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IRS Waives 50% Penalty for Missed 2021 and 2022 RMDs Within the 10-Year Period

Last Friday (October 7, 2022), the IRS waived the 50% penalty on missed 2021 and 2022 inherited retirement account RMDs for beneficiaries subject to the SECURE Act 10-year payout period. The guidance was in IRS Notice 2022-53.

Roth Conversions and Designated Beneficiaries: Today's Slott Report Mailbag

Question: Hi Mr Slott, I read somewhere but couldn't remember where, if a person needs to withdraw an RMD but doesn't need the money, can he convert this RMD to a Roth IRA? Thanks in advance

60-Day Rollovers and Eligible Designated Beneficiaries: Today's Slott Report Mailbag

QUESTION: I have a client where we did a 60-day rollover this past January. The proceeds were put back into the account in less than 60 days. The client has asked me to rollover the 403(b) plan he’s had sitting with his former employer. Is this a second rollover violating the once-per-year rollover rule?

Eligible Designated Beneficiaries and RMD Aggregation: Today's Slott Report Mailbag

Question: Hi, My wife (68) inherited a traditional IRA and a Roth from her sister (71) in 2021. Both accounts have been moved to inherited IRAs. I’m trying to do some tax planning. Can you please confirm the following from my confusing research?

SECURE Act Regulations Are Here

On February 23, 2022, the IRS released the long-awaited proposed SECURE Act regulations. The new regulations clock in at 275 pages and offer guidance on many SECURE Act rules. They also include a few surprises. Here are some highlights.

Can EDBs Split Inherited IRAs?

A surviving spouse has a number of options regarding how to deal with IRAs inherited from his or her deceased spouse. The age of both the deceased and surviving spouse will most often dictate the decision as to how to proceed. Typically, a surviving spouse who is age 59 ½ or older will do a spousal rollover with the assets. A spousal rollover allows the surviving spouse to consolidate the inherited IRA into her own, thereby minimizing future paperwork and confusion. She will have full and unfettered access to the assets (other than potential taxes due).

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