By Sarah Brenner, JD IRA Analyst Question: According to the IRS website: Beginning in 2015, you can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own (Announcement  2014-15 and Announcement...

By Andy Ives, CFP®, AIF® IRA Analyst As we gradually peel back the layers of this legislative onion called the SECURE Act, more and more discoveries come to light. One revelation is how qualified charitable distributions (QCDs) are potentially affected. Could a QCD...

By Ian Berger, JD IRA Analyst The new SECURE Act contains three provisions that are designed to promote annuities in company savings plans. The January 8, 2020 Slott Report described the first of these three changes – new protection for companies if the insurance...

By Andy Ives, CFP®, AIF® IRA Analyst Question: Hoping you might be able to offer some guidance. We have a client who has two IRA accounts.  The client is 80 years of age. He wants to convert the full amount in one of his IRA accounts to a Roth. The IRS says that...

By Sarah Brenner, JD IRA Analyst On December 20, 2019 the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. This new law includes some big changes for your retirement account. Here are the top 10 things you need to know: No more...

By Andy Ives, CFP®, AIF® IRA Analyst The stretch IRA is on a stretcher and paramedics just loaded it into an ambulance. It is on life support. Prognosis: negative. For most new beneficiaries, the stretch will not survive. The SECURE Act is the perpetrator, and it...

By Ian Berger, JD IRA Analyst Question: I turn 70 1/2 in 2020. Since I do not have to take a required minimum distribution (RMD), how much can I do in a qualified charitable distribution (QCD) this year? Ronnie Answer: Hi Ronnie, Even though you won’t have an RMD for...

By Ian Berger, JD IRA Analyst There are three new provisions in the recently enacted SECURE Act designed to promote annuities in company savings plans. That explains why insurance companies lobbied so hard for passage of the legislation. The three provisions are: New...

Sarah Brenner, JD IRA Analyst The SECURE Act is here! Most of new law’s provisions kicked in on January 1, 2020, overhauling many of the rules for retirement accounts that have been with us for decades. One significant change the SECURE Act brings us is the delay in...

Sarah Brenner IRA Analyst Question: With the SECURE Act, can a person who is older than 70 ½ fund a 2019 Traditional IRA?  The SECURE Act goes live on 1/1/2020, and an IRA can be funded up to 4/15/2020 for the previous year.  Any reason they cannot? Answer:...

Ian Berger, JD IRA Analyst The clock is winding down to the ball-dropping in Times Square that will usher in a new year – and a new decade. The Ed Slott and Company team wishes to thank you for supporting The Slott Report and responding to our articles with such...

By Andy Ives, CFP®, AIF® IRA Analyst Question: Hi Ed, Hope all is well.  I have a client that received the HEART benefit as her spouse passed away a few years ago.  We immediately moved those dollars into a Roth for her.  My question is, as we are doing some year-end...

By Andy Ives, CFP®, AIF® IRA Analyst As of the writing of this Slott Report submission, it is Monday, December 23, 2019. T-minus 8 days before the end of the year, which means IRA owners have a tight window to complete any year-end transactions. Once the calendar...

By Ian Berger, JD IRA Analyst Question: My husband has taken two different qualified distributions from his Roth IRA within the last 60 days.  We would like to "pay those back.” It looks like we can put money back into the Roth IRA as a rollover. My question is:  Can...

By Sarah Brenner, JD IRA Analyst With the clock ticking down on 2019, Congress is expected to enact a $1.4 trillion year-end spending bill to keep the government running. Tucked away inside this mammoth piece of legislation is the Setting Every Community Up for...

By Ian Berger, JD IRA Analyst 1. What is a QDRO? A QDRO is a “qualified domestic relations order.” In plain English, it is a state court order obtained by divorcing parties that requires an ERISA plan to pay a portion of a participant’s benefit to the non-participant...

By Sarah Brenner, JD IRA Analyst Question: As year-end approaches, I have just exceeded my 2019 RMD, combining total QCD's during the year and my regular monthly IRA withdrawals. If I make additional charitable contributions from my IRA this month, are they still...

