Will Market Volatility Mean RMD Waivers for 2025?
Recent turmoil in the markets has hit many retirement savers hard as they see their IRA and 401(k) balances rapidly shrinking. For many, the age-old advice to stay the course for the long term and not cash out too soon applies, but for those who are age 73 or older, the rules requiring required […]
Who Can Use a 10% Penalty Exception?
As a follow up to the March 26 Slott Report entry that included a full list of the 10% early withdrawal penalty exceptions (“10% Penalty Exceptions: IRAs and Plans”), here we get a little deeper into the weeds on some of the nuances of certain exceptions. As mentioned in the March 26 article, some exceptions apply […]
Deferral of First RMD and RMDs for Roth IRAs: Today’s Slott Report Mailbag
Question: My wife turns 73 years old in August 2025. My understanding is that she has until April 1, 2026, to take her first required minimum distribution (RMD), in which case she would wind up taking two RMDs in 2026. The RMD for 2025 is approximately $24,000. My question is: Can she can take […]
Higher IRA Federal Bankruptcy IRA Protection Limit Became Effective on April 1
When you file for bankruptcy, one thing you usually don’t have to worry about is protecting your IRA funds from your bankruptcy creditors. That’s because, in just about every case, all of your IRA (and Roth IRA) monies are off limits. Under the federal bankruptcy law, IRA assets up to a certain dollar limit […]
Make Your 2024 IRA Contribution by April 15
There is still time! You can still make a prior-year (2024) IRA or Roth IRA contribution up to the tax filing due date, April 15, 2025. For most people, there is no extension beyond that date, regardless of whether a tax return extension is filed. While April 15 is the deadline to contribute to […]
Qualified Charitable Distributions and inherited IRAs: TOday’s Slott Report Mailbag
Question: In the article “Why You Should Take Your 2025 RMD Now,” the following caught my eye … “Or, maybe you are charitably inclined and looking to satisfy your RMD by doing a qualified charitable distribution (QCD). This will require the custodian to send funds directly to charity and the charity must cash the […]
10% Penalty Exceptions: IRAs and Plans
If a person under age 59½ takes a withdrawal from his IRA or workplace plan, there is a 10% early withdrawal penalty…unless an exception applies. There are currently 20 exceptions, with a 21st on the way. Here are those exceptions, with some brief commentary. Exceptions Applicable to BOTH Plans and IRAs (Note: Check to make […]
12 Super Catch-Up Contribution Questions Answered
We continue to get lots of questions about the new “super catch-up” contribution for retirement plan and SIMPLE IRA participants who are ages 60-63. Here are answers to your top 12 questions: 1. When does the super catch-up contribution rule become effective? It became effective for the 2025 calendar year. 2. Is the super catch-up […]
Bankruptcy Protection and Inherited IRAs: Today’s Slott Report Mailbag
QUESTION: I cannot find the indexed number for IRA bankruptcy protection for 2025-2028. It is $1,512,350 currently, but it is scheduled to increase on April 1, 2025. Do you know what it will be? Mike ANSWER: The updated IRA bankruptcy protection number is $1,711,975, effective April 1, 2025. As you mentioned, this level of bankruptcy protection for […]
Surprise! You May Still Be Eligible for the Stretch IRA
The arrival of the SECURE Act means the end of the stretch IRA for many beneficiaries. Instead, a 10-year payout rule applies for most IRAs inherited by non-spouse beneficiaries. However, the SECURE Act does allow the stretch to continue for certain select groups of beneficiaries. These beneficiaries are called “eligible designated beneficiaries” (EDBs). EDBs […]