Can I “Superfund” a 529 College Plan For My Grandchild?
This week's Slott Report Mailbag looks "superfunding" a 529 college plan and goes a step further on a question answered in last week's mailbag on IRA annuities.
IRA annuity
Can I Convert an Annuity to a Roth IRA?
A holiday weekend version of The Slott Report Mailbag features questions concerning a 1099-R filing error, the possibility of converting an annuity to a Roth IRA and the viability of the often discussed (at least in this space) back-door Roth IRA.
How are IRA Annuity RMDs Calculated After Life Annuitization?
The IRA rules are very complicated. The RMD (required minimum distribution) rules are very complicated. Annuity rules are very complicated. Put them all together and what do you get? Usually, just a mess of chaos and confusion. Today, we look at what happens to RMDs when you annuitize your IRA annuity over your lifetime or over a joint lifetime (your lifetime, plus the lifetime of another person). The answer provided below is excerpted from our soon-to-be-released must-have resource, The Definitive Guide to Required Minimum Distributions for Baby Boomers.
What Happens to My RMDs If I Annuitize my IRA Annuity?
One common question both clients and advisors ask is “how will RMDs (required minimum distributions) be calculated from my IRA annuity after the annuitization?” If you have, say, only one IRA, with a $100,000 balance that is annuitized, the answer is simple. The annuitized amount that comes out of the IRA each year will satisfy your RMD obligation.
What You Need to Know About Qualifying Longevity Annuity Contracts
On July 1, 2014 the Treasury Department released the long-awaited final regulations for Qualifying Longevity Annuity Contracts (QLACs). These new annuities will offer you a unique tool to help make sure you don't outlive your money. The QLAC rules, however, are a complicated mash-up of IRA rules and annuity rules, and you may need help in understanding their key provisions. To help you understand some of the most important aspects of QLACs, below are 3 critical QLAC questions and their answers.
What Type of Annuity Can be Rolled Over to an IRA?
This week's Slott Report Mailbag looks at potential annuities that can be rolled over to IRAsas well as a follow-up question on a younger spouse inheriting an IRA. Click to read this week's Q&A with our IRA Technical Consultant.
Use the Right Value for IRA Annuity RMDs and Conversions
IRA valuation is critical when determining your required minimum distributions (RMDs), which are based on the prior year-end fair market value (FMV) of IRA assets. It is also critical for Roth conversions, because the resulting tax bill is based on the FMV of your IRA assets on the date of your conversion. Valuing certain deferred annuities owned inside your IRA can be tricky, though. We explain in more detail below.
Slott Report Mailbag: Can I Recharacterize AGAIN?
You can't just contribute to an IRA if you have extra money lying around and don't work. It's a fact that many Americans aren't aware of, and it's one that came up in this week's Slott Report Mailbag. We also examine the ability to recharacterize part of a Roth conversion more than once and the process for establishing IRA annuities.
Annuity vs. IRA Annuity Confusion
Recently, a woman found out the hard way what can happen when she was confused over the difference between an annuity and an IRA annuity. As a result, an IRA distribution that she took was taxable to her even though she intended to roll over the funds tax-free to another IRA within 60 days. She asked the IRS for a waiver of the 60-day rollover rule due to her confusion but the IRS said no, so the problem couldn’t be fixed.
“How is My Annuity Going to Be Taxed?”
“How is my annuity going to be taxed?” It’s a question that's asked frequently, but one that can have several different answers. That's because an annuity can be taxed differently depending on the type of annuity you are receiving distributions from, as well as the type of the account it's in.
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