by Kenny | Jul 18, 2024
By Ian Berger, JD IRA Analyst Question: One of our clients wants to cash out his IRA and then roll it into a Roth IRA within 60 days. Can this be done directly, or does it have to be rolled back into an IRA first and then converted? Thanks, Samuel Answer: Hi Samuel, A...
by Kenny | Jul 16, 2024
By Andy Ives, CFP®, AIF® IRA Analyst When an IRA owner does a Roth conversion, there is typically a 5-year clock for the earnings on the converted dollars to be tax free. If a person already had a Roth IRA for 5 years AND is over 59 ½, there is no conversion...
by Kenny | Jul 15, 2024
By Ian Berger, JD IRA Analyst One of the more interesting rules (if any could be called “interesting”) from the 2022 IRS proposed regulations requires spouse beneficiaries in some situations to take RMDs (required minimum distributions) before doing a spousal...
by Kenny | Jul 11, 2024
By Andy Ives, CFP®, AIF® IRA Analyst QUESTION: Do required minimum distributions (RMDs) need to be taken when a non-spouse beneficiary inherits Roth IRA? It seems this has been a point of confusion for some time. ANSWER: This is something that confuses a lot of...
by Kenny | Jul 10, 2024
By Sarah Brenner, JD Director of Retirement Education If you are charitably inclined and have an IRA, a Qualified Charitable Distribution (QCD) can be a great strategy. With a QCD, you can move IRA funds to the charity of your choice tax-free. Here are 12 QCD rules...
by Kenny | Jul 8, 2024
By Andy Ives, CFP®, AIF® IRA Analyst If I pour too much water into a glass, removing liquid from a different glass does not correct the problem. The excess water must be removed from the “offending” receptacle. Such is the case with excess IRA contributions. If too...
by Kenny | Jul 3, 2024
By Ian Berger, JD IRA Analyst If you take a taxable withdrawal from your IRA or 401(k) (or other company plan) before age 59 ½, you normally have to pay a 10% penalty in addition to taxes. But Congress continues to carve out exceptions to this penalty, and there are...
by Kenny | Jul 1, 2024
By Sarah Brenner, JD Director of Retirement Education More and more Americans have retirement savings in Roth 401(k)s. With their rising popularity come some complicated tax issues. These funds are often rolled over to Roth IRAs at retirement or when a...
by Kenny | Jun 27, 2024
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 Kenny | Jun 27, 2024
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 Kenny | Jun 24, 2024
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...
by Kenny | Jun 23, 2024
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 Kenny | Jun 20, 2024
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 Kenny | Jun 19, 2024
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 Kenny | Jun 17, 2024
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...
by Kenny | Jun 13, 2024
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,...
by Kenny | Jun 12, 2024
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...
by Kenny | Jun 10, 2024
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...
by Kenny | Jun 6, 2024
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...
by Kenny | Jun 5, 2024
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...
