Weekly Market Commentary

We have written about the net unrealized appreciation (NUA) tax strategy many times. Generally, after a lump sum distribution from the plan, the NUA tactic enables an eligible person to pay long term capital gains (LTCG) tax on the growth of company stock that...

By Andy Ives, CFP®, AIF® IRA Analyst   QUESTION: Good afternoon, If a client passed this year with four adult children inheriting equally, and each beneficiary is using the 10-year rule, how do they determine yearly required minimum distribution (RMD)...

By Ian Berger, JD IRA Analyst Victims of Hurricane Helene have at least a glimmer of good news when it comes to their tax filings and ability to withdraw from their retirement accounts for disaster-related expenses. The IRS usually postpones certain tax deadlines for...

Sarah Brenner, JD Director of Retirement Education The recent final required minimum distribution (RMD) regulations include a new rule change that may be beneficial for IRA owners who name trusts as beneficiaries. In the new regulations, the IRS allows separate...

By Andy Ives, CFP®, AIF® IRA Analyst   When a traditional IRA owner wants to convert all or a portion of his account to a Roth IRA, he needs to think long and hard about the transaction. For example, some questions to consider: 1. When will this money be needed?...

By Ian Berger, JD IRA Analyst   A big change made by the SECURE 2.0 Act of 2022 was adding a new statute of limitations (SOL) for the IRS to assess penalties for missed required minimum distributions (RMDs) and excess IRA contributions. On its face, it looks like...

Sarah Brenner, JD Director of Retirement Education Question: When an IRA owner dies after their required beginning date, can an eligible designated beneficiary choose either the life expectancy option or the 10-year payout rule? Answer: If an IRA owner dies on or...

By Sarah Brenner, JD Director of Retirement Education   It happens. You have made a 2023 contribution to the wrong type of IRA. All is not lost. That contribution can be recharacterized. While recharacterization of Roth IRA conversions was eliminated by the Tax...

By Andy Ives, CFP®, AIF® IRA Analyst   When presenting a particular section of our training manual, I usually make the joke that, “if we were playing an acronym drinking game, we would all be on our way to a hangover.” The segment is titled: “Missed stretch IRA...

By Ian Berger, JD IRA Analyst   Question: I inherited an IRA from a younger deceased spouse who wasn’t required to take required minimum distributions (RMDs) until this year. Can I take advantage of the new section 327 rules under SECURE 2.0 since the RMDs...

By Ian Berger, JD IRA Analyst If you were born in 1959, what is the first year that you must start taking required minimum distributions (RMDs)? That would seem like an easy question to answer, but because of a snafu by Congress, it isn’t quite so clear. For many...

By Sarah Brenner, JD Director of Retirement Education If you take a distribution from your traditional IRA, in most cases you will owe taxes. The government wants to be sure those taxes are paid, so IRA distributions are subject to federal income tax withholding. The...

By Andy Ives, CFP®, AIF® IRA Analyst QUESTION: I inherited a traditional IRA from my mother in 2024. She passed before her required beginning date (RBD.) I know that I fall under the 10-year rule. The question is, do I need to start required minimum distributions...

By Andy Ives, CFP®, AIF® IRA Analyst Workplace retirement plans – like a 401(k) – can hold different types of dollars. Typically, a 401(k) will have a pre-tax bucket and a Roth bucket. Occasionally, a plan will have a third bucket to hold after-tax (non-Roth) money....

By Ian Berger, JD IRA Analyst If you are making student loan repayments, you should ask your employer if it will match those payments in the company’s retirement plan. The SECURE 2.0 Act allows for matching contributions on “qualified student loan payments” (or...

Sarah Brenner, JD Director of Retirement Education Question: Can I roll over a Roth 401(k) to an existing Roth IRA or does it need to be in its own separate account? When does the 5-year holding period begin for the Roth 401K rollover? Thank you, Elisabeth Answer: Hi...

Sarah Brenner, JD Director of Retirement Education The new required minimum distribution (RMD) rules recently issued by the IRS include some good news for trusts named as retirement account beneficiaries. A documentation requirement (that tripped up many trustees...

By Ian Berger, JD IRA Analyst Question: Under IRS rules, if I am currently receiving required minimum distributions (RMDs) and die today, my non-spouse beneficiary has 10 years to pay out my IRA. If that beneficiary dies five years later (in August 2029), does the...

By Andy Ives, CFP®, AIF® IRA Analyst In my August 19 Slott Report (“Year of Death RMD – Deadline Extended!”), I wrote about the required beginning date, who takes the year-of-death required minimum distribution (RMD), and the deadline for taking that distribution....

Ian Berger, JD IRA Analyst   If you have multiple traditional IRAs and want to do a 60-day rollover (or Roth conversion) in a year when a required minimum distribution (RMD) is due, the IRS has a surprise for you. RMDs from multiple traditional IRAs (and SEP or...

By Andy Ives, CFP®, AIF® IRA Analyst   QUESTION: I have been getting emails from a few sites pitching their subscriptions. They claim that Roth IRAs will all be taxable in the future. They say there are things you can do to avoid these taxes, but to find out what...

Sarah Brenner, JD Director of Retirement Education In 2020, the SECURE Act completely changed the game for nonspouse IRA beneficiaries. Now, most are subject to the 10-year payout rule. Recently released final RMD rules keep the controversial proposed rule that...

By Andy Ives, CFP®, AIF® IRA Analyst When a person reaches the required beginning date (RBD) – generally April 1 of the year after the year the person turns age 73 – required minimum distributions (RMDs) must officially start on traditional IRAs. But what if an IRA...