By Andy Ives, CFP®, AIF® IRA Analyst When the chips are down, the providers hold all the cards. This is true for both IRAs and workplace plans. Ultimately, the IRA custodian (through its custodial form) and retirement plan sponsor (through the plan document) will...

December 10th, 2019 Chadd Mason, CEO The Cabana Group Yet Again, the Market Focuses on What Matters - Interest Rates and Earnings After a rocky start to last week, U.S. equity markets rebounded and finished higher, led by Friday's 1% bounce in the S&P 500. The...

By Ian Berger, JD IRA Analyst Just like eating too much pumpkin pie with whipped cream isn’t good for your waistline, being a “top-heavy” retirement plan also may not be healthy. Sponsors of certain retirement savings plans must have their plan tested each year to...

By Andy Ives, CFP®, AIF® IRA Analyst The Macy’s Thanksgiving Day Parade is a river of sights and colors and sound. A snappy marching band flows to an army of volunteers clutching the ropes of a six-story inflatable SpongeBob, swaying in the wind. Flag bearers and...

By Andy Ives, CFP®, AIF® IRA Analyst Jenny earns a salary of $1,000,000. She is single and is not an active participant in a company retirement plan. Jenny can contribute $6,000 to a traditional IRA and deduct the full amount on her taxes. Benny, also unmarried, has a...

By Sarah Brenner, JD IRA Analyst Roth IRAs first arrived over twenty years ago. A lot has changed since 1998. That was the year that Google was founded and an electronic pet called a Furby was one of the most popular Christmas gifts. However, some things haven’t...

By Ian Berger, JD IRA Analyst Question: I am over 71 and have 2 IRAs, one in my name, the other is inherited. Can I take one RMD from the inherited IRA to satisfy both? Or must I treat them separately and do 2 separate RMDs? Thank you! Tyler Answer: Hi Tyler, You must...

By Sarah Brenner, JD IRA Analyst If you are charitably inclined and have an IRA, you might want to consider doing a Qualified Charitable Distribution (QCD) for 2019. The deadline for a 2019 QCD is fast approaching. It is December 31, 2019 and many custodians have even...

By Andy Ives, CFP®, AIF® IRA Analyst Earlier this month, a tax notification service released information declaring that “North Carolina Governor Roy Cooper signed legislation allowing an income exclusion for distributions from individual retirement accounts (IRAs) to...

By Sarah Brenner, JD IRA Analyst Question: Hello Ed, I have received differing views on making a 401(k) conversion to a Roth IRA.  I'm a 64 year old retired federal employee and plan to transfer all my funds from the TSP to my traditional IRA.  From there I plan to...

By Ian Berger, JD IRA Analyst Many 401(k) plans must pass two annual nondiscrimination tests: the ADP test and the ACP test. The November 11 Slott Report discusses the ADP test. This Slott Report tackles the ACP test and the options available to 401(k) plans that fail...

By Ian Berger, JD IRA Analyst If you participate in a 401(k) plan, you probably know about the annual limit on the amount of your deferrals (for 2019, $19,000, or $25,000 if over age 50). But if you are a high-paid employee, another limit may apply. Welcome to the IRS...

By Andy Ives, CFP®, AIF® IRA Analyst Question: Hi Ed, My question: Is there any way to do a charitable distribution from my IRA before I reach RMD age? I am recently retired and 65 years old. Thanks! Marty Answer: Marty - The number-one requirement to be able to do a...

By Andy Ives, CFP®, AIF® IRA Analyst Hypersensitivity to caffeine - this is my affliction. So much so that I limit myself to one energy drink per week. It must be opened before noon and should be nursed for a minimum of 90 minutes. Any violation could result in me...

By Sarah Brenner, JD IRA Analyst IRAs are for saving for retirement. However, as these accounts have grown over the years, many IRA owners still have significant funds in their IRA at their death. This means that estate planning for IRAs is essential. Effective estate...

By Ian Berger, JD IRA Analyst Question: I am 72 years old and converting my traditional IRA to a Roth IRA a little at a time each year. Do I need to concern myself with a 5-year rule for earnings if I were to withdraw ALL my Roth IRA at once? If I do have to address...

