5 Steps for Tax-Free Roth IRA Distributions
The benefit of funding a Roth IRA is the availability of tax-free distributions in the future. You pay taxes now on your contribution (or conversion) in exchange for tax-free earnings down the road. The rules can be complicated. Don’t miss out on Roth IRA benefits by making mistakes when you take a distribution. Here are […]
401(k) RMD Rollover Problems…and a Last-Minute Save!
401(k) custodians are usually pretty good about distributing required minimum distributions (RMDs) from the plans they oversee. This is especially important when a participant is rolling over his plan balance to an IRA. Why must plan custodians to be on their toes in situations like this? Because plan RMDs are not permitted to be rolled over […]
Another Way to Lose IRA Bankruptcy Protection
Normally, if you declare bankruptcy, your IRA funds (traditional and Roth) are completely off limits to bankruptcy creditors. But a recent court decision is a good reminder that this isn’t always the case. Bankruptcy protection for IRAs comes from the federal Bankruptcy Code. Under that law, up to $1,711,975 of annual IRA dollars are safe from […]
October 15 Deadlines Are Approaching
October is almost here. This means fall is in full swing. Along with pumpkin spice lattes, football season, and sweater weather come four important October 15 deadlines you will not want to miss! Avoid the Excess Contribution Penalty. Did you contribute too much to your traditional or Roth IRA for 2024? Maybe your income ended up […]
IRA Beneficiaries and Roth Conversions: Today’s Slott Report Mailbag
QUESTION: My father passed away in November 2021. I became disabled in April 2022. Am I now an eligible designated beneficiary (EDB) that can use the stretch rule for distributions? I receive disability payments, so the SSA knows my disability start date. I have read dozens of articles all with conflicting information. Thank you for any […]
“IRA Distribution Confusion”
Traditional and Roth IRA owners often get confused about the distributions they take from their IRAs. Mix-ups and misunderstandings are pervasive. With Roth IRAs, there a number of different factors to consider when withdrawing funds. How long has the account been open? How old is the Roth IRA owner? What type of dollars are in the […]
IRS Confirms Effective Date of Mandatory Roth Catch-Up Rule
In final regulations issued on September 15, 2025, the IRS confirmed that company retirement plans must comply with the SECURE 2.0 Act’s mandatory Roth catch-up rule as of January 1, 2026. That rule requires high-paid employees who wish to make catch-up contributions to have them made as Roth contributions. A high-paid employee is someone who […]
PAYMENT OF THE FIRST RMD AND THE ONCE-PER-YEAR RULE: TODAY’S SLOTT REPORT MAILBAG
Question: Hi, If my birthday is in December 2026, when I turn 73 years old, can I take my required minimum distribution (RMD) on January 2, 2026, even though I’m not yet 73 years old then? Thank you, Harvey Answer: Yes. Your first RMD is for 2026, the calendar year you turn age 73. That […]
Participation in Multiple Retirement Plans
If you are thinking about doing a qualified charitable distribution (QCD) for 2025, time is running out. The deadline is December 31, 2025. Many people miss out on this valuable tax break. Here are 5 things you need to know about 2025 QCDs: Your QCD must be done as a direct transfer from the […]
Participation in Multiple Retirement Plans
Can a person who works at two different, unrelated companies participate in the retirement plan offered by each of those businesses? Yes. Can this same person receive the maximum annual contributions into BOTH plans? Yes, under the right circumstances. Also recognize that there are limits on the type of dollars that can flow into plans. For […]