ARE 529-TO-ROTH IRA ROLLOVERS SUBJECT TO STATE TAX?
Previous Slott Report articles have covered the new SECURE 2.0 provision allowing 529 funds to be rolled over to Roth IRAs. We’ve reported that there are several unanswered questions concerning this new rollover opportunity. And we’ve discussed the ability to do two rollovers in 2024 – one for 2023 if completed by April 15 and a second by December […]
TAX TIME TIPS FOR IRAS
IRAs are an important, but often overlooked, part of your overall tax planning. As the deadline for filing 2023 tax returns approaches, it is a good time to incorporate your IRA plan strategies with your overall tax plan. You are probably now busy gathering the necessary information to file your 2023 federal income tax returns. […]
WHAT’S THE PROCESS WHEN A TRUST (OR ESTATE) IS IRA BENEFICIARY?
The same conversation has, understandably, been repeated many times. The questions are similar: “What do we do when a trust (or estate) is IRA beneficiary? How do we set up the account? Aren’t we now stuck with the high trust tax rates?” Of course, there is not enough space here to get deep into the […]
5 COMMON IRA MISTAKES AND PROPER CORRECTIVE ACTION…IF AVAILABLE!
Year after year, many of the same IRA errors happen again and again. Based on the volume of times these mistakes occur, it seems appropriate to create a short list of repeat offenders…and offer some advice on how to properly move forward. In no particular order, here is a handful of common IRA mistakes, along […]
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 […]
MAKING A 2023 IRA CONTRIBUTION? HERE ARE 4 RULES THAT MAY SURPRISE YOU
The tax season is upon us. This is the time when many individuals fund their IRAs by contributing for the prior year. Contributing to an IRA may seem pretty straightforward, and in many ways it is! But there can be twists. Here are four rules that may surprise you when you make your 2023 IRA […]
LAST WEEK IN LA JOLLA
Last week in La Jolla, California, the Ed Slott team hosted another incredibly successful 2-day advisor training program. Nearly 200 financial professionals from across the country chose to join us for some intense IRA and retirement plan education. Topics included all things Roth, net unrealized appreciation, naming trusts as IRA beneficiaries, new SECURE 2.0 updates, […]
THE PRO-RATA RULE AND INHERITED IRA RMDS: TODAY’S SLOTT REPORT MAILBAG
Question: I was given your information by a financial advisor who follows your articles. I have a unique situation with a client who is a high earner with several old 401(k) accounts. My idea was to have her fund an IRA with a contribution for 2023 and 2024. Then I was going to have her […]
THINKING ABOUT A 2023 SEP IRA CONTRIBUTION? HERE ARE 6 RULES YOU NEED TO KNOW
Are you thinking about making a Simplified Employee Pension (SEP) IRA plan contribution for 2023? If so, here are 6 rules you need to know. Only a business can make a SEP contribution. If you are employed by someone else, you cannot make a SEP contribution using your employment earnings. Only a business or employer can […]
ROTH CONVERSIONS AND INHERITED IRAS: TODAY’S SLOTT REPORT MAILBAG
QUESTION: If an individual has both an IRA and a 401(k) and wants to convert the IRA to a Roth IRA, does he have to take both the IRA and the 401(k) RMD (required minimum distribution) before doing a Roth conversion? Thanks for your kind attention. ANSWER: For things like Roth conversions, the pro-rata rule […]