By Ian Berger, JD IRA Analyst If you’re thinking about leaving your job, you may want to inquire about your company retirement plan’s vesting schedule. If you are close to becoming vested in a retirement benefit, it may pay to stick it out until you have enough...

By Andy Ives, CFP®, AIF® IRA Analyst Buckle your seatbelt and hang on to your hat. This ride could get bumpy. We are about to embark on a conversation that might give some readers vertigo or whiplash or all of the above. An article I wrote about the two 5-year clocks...

By Sarah Brenner, JD IRA Analyst Question: I have a question about an IRA split between my husband and me. I got half of his retirement IRA and I was wondering if I am responsible for the taxes if I was to withdraw the funds. Also, if I didn't want all the funds in...

By Sarah Brenner, JD IRA Analyst Many individuals find themselves stepping away from a job for reasons such as raising children or being a caregiver to aging parents. When this happens retirement savings can take a hit. That does not necessarily need to be case. You...

By Ian Berger, JD IRA Analyst Contrary to urban legend, ERISA does not stand for “Every Ridiculous Idea Since Adam.” Instead, it is an acronym for the Employee Retirement Income Security Act of 1974. ERISA is a federal law that regulates employer-sponsored retirement...

By Andy Ives, CFP®, AIF® IRA Analyst Question: Hello, I was wondering, will incorrect information on a Beneficiary Designation form cause it to be invalid?  I see forms with a wrong or missing date of birth, or ones listing more than one beneficiary, each assigned...

By Andy Ives, CFP®, AIF® IRA Analyst My wife teaches elementary school kids. Been at it for years. Long enough to have former students visit her classroom as adults. She was put on this Earth to teach. Tough job, though. Even at this early age, and oftentimes through...

By Sarah Brenner, JD IRA Analyst There are always questions that come up as to the correct way to handle the required minimum distribution (RMD) for the year of death of the IRA owner. Here are three things you need to know about the year of death RMD. 1. The RMD for...

By Ian Berger, JD IRA Analyst Question: I turn 70 ½ this year and my last day of work was September 30, 2019.  Am I required to take an RMD from my work profit sharing 401(k) plan by April of 2020 and, if so, is the RMD calculated on the 12/31/18 account balance?  My...

By Andy Ives, CFP®, AIF® IRA Analyst Retroactive adjective ret·​ro·​ac·​tive | extending in scope or effect to a prior time or to conditions that existed or originated in the past; especially: made effective as of a date prior to enactment, promulgation, or...

By Sarah Brenner, JD IRA Analyst Question: I attended the two-day event in Washington DC. Is there any news on the attempts in Congress to change the stretch-out? Jim Answer: Hi Jim, It sounds like you are asking about the status of the Setting Every Community Up For...

By Sarah Brenner, JD IRA Analyst October is upon us. This means fall is in full swing. Along with football, pumpkin-spice everything and stocking up on candy for trick-or-treat come four important October 15 deadlines you will not want to miss! 1. Did you contribute...

By Ian Berger, JD IRA Analyst Knowing your limits is important when you’re sitting in a bar and realize that you have to drive home. It’s also important to know the dollar limits that apply when you participate in more than one company retirement savings plan or you...

By Andy Ives, CFP®, AIF® IRA Analyst Question: I am still working at age 71 and don't really need the required minimum distributions (RMDs) from my rollover IRA. The IRA was funded largely with distributions from a tax-qualified pension plan and a tax-qualified 401(k)...

By Andy Ives, CFP®, AIF® IRA Analyst My son is 14. I make every effort to expose him to a wide array of cultural elements. A variety of music. Plays. History. Food. Movies from the 80’s and 90’s are a significant slice of the “Understanding Social References” pie...

By Sarah Brenner, JD IRA Analyst Retirement accounts are supposed to be for saving for retirement. If you tap your retirement savings before reaching age 59 ½, you run the risk of being hit with the 10% early distribution penalty. However, there are exceptions to this...

By Ian Berger, JD IRA Analyst Question: Here is the situation. The mother is deceased and the father is in jail. He has two minor kids that need the money out of his traditional IRA. Could all of the money be taken out and considered a hardship distribution to avoid...

