current insurance company prior to transferring the funds to a new […]
When You SHOULD Name a Trust as IRA Beneficiary
Here at the Slott Report we hear many stories about trusts being named as IRA beneficiaries and the problems that follow. Often, there seems to be no purpose for naming the trust and it brings unnecessary complications. Trusts won’t help with income taxes. In fact, they can increase the tax hit because IRA funds may be […]
Fixing a Converted RMD…and the Tax Reporting
We know that required minimum distributions (RMDs) cannot be rolled over or converted. Before a person does any Roth IRA conversions, all of their IRA RMDs must be satisfied. (See this prior Slott Report post: “New Rule: All IRA RMDs Must Be Satisfied Prior to Doing a Roth Conversion.”) But what if an RMD does get erroneously […]
Roth Conversions and HSA Distributions: Today’s Slott Report Mailbag
Question: Recently, I’ve received dozens of emails suggesting that traditional IRA owners can convert to a Roth IRA and somehow avoid all or some tax. Is this a scam? Thank you in advance. Bill Answer: Hi Bill, There is no way for traditional IRA owners to avoid having funds converted to Roth IRAs count […]
Inherited Roth IRAs and IRA Transfers: Today’s Slott Report Mailbag
Question: Hello, I have a question concerning inherited Roth IRAs. I know that in the past you have said that no annual required minimum distributions (RMDs) are required for these accounts. Does this include Roth IRAs that were inherited prior to the SECURE Act changes? There is so much confusion about Roth IRA RMDs, so […]