By Sarah Brenner, JD Director of Retirement Education Question: Hello, I’m in my sixties, in the golden years for Roth conversions, which I’ve been doing. I’ve had a small Roth IRA account for more than 5 years. Last year I converted $90,000. This year will be about...

By Ian Berger, JD IRA Analyst If you have both pre-tax and Roth accounts in a 401(k) (or a 403(b) or governmental 457(b)) and are subject to required minimum distributions (RMDs), be aware of new rule changes made in the 2022 SECURE 2.0 law. The rules were clarified...

By Sarah Brenner, JD Director of Retirement Education Of all the many provisions in the SECURE 2.0 Act, none has been more perplexing than Section 327, which changed the rules for spouse beneficiaries. It has been hard to figure out what Congress intended in drafting...

By Ian Berger, JD IRA Analyst Question: Thank you for all of the wonderful information. I have a question as to how the July 18, 2024 final regulations impact inherited Roth IRAs. My daughters inherited Roths from their grandmother 3 years ago. She was age 101. They...

By Sarah Brenner, JD Director of Retirement Education Question: I have a question about the Roth IRA distribution ordering rules based on a client’s situation: 1. The client is 45 years old. 2. She has had a Roth IRA open for five plus years. 3. She made a $6,000...

By Andy Ives, CFP®, AIF® IRA Analyst You know the game “beer pong?” Arrange 6 or 10 cups in a triangle, fill each one with a couple of ounces whatever beverage you are enjoying, and your opponent tries to toss a ping-pong ball into one of the cups. If a throw is...

By Ian Berger, JDIRA Analyst A recent survey found that over 80% of 401(k) plans now offer employees the option of making Roth 401(k) employee contributions. More and more employees are now taking advantage of that opportunity. (In this article, I use the term “Roth...

QUESTION: I attended the Mid-Year IRA Planning Opportunities 2024 Webinar on May 14th. I missed the reasons for not naming a trust as a beneficiary in an IRA. I know you can name a trust, but what would be the downside? Thank you, Victoria ANSWER: Victoria, There are...

By Ian Berger, JDIRA Analyst Question: Does a SIMPLE IRA owner who is over age 73 and still works for the same company that sponsors the SIMPLE IRA plan have to take an RMD (required minimum distribution)? He does not own any of the company. Answer: Yes. SIMPLE and...

By Sarah Brenner, JDDirector of Retirement Education You have been contributing to your IRA for years. The market is up, and you are watching those investments grow. Maybe you have rolled over funds to your IRA from your company plan. You may now have a significant...

By Andy Ives, CFP®, AIF® IRA Analyst   It is perfectly acceptable for a person to participate in multiple work plans in the same year (even at the same time). For example, a 401(k) and a SEP. Or maybe a 401(k) and another 401(k). However, care must be taken to...

QUESTION: At age 80, after I take my required minimum distribution (RMD), can I then do a rollover from my IRA to my Roth IRA? If I can, is there a limit as to how much? I know that it is all taxable. Thanks, John ANSWER: John, Once your RMD has been satisfied, yes,...

After more than two years, we might actually soon be getting answers from the IRS on several important unanswered questions concerning required minimum distributions (RMDs) for those who inherit IRAs or company plan accounts. The 2019 SECURE Act completely changed the...

We are surrounded with information – and misinformation. Finding accurate up-to-date facts is increasingly difficult. Do an internet search and you will likely run into obsolete websites that have not been updated in years, paywalls demanding you subscribe before...

Question: When can we expect final SECURE Act regulations from the IRS? Mike Answer: Hi Mike, No one knows for sure. However, there is now some hope that these may be coming sooner rather than later. In recently released Notice 2024-35, the IRS said that final...

As retirement account questions go, this is the shortest inquiry with the longest answer. When asked what factors to consider and what 5-year clocks apply with a Roth 401(k) to Roth IRA rollover, I take a big breath and say, “Pull up a chair.” There are a number of...

A recent government report highlights how confused 401(k) participants are when they have to decide what to do with their savings after leaving employment. Tax rules require401(k) plans (and 403(b) and governmental 457(b) plans) to provide a written notice when...

Question: Can an individual who is using the age 55 exception to the 10% early distribution penalty roll over a part of a 403(b) account to an IRA and leave a portion in the 403(b) to take penalty-free withdrawals? Thank you, Jamie Answer: Hi Jamie, There is no rule...

If you have an IRA and you are approaching retirement age, you have probably heard the term “required minimum distribution” (RMD). But do you know the details of how the rules work and what they mean for you? Here are five facts about RMDs that every IRA owner should...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport   We have written about this subject in the past (December 2023), but as is our philosophy here, learning is all about repetition, repetition, repetition. Surprisingly (he says with tongue...

By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport In a famous “Seinfeld” episode, George Costanza, unemployed, living with his parents and without a girlfriend, decides to do the opposite of what he would normally do. It pays off for him big time as he...

By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport   Question: I need guidance on a new client with the following information: Is age 55; Has a $700,000 ESOP in a company that he separated from over 10 years ago; and Wants...

By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport What do you get when community property mixes with your IRA? Well, you will discover that the results can be confusing. Here are some facts every IRA owner should know. Community...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport   Ed Slott’s Elite IRA Advisor Group℠ gathered in Indianapolis last week for another successful conference. Over 350 member advisors from across the country spent two intense days of training,...

By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport   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...

By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport   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...

By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport   If you are at retirement age, you might be at a high risk for excess contributions due to rollover mistakes. This is because of the rule that says that the required minimum...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport   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...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport   SCENARIO: In one calendar year, Jessie completes the following transactions: 1. Takes a partial distribution from her 401(k) and does a 60-day rollover to an IRA. 2. Does a 60-day rollover...

By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport   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...