By Ian Berger, JD IRA Analyst Like cassette tapes and slide rules, defined benefit (DB) plans are becoming relics of the past. It’s estimated that 88% of private sector employees with a company plan in 1975 were covered by a DB plan. Today, that number is less than...

By Andy Ives, CFP®, AIF® IRA Analyst People stumble over themselves all the time. Bad advice is provided, misinformation gets freely disseminated, and sometimes normally smart individuals do less-than-smart things. Stories of good folks fouling up their required...

By Sarah Brenner, JD IRA Analyst Question: Hello, I’ve been a follower of Ed’s expertise for over 10 years. The information has always been helpful and clearly explained. At this time, I’m looking to help a client minimize her taxes. She recently inherited an IRA from...

By Sarah Brenner, JD IRA Analyst Are you questioning that IRA contribution you made for 2018? Maybe you made a Roth IRA contribution and then discovered your income was too high. Maybe you made a traditional IRA contribution but you were ineligible due to your age....

By Ian Berger, JD IRA Analyst If you run a small company, you may be reluctant to offer a retirement plan to your employees because of the cost of plan administration and compliance. If so, you’re not alone: approximately 38 million American workers lack access to a...

By Andy Ives, CFP®, AIF® IRA Analyst Question: Could you please direct me to information that tells me how any conversions I make from my regular IRA to a Roth will be taxed.  My belief was that the amount of any conversion will be taxed at whatever my tax bracket is...

By Andy Ives, CFP®, AIF® IRA Analyst As I write, Hurricane Dorian is pummeling the Bahamas, churning the ocean and producing catastrophic damage. Godspeed, Freeport. Forecasts suggest the storm will sweep north and brush the east coast of Florida, which is where I...

By Sarah Brenner, JD IRA Analyst The calendar is turning to September and Starbucks is once again selling pumpkin spice lattes. It’s back to school time! We can all agree that education is expensive. If you have children, you know that you cannot afford to miss out on...

By Ian Berger, JD IRA Analyst Question: Hello, I have an IRA from my deceased father. The beneficiary is my mother, but she passed on before my father. The IRA custodian is saying this doesn't go through the estate but directly to me. I thought all IRA's that don't...

By Ian Berger, JD IRA Analyst Who says getting old is all bad? Once you reach a certain age, Congress rewards your longevity by letting you contribute an extra amount to your IRA or workplace savings plan – with no strings attached. It’s a great way to boost your nest...

By Andy Ives, CFP®, AIF® IRA Analyst Every year thousands of traditional IRA account owners turn 70 ½ years old. In addition, each year thousands of younger non-spouse beneficiaries inherit traditional and Roth IRA accounts. What do these two groups of people have in...

By Sarah Brenner, JD IRA Analyst Question: We found a discussion on your website’s discussion board in 2011 regarding 60-day rollovers straddling two calendar years. We are trying to confirm that a rollover would still be valid even if the Form 1099-R and 5498 may be...

By Sarah Brenner, JD IRA Analyst IRAs have now been around for decades. This means these accounts are now being inherited by beneficiaries and even, increasingly, by successor beneficiaries. Here are 3 things you must know if you are a successor beneficiary who...

By Ian Berger, JD IRA Analyst You may know that you participate in a DC retirement plan. But what exactly does that mean? (Hint: It doesn’t mean that your plan is sponsored by the District of Columbia.) “DC” actually stands for “defined contribution” plan. Defined...

By Ian Berger, JD IRA Analyst You may know that you participate in a DC retirement plan. But what exactly does that mean? (Hint: It doesn’t mean that your plan is sponsored by the District of Columbia.) “DC” actually stands for “defined contribution” plan. Defined...

By Andy Ives, CFP®, AIF® IRA Analyst Question: Hello, I have heard Ed speak at several different Wells Fargo events and he spoke one time about clients who over contribute to their 401(k). I believe there was a strategy where they can move the excess to an IRA. Can...

By Andy Ives, CFP®, AIF® IRA Analyst Just as IRA and 401(k) plans have different levels of bankruptcy protection, so too do other possessions. Whether these assets are qualified or not, there are ways to shield oneself from creditors. Case in point - in order to...

