QUALIFIED CHARITABLE DISTRIBUTIONS (QCDS) AND SOLO 401(K) PLANS: TODAY’S SLOTT REPORT MAILBAG
Question: Can a QCD (qualified charitable distribution) be made from a 401(k) plan? Thanks! Answer: No, QCDs can only be made from IRAs and inactive SEP or SIMPLE IRAs. One possible workaround would be for you to roll over all or a portion of your 401(k) funds into an IRA and then do a QCD […]
A CHEAT SHEET FOR IRA BENEFICIARY RMDS
It’s been over four years since the SECURE Act upended the rules for beneficiary IRA required minimum distributions (RMDs), and there’s still plenty of confusion about the new rules. The IRS did give us proposed SECURE Act regulations in February 2022, but those rules still haven’t been finalized. They have also raised a lot of […]
ROLLOVERS AND SUCCESSOR BENEFICIARY RULES: TODAY’S SLOTT REPORT MAILBAG
QUESTION: My client is terminating employment and rolling over the funds from his 401(k). He was told that the funds must be rolled over to a “rollover IRA” and kept separate from any other IRA funds that he has. He already has another IRA, and he just wants to roll over the funds to that […]
ONE 60-DAY ROLLOVER PER YEAR?
SCENARIO: In one calendar year, Jessie completes the following transactions: Takes a partial distribution from her 401(k) and does a 60-day rollover to an IRA. Does a 60-day rollover from one traditional IRA to another traditional IRA. Takes another partial distribution from her 401(k) and, within 60 days, deposits the cash directly into a Roth IRA. […]
INHERITED IRAS AND QUALIFIED CHARITABLE DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG
Question: My brother died in 2020 and made me the beneficiary of an IRA he inherited from my sister who died in 2017. Can I continue to stretch the payments from this inherited IRA? If not, how soon do I have to empty it? Thanks, Dave Answer: Hi Dave, It sounds like you are a […]
ROTH IRA DISTRIBUTION RULES AND COMBINING IRAS: TODAY’S SLOTT REPORT MAILBAG
Question: Can you please clarify a question I have about whether I should take a Roth IRA withdrawal? I am much older than age 59 ½, and my first Roth IRA was opened over 20 years ago. I now own a second Roth which holds recently converted funds from my 403(b) account. I am planning to make […]
IRS WAIVES 2024 RMDS FOR IRA BENEFICIARIES SUBJECT TO THE 10-YEAR RULE
If you’re an IRA beneficiary subject to the 10-year payout period and would have had a 2024 required minimum distribution (RMD), you’re in luck. In IRS Notice 2024-35, issued yesterday (April 16), the IRS said it would excuse those RMDs. The SECURE Act provided that most non-spouse beneficiaries of IRA owners (or plan participants) who died in 2020 […]
THE 10-YEAR RULE AND INHERITED IRAS: TODAY’S SLOTT REPORT MAILBAG
Question: I have a general question regarding the 10-year time frame for emptying an inherited IRA. Your guidance says that the deadline is the END of the tenth year following death. In this specific situation, the death occurred July 9, 2020, so I believe the deadline is December 31, 2030, the end of the tenth […]
10 POINTS: FIXING EXCESS IRA CONTRIBUTIONS
‘Tis the season for identifying and correcting excess IRA contributions. It seems as if every other recent inquiry is about this subject. To keep readers on the straight and narrow, here are ten details about excess IRA contributions and the correction process… Excess contributions occur for many reasons, including exceeding the annual IRA contribution limit, […]
RMD RULES FOR IRA BENEFICIARIES: TODAY’S SLOTT REPORT MAILBAG
Question: Hi, My last remaining parent, my mother, passed away in May 2017, and my younger brother and I inherited her IRA (equally split into inherited IRA accounts). We were of the understanding we could handle required minimum distributions (RMDs) via the “stretch IRA” method (RMDs spread out over our expected lifetime). The new laws […]