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The changes would be particularly helpful for the growing number of people who are working into their seventies, says Ed Slott, founder of IRAHelp.com.
The qualified charitable distribution is a great way to be charitable and get a tax benefit. But not everyone who wanted to take advantage of the QCD in 2018 was able to.
Taking away the so-called stretch IRA option will likely push those who had been using it toward more active planning, like buying insurance within a trust, Slott says.
We're just through the 2018 tax season, and retirement expert Ed Slott says that there are some valuable takeaways for people who converted traditional IRAs to Roth.
Account holders over the age of 70 1/2 are subject to RMDs — required minimum distributions — which is the amount they’re obligated to withdraw from their tax-deferred retirement accounts and pay taxes on. “The government wants its money back,” retirement expert Ed Slott tells Yahoo Finance.
“If it’s a big enough issue, you should speak to a qualified tax preparer and seek professional advice on your personal situation,” Ed Slott, CPA and founder of IRAhelp.com, told FOX Business. “While you may be able to find some answers on your own by researching online, you can’t guarantee it’s accurate or applies to your unique situation.”
“That withholding is nowhere near enough,” said Ed Slott, a CPA and founder of Ed Slott & Co. in Rockville Centre, New York. “You’d have to set aside a lot for taxes.”
“Some people call it ruling from the grave,” said Ed Slott, who heads an eponymous retirement advice firm.
Make a direct transfer from the institution holding one account to the company where the money is going, says IRA expert Ed Slott. Ask the firm on the receiving end for help; any checks should not be made out directly to you. “That can become a tax trap,” he warns.
“This is more to alert people to take other sources of income into account,” Ed Slott, CPA and founder of IRAhelp.com, told FOX Business. “It helps to highlight situations that caused problems last year.”
