The Slott Report

This is the first piece of a two-part article delving into 10 things you probably didn’t know about retirement plans. While many of the rules applicable to retirement plans are easy to remember, there are some important ones that are not always at the forefront of your thought process, and may impact your financial well-being. We present some of those here, and will follow up with others next we

The Internal Revenue Code sets dollar limitations on benefits and contributions applicable to qualified retirement plans and IRAs. Many limitations will change since the Consumer Price Index (CPI) increase met the statutory threshold that triggers their upward adjustment. Listed below are a few of the items that are scheduled to increase in 2012.

Social Security and Supplementary Security Income (SSI) beneficiaries are receiving a cost of living adjustment (COLA) in 2012, the first time this has happened in several years. While this may sound like a good thing, it’s actually a “mixed bag” for a couple of reasons.

One of the first things you should consider before thinking about selecting a financial advisor is putting together a list of goals you wish to accomplish. This list will provide the basis for establishing your planning objectives.

Employees with higher incomes will be eligible for a tax break if they save in a traditional IRA, can contribute to a Roth IRA, or qualify for the saver's credit. That's just one piece of good news from an IRS announcement late last week. Click to read the others.

October 17th is not the only important date this month for retirement account owners. This past Monday was a date circled on the calendar of many of you. For most of you, that was the final deadline to complete a timely Roth recharacterization of a 2010 Roth IRA conversion (the deadline is now October 31st for certain individuals affected by Hurricanes Irene and Lee, or the wildfires in Texas). Click to read more about why October 31st is also a key deadline to be aware of.

A final, final word on the Roth recharacterization topic. In an article posted here on October 11, 2011, we mentioned that the deadline for recharacterization in certain areas affected by Hurricanes Irene and Lee and the Texas wildfires had been extended to October 31, 2011. Since then, many readers have asked what states and counties were included in this extended deadline. So, as an accommodation to these folks, we’re providing some additional information.

Self-directed IRAs provide some different investing options, but they come with risks. Jeffrey Levine details the dangers in the video below and provides 5 tips you can use to safeguard yourself against fraud in these cases.

There is one final word to add on the Roth recharacterization deadline for Roth IRA conversions completed in 2010. The recharacterization deadline for residents residing in certain counties of states impacted by Hurricanes/Tropical Storms Irene and Lee, as well as the Texas wildfires, has been extended to October 31, 2011. Click for details regarding this relief on the IRS website.

This week's Slott Report Mailbag answers questions about reporting Roth conversion income deferred to 2011 and the process involving annuities, required minimum distributions and IRAs.