SIMPLE IRA | Ed Slott and Company, LLC

SIMPLE IRA

Inherited IRAs and SIMPLE IRA Creditor Protection: Today's Slott Report Mailbag

Thursday, May 25, 2023
Question: In 2021, my wife inherited an IRA from her sister who was 4 years younger. My wife therefore is an EDB (eligible designated beneficiary). Her sister was 66 years old at date of death. My wife has been taking RMDs based on her own age. What happens when my wife dies? Do all the following beneficiaries have 10 years to deplete the inherited IRA? Are there RMDs that need to be taken each year for those beneficiaries? If so, is the RMD based on the factor that my wife was using?
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Roth-O-Mania!

Monday, January 23, 2023
SECURE 2.0 is now the law of the land and one thing is very clear. Roth-O-Mania is here! In their quest for more revenue, Congress has created more options to save with Roth accounts. These accounts bring in the immediate revenue that Congress desperately needs. For retirement savers, these Roth options offer the promise of potential tax-free earnings and withdrawals down the road.
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Required Minimum Distributions and SIMPLE IRAs: Today's Slott Report Mailbag

Thursday, December 29, 2022
QUESTION: I have an inherited IRA from my father. He was born 9-27-1927 and died 7-19-2019 at age 91. I was born 12-13-1952 and my age is 70. Two on-line calculators offered by brokerages show the factor this year (2022) to be 18.4 on my inherited IRA from my father. I cannot verify that factor on any of the IRS tables. Could you copy me or direct me to the correct table? Many thanks, Jim
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Big Increase in Many 2023 Retirement Plan Contribution Limits

Monday, December 12, 2022
The IRS has announced the retirement contribution limits for 2023. Because many of these limits are tied to inflation, it shouldn’t come as a surprise that some of the limits had a big jump. Here’s a summary:
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Is it Too Late to Open Up a Small Business Retirement Plan for 2021?

Wednesday, January 12, 2022
As we move into 2022, small business owners may be wondering whether they still have time to establish a new retirement plan for 2021. The short answer is: “It depends.” There are several retirement plan options especially designed for small business owners, including the self-employed. These include SEP IRAs, SIMPLE IRAs and Solo 401(k)s. All three can be opened up and maintained easily and inexpensively, and all allow tax-deductible contributions that can be significantly higher than the IRA contribution limit.
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SIMPLE IRAs and IRA Contributions: Today's Slott Report Mailbag

Thursday, March 18, 2021
Question: Hi, I found you by searching to find out if we can offer two SIMPLE IRA options for our employees. I don't know if that is something permitted. The idea is to have a cryptocurrency option set up as a SIMPLE in addition to the SIMPLE we already have in place. I'm reaching out in the hopes someone can help me with a definitive answer. I have spoken with our CPA, however, he was not sure. Thank you for any help you can provide.
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First Time RMDs and SIMPLE IRA Contributions: Today's Slott Report Mailbag

Thursday, February 04, 2021
Question: I am going to turn 72 in December of 2021. When I take my RMD, what is the dollar amount I use to calculate my RMD? Is it the account value ending December 31, 2020, or December 31, 2021? Thank you for any clarification. Bob
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The Two-Year Holding Period for SIMPLE IRAs

Monday, June 03, 2019
SIMPLE IRAs are not so simple. One factor that makes SIMPLE IRAs tricky is that they are subject to unique rules, found nowhere else in the tax code, such as the two-year holding period. Two-Year Holding Period When does the two-year holding period begin? This is a question that often creates confusion. The two-year holding period begins with the date the employee’s first contribution is deposited to the SIMPLE IRA. It is not the date employment begins or even the date you become eligible to participate in the SIMPLE IRA plan. 25% Early Distribution Penalty Distributions taken from a SIMPLE IRA before age 59 ½ are subject to an early withdrawal penalty of 25% when withdrawn during the two-year holding period.
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The Consequences of Breaking Rollover Rules

Thursday, April 06, 2017
This week's Slott Report Mailbag looks into IRA rollovers, IRA transfers, and back-door Roth IRAs.
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An IRA Rollover Quiz

Wednesday, April 05, 2017
Most people think it is easy to move their retirement assets. But is it? The following is a quick quiz. How many of these rollover questions can you get correct? The answers are at the end of the quiz.
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