Understanding the Pro-Rata Rule
- Qualified Charitable Distributions ("QCDs") - QCDs allow taxpayers age 70 ½ and older to transfer up to $100,000 each year to a charity tax-free. The QCD also counts towards the annual Required Minimum Distribution.
- Qualified HSA Funding Distribution ("QHFDs") - QHFDs are tax-free transfers from your IRA to your HSA. The amount transferred cannot exceed the maximum annual HSA contribution. For 2018, an individual with Family High Deductible Health Plan ("HDHP") coverage can contribute up to $6,850 (plus an additional $1,000 for taxpayers age 55 and up). Taxpayers with Self-Only HDHP coverage can contribute a maximum of $3, for the 2018 taxable year 450 (plus the $1,000 catch-up for those ages 55 and older). Finally, you are allowed only one QHFD per lifetime.
- Rollover to Company Plans - If the company plan allows incoming rollovers, you can transfer the pre-tax portion to that plan. However, the funds can only be invested in the options offered by the plan and future distributions are subject to plan rules.
Content Citation Guidelines
Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.
Please be advised that prior to distributing re-branded content, you must send a proof to email@example.com for approval.
For white papers/other outflow pieces:
Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.
Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.
For Slott Report articles:
Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.
Please contact Matt Smith at firstname.lastname@example.org or (516) 536-8282 with any questions.