2021 New Year's Resolutions for Your IRA
Monthly IRA Updates

Ed Slott

Featured Article

2021 New Year's Resolutions for Your IRA

By Sarah Brenner, JD
Director of Retirement Education

By Sarah Brenner, JD

A new year brings a fresh start, and after 2020, we need that more than ever. You probably have a few resolutions for 2021. When making your list of goals for the new year, don’t overlook your IRA. Here are a few suggestions for your IRA for 2021.

1. Act sooner, rather than later. Thinking about making an IRA contribution? You have until the tax-filing deadline, including extensions, to get it done. This means you can still make your 2020 IRA contribution anytime until April 15, 2021. But why wait until the last minute? Get it done sooner. By doing so, you will not only avoid last-minute problems but also allow your IRA to grow faster. While you’re at it, why not consider making your contribution for 2021 at the same time? Making your contributions early can produce a surprising difference in the amount you will have saved in your IRA when you retire.

RMDs were waived for 2020, but they are back for 2021. If you are required to take an RMD for 2021, why not apply the same “get it done” philosophy? While some rare individuals may have valid reasons for delaying their RMD until the last minute, it usually makes sense not to wait that long. A missed RMD can result in a 50% penalty. You don’t want to mess around here. Get that RMD out sooner rather than later.




Q: Can a retired person not working contribute to a Roth IRA?


Q:I have heard that if you make a deductible contribution to a traditional IRA it can reduce the value of your qualified charitable distribution. Is the same thing true if you make a SEP contribution?


Q: Do you have to pay back all of the CRD in 3 years to get any of the tax benefit? What if you fall short of paying it all back? Is it ALL still taxed?


Q: I recently retired and I plan to relocate to Tennessee. I would like to purchase a new home. Can I pull funds from my IRA to do so, and what would be the implications?


Q: My husband has a 401(k) that has some funds that are Roth 401(k) and some that are traditional 401(k). When he retires, will he transfer these to two different IRAs (regular and Roth) or will they go into one account where we will have to allocate withdrawals according to the percentage of the two types of funds?


Have a question for our IRA Technical Team?
Email your questions to us at mailbag@irahelp.com. Selected questions will be featured every Thursday in the Slott Report.

Press Room
USA Today


Feb 10

February 10

Join America's IRA Expert, Ed Slott, for FA Virtual Summit, the largest virtual event dedicated to financial advisor growth.

This 1-day event features numerous industry leaders with proven insight in client engagement and practice management who are growing exponentially despite the pandemic!

Learn More

Feb 18-19

February 18-19

Dive into an immediately-actionable IRA immersion! Spend two full days with America’s IRA Experts learning the most timely retirement planning strategies anywhere.

Plus, with valuable direct access to our team through a virtual Q&A chat experience, no questions will be left unanswered.

Up to 12 CE credits

Learn More

Feb 23

2:00 ET February 23

Join InvestmentNews' Chief Content Officer George Moriarty as he sits down with IRA planning expert Ed Slott one week before the release of his highly anticipated book, The New Retirement Savings Time Bomb.

Discover strategies and get answers to your clients' biggest questions in 2021.

Learn More

Feb 24-25

February 24-25

SEC rules, TAX changes, Volatility of In-person/Virtual efforts. Tune in to learn everything you need to know about how to thrive and adapt to the massive changes we're all facing today.

Learn More



The highly anticipated The New Retirement Savings Time Bomb by Ed Slott, CPA, America’s IRA Expert, is now available for preorder!

Learn More

The American College


Timely, Advanced Retirement Planning Education

For financial pros looking to gain a competitive advantage with their professional knowledge, subscribe to Ed Slott's IRA Advisor and our new Heather Schreiber’s Social Security Advisor monthly newsletters!

Learn More

Facebook Twitter LinkedIn YouTube

Ed Slott and Company, LLC 100 Merrick Road -- Suite 200 E Rockville Centre, New York 11570 United States (516) 536-8282