The Slott Report

As summer ends and fall approaches, so does the season for taking required minimum distributions (RMDs). There is a 50% penalty for failing to take an RMD, so don't miss one. But don't just take an RMD, plan ahead now to make it work for you. Possibilities...

You may ask if you should leave your IRA to a trust. This can be a complicated question. Trusts can be complex and retirement accounts are not like other assets.

Quick question. Client’s daughter died at age 41. Client is age 71. Can she combo her daughter’s 401k into her current Traditional IRA since she has to take RMD’s on the traditional and a Beneficiary/Inherited IRA would be based on her (Mom’s 71) current age for Beneficiary/Inherited RMD’s, OR does she have to open a Beneficiary/Inherited RMD no matter what and a combo of Traditional IRA and Beneficiary/Inherited IRA is not allowed.

For years we saw and heard the commercials – rollover your 401(k) to an IRA. They suggested that this was the only option – and the best option – for you. But it was not the only option; and it might not be the best option for you.

One of the most important things you learn in law school is how the law is structured. You are better able to analyze the rule (and predict outcomes) when you understand how it is was created and how is has been treated ever since. Every law starts with a broad concept.

Mr. Slott, My 45 year old daughter’s financial advisor has recommended for her NOT to put retirement contributions into a Roth IRA! His reason being that by paying taxes up front for a Roth, there is less money to grow!

IRAs have beneficiaries and "designated beneficiaries," and it is important to know the difference. If you wish your heirs to have the opportunity to take full advantage of "stretch" IRAs, and to avoid other possibly costly mistakes, be sure your heirs are designated beneficiaries.

Even rock stars get older. Although it may seem hard to believe, both Steven Tyler of Aerosmith fame and rock legend and reality tv star Ozzy Osborne celebrate their 70th birthdays in 2018. Steven Tyler turned 70 on March 26, 2018 and Ozzy will reach that milestone on December 3, 2018.

Both my husband and I turn 70 this year but only one of us has a required minimum distribution (RMD) from our retirement accounts. Here is why. RMDs begin in the year you turn 70 ½, not 70. He turned 70 in January, so he turned 70 ½ in July. That means that he has an RMD for this year from his retirement accounts.

As you accumulate money in an employer retirement plan, somewhere along the line you are going to be faced with one question: should I leave it in the plan or roll it out? For many, that question doesn’t arise until they separate from service or reach age 59 ½. Employees that participate in plans with in-service distributions before age 59 ½ will ask that question much sooner.