IRA and Retirement Plan Dollar Limits Increased for 2026
The IRS has released the cost-of-living adjustments (COLAs) for retirement accounts for 2026, and many of the dollar limits will increase next year. Retirement Plans The elective deferral limit for employees who participate in 401(k), 403(b) and 457(b) plans is increased to $24,500, up from $23,500. The catch-up contribution limit for those age 50 or […]
IRA Rollovers and Qualified Charitable Distributions: Today’s Slott Report Mailbag
Question: My wife and I have a large disparity in IRA balances. It is about a 10 to 1 ratio. I would like to transfer a significant amount to her IRA. Our brokerages say they do not allow these types of transfers. How do you manage to do that type of rollover? Scott and […]
The Right Moves – How to Move Retirement Funds
The year 2025 has been a turbulent time for the economy. Whether due to job loss or seeking better investment opportunities in volatile markets, the result is that more and more retirement account funds are on the move. When retirement funds are in motion, there are rules that must be followed. Retirement account owners […]
The Tricky Still-Working Exception – After Death
For those who have 401(k)s or other retirement plans, the required beginning date (RBD) when required minimum distributions (RMDs) are officially “turned on” is April 1 of the year after the year a person turns age 73. This is the same RBD applicable to IRAs. However, if a person is still working for the […]
The 5-Year Clock and Qualified Charitable Distributions: Today’s Slott Report Mailbag
QUESTION: A husband owned a Roth IRA which had been in existence for at least 5 years. He died in January of 2025. His wife was his primary beneficiary. The wife opened a Roth IRA in late January 2025 to receive the distribution from husband’s Roth IRA. The wife then unexpectedly died at the end […]
When Can I Take an In-Service Withdrawal from My 401(k)?
With continuing economic uncertainty, it’s not surprising that the number of employees who need to dip into their 401(k) and other company plan funds is on the rise. Congress originally set strict limits on the ability of employees to make in-service plan withdrawals. This reflected the belief that retirement plan funds should be saved for retirement. […]
5 Times When You Should Not Name Your Spouse as Beneficiary
While naming a spouse directly as the IRA beneficiary has many advantages and is a popular choice, it is not always the correct planning strategy. In some cases, another beneficiary may be better such as trust. Here are five situations where it may be better NOT to name the spouse directly as the IRA […]
Penalty-Free Withdrawals of Roth Conversions and the First RMD Year: Today’s Slott Report Mailbag
Question: Greetings, In 2025, I converted a traditional IRA to an existing Roth IRA, which I have held for 20 years. I will turn age 60 in 2026. Can I withdraw the converted money from my Roth IRA penalty free? Or do I have to wait five years? I am so confused about this. […]
IRAs and 401(k) Plans: Different Rules, Different Worlds
At their core, IRAs and 401(k) plans operate in a similar fashion. Contributed dollars avoid taxation until they are withdrawn at some point in the future. Also, Roth is available in both IRA and 401(k) form. Roth dollars grow tax-free under both the IRA and 401(k) umbrella. It is these fundamental similarities that create a […]
8 Questions Answered About the New Mandatory Roth Catch-Up Rule
Many employers with company plans, and their recordkeepers, are scrambling to be ready for the soon-to-be-effective SECURE 2.0 rule requiring high-paid employees to make plan catch-ups contributions to Roth accounts. Here are 8 Q&As about the new rule: When is the rule effective? For most plans, it’s effective January 1, 2026. (Plans with non-calendar year fiscal […]