By Sarah Brenner, JD IRA Analyst The Setting Every Community Up For Retirement Enhancement (SECURE) Act recently passed the House of Representatives by a large margin. It is currently stalled in the Senate. This bill includes a multitude of provisions that would...

By Ian Berger, JD IRA Analyst Question: As I understand it, a contribution would be income tax free when sent directly from an IRA to a 501(c)(3) organization.  It is not clear to me if the distributions still will affect my MAGI that in turn will affect Medicare Part...

By Ian Berger, JD IRA Analyst Participating in a company plan, like a 401(k) or 403(b) plan, is a great way to save for retirement. But to make sure that employees don’t use those plans as checking accounts, Congress has imposed limits on when you can withdraw your...

By Andy Ives, CFP®, AIF® IRA Analyst Many company retirement plans – like a 401(k) – offer company stock as an investment option. Under special tax rules, a plan participant can withdraw the stock and pay regular (ordinary) income tax on it, but only on the original...

By Sarah Brenner, JD IRA Analyst Question: Hi Ed, I have heard conflicting reports. Would the proposed SECURE Act affect Roth IRAs? Or, is the elimination of the stretch on for Traditional IRAs? Many thanks! Chad Answer: Hi Chad, There does seem to be a lot of...

By Sarah Brenner, JD IRA Analyst You may wonder about naming your trust as your IRA beneficiary. For some that may be the way to go, but you should be careful. Trusts are not for everyone. There are trade-offs and consequences. Trusts as IRA beneficiaries create...

By Ian Berger, JD IRA Analyst Sometimes it pays to go solo. For self-employed individuals looking to maximize their nest egg, a solo 401(k) plan -- also known as an “individual 401(k)” or a “uni-k” -- may be a better choice than a SIMPLE or SEP IRA. Who Can Have a...

By Andy Ives, CFP®, AIF® IRA Analyst By the look of everyone’s Facebook and Instagram photos, it appears we are all flying Gulfstream jets around the world, relaxing on far-away beaches and lighting Cuban cigars with twisted-up $100-dollar bills. Is the economy really...

By Sarah Brenner, JD IRA Analyst It is not unusual for many workers today to have a side gig. They may have job, and it might even be full time, but it’s still not enough to make ends meet. So, they operate their own business on the side. The extra income can be...

By Ian Berger, JD IRA Analyst Question: I read your November 29, 2017 explanation of rollovers and the time limitations. But my issue is still unclear to me. In December 2018, my husband made a transfer from his 401(k) to an IRA to a Roth IRA. We intended to do the...

By Ian Berger, JD IRA Analyst Many of you who participate in a company retirement plan may have heard that the plan is “qualified” or “tax-qualified.” That sounds reassuring, but what exactly does it mean? In other words, what qualifies a qualified plan to be...

By Andy Ives, CFP®, AIF® IRA Analyst Roth IRAs and Roth 401(k) plans are incredibly popular, and why wouldn’t they be? Both offer tax-free earnings and allow the account owner to pass tax-free dollars to their beneficiaries. However, despite the ubiquity of Roth...

By Sarah Brenner, JD IRA Analyst Question: I have read your updates and shared information regarding the SECURE bill that is in the Senate currently.  The information discusses the non-spouse beneficiaries of IRAs will need to take distributions over 10 years as a...

By Ian Berger, JD IRA Analyst When driving your car, most of the time you’re going forward. But sometimes, like when you back into a parking spot in anticipation of beating the traffic after a sporting event or concert, you must shift gears to reverse. So it is with...

By Ian Berger, JD IRA Analyst ‘Tis the season for bee stings and mosquito bites. Just like those summer irritations, 401(k) plan loans have their own annoying rules that can make them risky transactions. Fortunately, a provision of the 2017 tax reform law applied a...

By Sarah Brenner, JD IRA Analyst Happy 4th of July to all the loyal readers of the Slott Report! This summer holiday is a time for barbecues. This is a time when all ages come together to celebrate. Families will gather to grill hot dogs, roast marshmallows and watch...

By Sarah Brenner, JD IRA Analyst Did you inherit an IRA from someone who is NOT your spouse? This is not uncommon. Maybe you inherited from a sibling or a parent or a friend. If this is your situation, you will want to proceed with caution. For nonspouse beneficiaries...

