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The Slott Report

Required Minimum Distributions, Roth Conversion Taxes Highlight Mailbag

This week's Slott Report Mailbag discusses some complex, timely issues involving RMDs and what happens if someone who takes a Roth Conversion with the intent of spreading the tax over 2011 and 2012 dies suddenly.

Required Minimum Distributions for a Successor Beneficiary

Before we even get to the RMDs, what exactly is a successor beneficiary? Let’s say that Great-Uncle Scott dies and leaves his IRA to his daughter Rosemary. Rosemary is the IRA beneficiary. Rosemary names her nephew James as her “successor” beneficiary. If Rosemary dies with funds remaining in her inherited IRA, then James will succeed to her remaining benefit – he becomes the successor beneficiary.

Required Minimum Distributions While Working? Find Out in Mailbag

This week's Slott Report Mailbag discusses some complex, timely issues involving social security benefits and required minimum distributions while working past age 70 1/2. As always, we stress the importance of working with a competent, educated financial advisor to keep your retirement nest egg safe and secure.

IRA Subject to IRS Levy?

Can an IRA be levied by IRS?The bad news is that, yes, it can be subject to an IRS levy. The good news is that such a levy will not be subject to the 10% early distribution penalty if you are under age 59 ½ at the time of the levy. The amount taken by IRS will be reported as a distribution to you and you will owe income tax on the amount taken by IRS.

Can You Convert Assets to a Roth 401(k)? Part II

Can you convert assets to a Roth 401(k)? We initially tackled this question in a September 22nd article. Well...you need an update.

Year of Death Required Minimum Distributions

Required minimum distributions (RMDs) start at age 70 ½ for all traditional IRA owners, including those who have SEP and SIMPLE IRAs set up through their employers - even if they are still working for those employers at the time.

I'm Still Working; What's My RMD?

I get this question frequently. Many of us are looking at working beyond the age of 70 ½. What required distributions (RMDs) do you have to take if you continue working?

Don't Recharacterize Too Soon

Some taxpayers who did Roth conversions earlier this year have seen their account values drop. As a result, they are considering doing a recharacterization of their Roth back to an IRA. But maybe they should wait a while. Why? Maybe, if they wait long enough, the Roth account will recover and not need to be recharacterized. The better answer, however, lies in the rules for reconverting assets once they have been recharacterized.

SEP IRA Confusion

This week the Ed Slott and Company IRA Discussion Forum featured a question on whether or not a trust as a SEP IRA beneficiary should be any different than it would be with a traditional IRA account. The answer to that question is not really, but the relationship between SEP IRAs and traditional IRAs can be a confusing one. Want to see how?

3.8% Surtax: What You Need To Know

This week the Ed Slott IRA Discussion Forum featured a question on the recent Health Care Legislation. The new laws will impact IRAs in a number of ways, including a new 3.8% surtax. Curious as to how this new surtax could impact your IRA planning?

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