The Slott Report | Ed Slott and Company, LLC

The Slott Report

Roth IRA Conversion 10% Penalty Trap

A 10% early withdrawal penalty applies to taxable funds withdrawn from a traditional IRA before the account owner attains age 59 ½ unless an exception applies. The same penalty (with its own set of exceptions) also applies on distributions made from most employer-sponsored retirement plans, unless the payment is due to the participant’s separation from service in a year in which he or she attains age 55 or older. Click to read about two tax traps that will trip up an unsuspecting consumer and trigger the 10% penalty.

QCDs (Qualified Charitable Distributions) are Back

With the signing of the 2010 Tax Act last week, qualified charitable distributions (QCDs) from IRAs have been extended for 2010 and 2011 – with a twist.

Notice 1036: IRS releases guidance on income tax withholding

We have begun to receive the official numbers behind the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 President Obama will sign into law likely later today. Click to read the IRS Notice.

Inherited IRAs, Naming Beneficiaries Highlight Mailbag

The holiday season is upon us. It is time for friends, family and financial security. The answers to these consumer questions can help you wrap up your year-end planning.

IRA Contributions if you Participate in Employer Plan

Your client is making contributions to an employer plan and he/she wants to know if its possible to also contribute to a traditional IRA or to a Roth IRA.

2011 Roth Conversions, Naming Minors as Beneficiaries Highlight Mailbag

The holiday season is upon us. It is time for friends, family and financial security. The answers to these consumer questions can help you wrap up your year-end planning.

Over 70 1/2 and Still Working

Your client is over 70 ½ and is still working. Does he have to take an RMD? The answer is, it depends.

IRAs (SEP, Inherited, Stretch) Highlight Mailbag

IRAs, IRAs, IRAs. We have a full plate (leftovers from Thanksgiving) of IRA questions in this week's Mailbag. These questions touch on topics such as SEP IRAs, inherited IRAs and naming the trust as the beneficiary of IRAs.

In-Plan Roth Rollover Guidance Released

IRS has released guidance on the conversion of 401(k) and 403(b) plan assets to Roth 401(k) or Roth 403(b) accounts in Notice 2010-84. This guidance also applies to governmental 457(b) plans beginning January 1, 2011. Here are the highlights: Plan participants, spouses, and alternate payees who are current or former spouses can do the in-plan Roth conversion.

Year-End IRA Checklist

The holiday season is a time for checklists. The good news is you don't have to make this list, but make sure to check it twice. Ed Slott created this year-end IRA checklist just for ALL OF OUR LOYAL READERS. You can read about many of the often-overlooked year-end items that could lead to a retirement savings windfall. Guard the money you have worked and saved for this holiday season.
 

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