401(K) RMDS IN THE YEAR OF RETIREMENT
Here’s a question we get asked often: Say you retire in the year you turn age 73 (or in a later year) and you want to roll over your 401(k) funds to an IRA. Do you have to take a required minimum distribution (RMD) before rolling over the remaining funds? The answer is yes, but […]
JUST A FEW DAYS LEFT TO FIX 2023 EXCESS 401(K) DEFERRALS
If you exceeded the 2023 limit for 401(k) deferrals, time is of the essence to correct the error. If you don’t act quickly, the tax consequences can be serious. The maximum amount of pre-tax and Roth contributions you could make for 2023 was $22,500 (plus $7,500 more if you were least age 50). In applying […]
WHAT ARE THE RULES FOR 401(K) IN-SERVICE WITHDRAWALS?
Congress has determined that 401(k) and other company plan funds, with certain exceptions, should be saved for retirement. For that reason, it has imposed strict restrictions on the ability of employees to withdraw from these plans while still working. Plans must follow these rules, or they risk losing their tax-qualified status. But plans are free […]
BACK-DOOR ROTH IRAS AND ROTH 401KS: TODAY’S SLOTT REPORT MAILBAG
Question: Hi Can we contribute backdoor Roth IRA money to my husband’s Roth IRA since I have existing traditional IRA accounts, but my husband has none? Thank you very much for answering my questions. Pinan Answer: Hi Pinan, Many high-income individuals use back-door Roth IRA conversions to fund Roth IRAs when their income is too […]
MORE 401(K) SECURE 2.0 CHANGES ALREADY IN EFFECT – AND ON THE WAY
By now, you probably know that a number of SECURE 2.0 provisions pertaining to 401(k) (and other company savings plans) became effective this year. We’ve already discussed two of them in The Slott Report. The first is that Roth 401(k) accounts, like Roth IRAs, are now exempt from RMDs. The second is that plans are […]