The Slott Report | Ed Slott and Company, LLC

The Slott Report

Using Your IRA for Charities

If you are thinking about making a charitable donation for this year, you might use money from your IRA to do so. If an IRA distribution is used to make a charitable donation, the IRA distribution will be taxed even though the money went to a charity for a worthy cause. If you are under age 59 ½ on the date of the distribution, you will also be subject to the IRS 10% early distribution penalty, unless there’s an exception such as disability. We covered that exception in an answer to a question in last Thursday's mailbag.

There is No Such Thing as a Non-Deductible IRA

I hear this a lot. "The contribution is to a non-deductible IRA." Or, "I have a non-deductible IRA." There is no such thing as a non-deductible IRA. There are non-deductible contributions made to an IRA. Think about it. Even if a contribution is made to a non-deductible IRA, it will not remain entirely non-deductible for long. There are some sort of earnings on the account – even if it is invested in a money market IRA. Would you make a contribution to an IRA that guaranteed no earnings for as long as you had any funds in the account?

Slott Report Mailbag: Can I Take an IRA Distribution Before Age 59 1/2 If I Am Disabled?

This week's Slott Report Mailbag includes questions on whether an employer plan allows for distributions and rollovers when an employee stops working for that employer, how to compute the taxes on an IRA and an inherited IRA and whether or not a disabled individual can take an IRA distribution before a certain age.

You Never "Make Too Much" to Make an IRA Contribution

Please, please don't make the mistake that so many people make and think you make too much money to make an IRA contribution. There is no limit on how much income you can make in order to make an IRA contribution. None, whatsoever. Yet, each year I speak with countless financial advisors and CPAs who are advising their clients that they cannot make an IRA contribution for the year because their income is too high. That is not true and don't you believe it for one second!

SIMPLE IRA Plans Require Notification by November 1

A "Savings Incentive Match Plan for Employees" (SIMPLE), is a retirement plan for small businesses that uses a special IRA (called a SIMPLE IRA) as the funding vehicle. November 1, 2012 is the deadline for employers who are continuing to offer a SIMPLE IRA plan for next year to send you a notification.

Slott Report Mailbag: Can I Perform More Than One Taxable Roth Conversion Per Year?

This week's Slott Report Mailbag comes LIVE from The Cosmopolitan in Las Vegas as we get ready for Ed Slott's 2-Day IRA Workshop this Saturday and Sunday. We answered questions on Roth conversions, the Roth IRA 5-year rules, and where an IRA goes at your death.

Funding a SEP IRA

If your employer offers a SEP (Simplified Employee Pension) plan, it's very similar to a profit sharing plan, except that contributions are placed into your designated SEP IRA. Once the funds are in your IRA, you own and control your own money. Your employer does not control the money after it's been deposited in your SEP IRA.

Ed Slott's 2-Day IRA Workshop: See You in Las Vegas!

The Slott Report is going on the road this week to Las Vegas, Nevada for Ed Slott's 2-Day IRA Workshop, Instant IRA Success, on Saturday, September 29 and Sunday, September 30 at The Cosmopolitan. There is still time to join us LIVE this weekend in Las Vegas. If you can't make it to Las Vegas this weekend, there are still ways to share in the experience.

Making Life Difficult For Your IRA Beneficiary

An IRA account owner is trying to keep things simple or just does not get around to changing a beneficiary form. Only one person ends up being named on the beneficiary form. The account owner exacts a promise from that person that they will make sure that the account is split between all the children, or all the grandchildren, or all the siblings or whoever is important to the account owner. The unwitting beneficiary agrees to this since, after all, it is only fair that the account be split.

Roth Conversion Tax, Inherited IRA and RMD Questions Highlight Slott Report Mailbag

As crisp temperatures and autumn colors cascade through our neighborhoods, people start eying year-end IRA and tax planning. We saw it in this week's Slott Report Mailbag with questions about a Roth conversion and paying the tax associated with it, distributions from inherited IRAs and the rules regarding what you can and can't do with RMDs (required minimum distributions).

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