Roth IRA | Ed Slott and Company, LLC

Roth IRA

ELIGIBILITY RULES FOR ROTH IRA CONTRIBUTIONS AND DEDUCTIBLE TRADITIONAL IRA CONTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG

Question: If your employer contributes to either a SEP IRA or a SIMPLE IRA, can you (the employee) also contribute to a Roth IRA? Regards, Alfred

Congress Looks to Eliminate Back-Door Roth Strategies

The House Ways and Means Committee has released a draft of proposed changes to retirement accounts, including adding income limits for conversions and eliminating the back-door Roth conversion strategy. These proposals are designed to raise revenue and are likely, at least in part, a response to recent headlines about large Roth IRAs held by billionaires. Unless otherwise noted, the proposals would be effective for 2022. Here is what this means for your retirement account.

IRA Rollovers & Keeping Track of Your Contributions: Today's Slott Report Mailbag

Question: Ed I heard on a podcast that you are the number one authority on IRAs, so I want to go to the most informative source. Could you answer this question for me?

ROTH IRA CONTRIBUTIONS AND QCDs: TODAY’S SLOTT REPORT MAILBAG

Question: I am 72 years old and have a Roth IRA. I have some extra cash in a bank account. Can I put that into my Roth IRA and how much can I contribute for 2021?

Backdoor Roth IRAs and Missed RMDs: Today's Slott Report Mailbag

Question: I read of a way to move money from an IRA to a Roth without incurring any taxes. You set up an IRA account and make a non-deductible contribution of $6,000, then you convert it into a Roth. Is this legal and possible? Thanks!

ROTH IRAS FOR CHILDREN AND ROLLOVERS OF RMDS: TODAY’S SLOTT REPORT MAILBAG

Question: Can you put funds into a Roth IRA for a 14 year old using money you have paid the child for doing chores? Client was told all he needed to do was keep a record of what was paid by to the child. I have always enjoyed your presentations. Thank you, Cathy

The Roth 5-Year Clock: Not Always the Full Five Years

We all know that if you want tax-free earnings in your Roth IRA, you must wait five-years. The Roth IRA owner has to have some “skin in the game,” so to speak, before the IRS grants the tax break. One must demonstrate a commitment to retirement savings in order to receive the tax-free carrot. Makes sense. But five years is so long! That’s more time than it takes to complete high school! Over the next five years there will be a Winter Olympics in Beijing and a Summer Olympics is Paris and we will be preparing for another Winter Olympics in Italy. So, if you want tax-free earnings in your Roth IRA by the time competitors are slaloming down the Dolomites, you better make that contribution or complete that Roth IRA conversion ASAP.

5 Takeaways from Ed Slott’s Instant IRA Success Workshop

On July 15 and 16, financial advisors from around the country gathered virtually for Ed Slott and Company’s Instant IRA Success workshop. We took a deep dive into the rules governing retirement accounts and engaged in some lively discussions of issues that advisors on the front line are facing regularly as they help their clients plan for a secure retirement. Here are five takeaways to share from our recent meeting:

The Pro-Rata Rule & IRA Beneficiaries: Today's Slott Report Mailbag

Hi. My name is John and I have a Roth question. I have read your most recent book but did not find the answer to this question. I have made non-deductible contributions to a traditional IRA for many years, so about half of the account is basis. I have no Roth account (yet). I recently left my job and rolled over my 401(k) into a separate rollover IRA. Will I have to include this rollover IRA along with the traditional IRA as part of the pro-rata rule in order to take advantage of Roth conversions? Hopefully, I did not screw up by removing funds from my prior employer.

The 10-Year Rule and Roth Conversions: Today's Slott Report Mailbag

A client of mine born in 1952 passed away in March 2021 and the IRA passed to her mother who is 91 years old. So, the 10 year rule applies to liquidate the IRA as she is not an eligible designated beneficiary (EDB). If the mother passes away at age 95 and leaves the inherited IRA to her son – how long does the son have to liquidate the account??? All the best

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