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The Slott Report

Net Unrealized Appreciation (NUA) and See-Through Trusts: Today's Slott Report Mailbag

Question: Good afternoon. I am looking for some Net Unrealized Appreciation (NUA) help, please. If someone does a rollover of company stock to an IRA, can she undo that rollover and then do an NUA transaction? Thanks, Alan

Top 10 IRA “Popular Confusions”

By Andy Ives, CFP®, AIF®
IRA Analyst
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The Ed Slott team answers thousands of IRA and work plan questions annually - emails, phone calls, in-person conversations, webinars, Q&A programs and texts. We accommodate all members of the Ed Slott Elite Advisor Group, work with non-member advisors at our 2-Day training programs, and answer questions from the general public via our weekly mailbag. Over time, certain inquiries repeat themselves. I call these “popular confusions.” Here are 10 IRA and work plan topics that you may have stumbled across yourself:

RMD RULES FOR INHERITED IRAS AND 401(k) DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG

Question: I have a new inherited IRA, and I believe that I am subject to BOTH the 10-year rule and to annual RMDs. Is this true?

Beware of Investing IRAs in NFTs

If you are thinking of buying an NFT (non-fungible token) with your IRA funds, you may want to reconsider. In Notice 2023-27, the IRS said that NFTs associated with “collectibles” are prohibited IRA investments. This could expose you to significant taxes and penalties.

October 16: Deadline for Correcting 2022 IRA Contributions

Maybe you made a Roth IRA contribution for 2022 and then discovered your income was too high. Maybe you contributed to a traditional IRA but later discovered that the contribution was not deductible. You may have made an IRA contribution and just changed your mind. You’d rather contribute to a Roth IRA or maybe not contribute at all. There is good news if you act quickly. You can fix these issues by correcting your 2022 IRA contribution by the upcoming October 16, 2023 deadline.

The 10-Year Rule and Spousal Beneficiaries: Today's Slott Report Mailbag

Question: I understand that my kids will need to empty my Roth IRA in 10 years, but do they need to take RMDs in years 1 through 9? I am beyond my RMD age.

“Mid-Air” Roth Conversions

If ever I was traveling from Los Angeles to Atlanta, I would choose a direct flight with no layovers. I want the most efficient route to my destination. Point A to Point B. Take off, land. Assuming no difference in ticket price and all things being equal, if another LAX to ATL itinerary included a stop in, say, Chicago, would there be any reason to take it? Why pass through another airport in another city when I can fly direct?

More on the Roth Catch-Up Contributions Delay

The August 28, 2023 Slott Report summarized IRS Notice 2023-62, where the IRS delayed the effective date of the SECURE 2.0 rule requiring catch-up contributions by higher-paid older employees to be made on a Roth basis.

The 10-Year Rule and 529 Plans: Today's Slott Report Mailbag

Question: My name is Bruce. I am 65 years old, and I have a question about the SECURE Act. My mother died at age 89 on April 19, 2023, and I inherited her IRA. She had been receiving RMDs for years and most recently filed her 2022 tax return indicating she had received her last RMD in December 2022.

Rules for Inherited IRAs that May Surprise Nonspouse Beneficiaries

Many IRA assets will ultimately go to nonspouse beneficiaries. When these beneficiaries inherit the funds, special rules kick in. Inherited IRAs are not like your own personal IRA account. Here are seven rules for inherited IRAs that may surprise you if you are a nonspouse beneficiary:
 

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