By Andy Ives, CFP®, AIF® IRA Analyst Question: Your advice, articles, publications and books I’ve purchased over the years have been great and most informative. Great job! My question is with regards to NUA – I retired recently (age 66) and had a company 401(k) to...

By Andy Ives, CFP®, AIF® IRA Analyst Prior to 2002, a default option for paying out required minimum distributions from an inherited IRA to a beneficiary was the 5-year rule. If the IRA owner died before their required beginning date and an election was not made in a...

By Andy Ives, CFP®, AIF® IRA Analyst Roth IRAs are a wonderful way to save for retirement. A person can sock away $6,000 a year (plus another $1,000 if they are age 50 or older) and the earnings will grow tax free. Plus, most custodians allow Roth IRA dollars to be...

By Sarah Brenner, JD IRA Analyst Question: I set up a Roth outside my employee retirement plan. I retired on 10-01-2018. I set up an automatic contribution to my Roth IRA from my checking account and, up to this day, still continue to contribute to the Roth IRA ....

By Sarah Brenner, JD IRA Analyst The road to retirement is long. Along the way you may need or want to move your retirement funds. Maybe you are leaving a job or maybe you are just looking for a new investment strategy. When the time comes to make a move, you will...

By Sarah Brenner, JD IRA Analyst Every single month since January of 2014, Billy Joel has headlined a sold-out show at Madison Square Garden. Demand for tickets to see the Piano Man has not waned. Ticket sell out quickly. Millions of fans will attest that Billy Joel,...

By Andy Ives, CFP®, AIF® IRA Analyst Question: I am over 70.5 and I have to take an IRA minimum distribution or else pay taxes and penalties on scheduled amount. My question is - can I take the mandatory distribution which I will pay taxes on anyway and then roll the...

By Andy Ives, CFP®, AIF® IRA Analyst A time machine would be cool to have. Even if it only worked on financial assets, it sure would come in handy. One might jump into the future and see if an investment paid off, or you could look around to see where the smart money...

By Andy Ives, CFP®, AIF® IRA Analyst The pro-rata rule is the formula used to determine how much of a distribution is taxable when an IRA account consists of both pre-tax and after-tax (basis) dollars. The rule requires that all SEP, SIMPLE, and traditional IRAs be...

By Sarah Brenner, JD IRA Analyst Question: I am a financial advisor and want to be clear on something. If a client has a SIMPLE IRA that they are contributing to and have an IRA and are 70.5, can they aggregate the distributions for both and remove from the IRA? Wanda...

By Sarah Brenner, JD IRA Analyst When it comes time to calculate your required minimum distribution (RMD) from your IRA, you may wonder which life expectancy table to use. Last updated by the IRS back in 2002, there are three possible tables for IRA owners and...

By Sarah Brenner, JD IRA Analyst SIMPLE IRAs are not so simple. One factor that makes SIMPLE IRAs tricky is that they are subject to unique rules, found nowhere else in the tax code, such as the two-year holding period. Two-Year Holding Period When does the two-year...

By Andy Ives, CFP®, AIF® IRA Analyst Question: IRA HELP, I’ve got a client who is retiring early. He has roughly $1,000,000 in an IRA now which he could initiate a 72(t) with.  That will not generate enough cash flow to support their needs. He also has an additional...

By Sarah Brenner, JD IRA Analyst The IRS has announced the 2020 inflation-adjusted limits for Health Savings Accounts (HSAs). How an HSA Works An HSA is a tax-free account that is used to pay for qualified medical expenses that aren’t covered by insurance. It is...

By Andy Ives, CFP®, AIF® IRA Analyst Employer-sponsored retirement plans, like 401(k) and 403(b) plans, have some definitive benefits vs. IRA accounts. For example, company plans provide an unlimited amount of protection from bankruptcy, while IRA contributions and...

By Sarah Brenner, JD IRA Analyst Question: I have a question about avoiding RMDs for a still-working 73 year-old in a 401k plan.  I realize most people my age are looking forward to retirement, but I love what I do and am delighted to continue to be able to work. I am...