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The Slott Report

Roth Recharacterization Update from IRS

It has been widely reported that the Tax Cuts and Jobs Act eliminated the ability to recharacterize Roth IRA conversions as of January 1, 2018. On the other hand, it kept the ability to recharacterize IRA and Roth IRA contributions. Despite all of the above, an unanswered question on Roth IRA conversions done in 2017 lingered. At the time of those conversions the taxpayer had the ability to recharacterize the conversion up to October 15, 2018. Was that option still available to them?

Tax Reform and Your IRA – 5 Things You Need to Know

The Tax Cuts and Jobs Act made sweeping changes to the tax laws. Brackets have been changed, deductions have been eliminated, and retirement plans have been affected. You may be wondering what the new law means for your IRA. Here are 5 things you need to know.

A Senior as a First-Time Home Buyer and QCDs: Today’s Q&A Mailbag

This week's Slott Report Mailbag answers readers' questions about purchasing a home as a senior (as a first-time home buyer) using IRA funds and QCDs under the Tax Cuts and Jobs Act.

Tax Law Updates to 529 Educational Plans

Now that the dust has settled and the tax code has been “reformed,” it’s time to unpack those changes and analyze how best they can help you and your clients. One of the changes was the expansion of 529 Educational Plans.

Tips for a Successful Tax Season

The IRS says it will start accepting and processing 2017 tax returns on January 29 and expects to issue nine of 10 refunds within 21 days. To get the fastest refund possible, file electronically and request direct deposit of the refund amount. The IRS says it won't start processing paper returns until mid-February, and requesting a mailed paper check adds more time to processing and delivery. The due date for 2017 returns is April 17, 2018, since April 15th is a Sunday and the 16th is Emancipation Day, a legal holiday in the District of Columbia.

Roth IRA Contributions and RMD Rules: Today’s Q&A Mailbag

This week's Slott Report Mailbag answers readers' questions about Roth IRA contributions and RMD rules.

Liability for Tax Underpayments, Penalties, and Interest: Relief for the “Innocent” Spouse

In many households, married couples divvy up the responsibilities; one will handle the bills and banking while the other cooks and does the grocery shopping, or one will do the laundry while the other manages the yardwork and house. This split often extends to annual income tax responsibilities, even in couples who use a professional preparer. However, when couples submit joint returns, both are jointly and severally liable for the information included in the return. That means if there’s an underpayment, both spouses are going to be liable for the debt.

Happy 20th Birthday Roth IRA! – Here Are 20 Roth IRA Facts You Need to Know

The year 1998 seems like a long time ago. In January 1998, Bill Clinton was in the White House and about to be impeached. The Unabomber was in the news and the Spice Girls were winning music awards. January 1, 1998 also brought us the launch of Roth IRA. However, unlike other ‘90’s memories, the Roth IRA is still going, stronger than ever. You may already be reaping the tax benefits of your own Roth IRA. Or, maybe you’ve hesitated to open one. The 20th anniversary may be the time for you to take the plunge. To celebrate the occasion, here are 20 Roth facts you need to know.

SEPP, SPIA, Rollovers, and 72(t): Today’s Q&A Mailbag

This week's Slott Report Mailbag answers readers' questions about the tax consequences of substantially equal period payments and rolling a 401(k) into a single premium immediate annuity IRA.

Creditor Protection for IRAs

One of the greatest benefits offered under ERISA are the anti-alienation provisions, which provide that benefits under a pension plan cannot be assigned or alienated. While there are some statutory exceptions, ERISA essentially prevents retirement assets from being joined in any legal process to collect a commercial debt. These actions include garnishment, attachments, and other similar legal devices. There are some exceptions to this rule, the most obvious being divorce or legal separation.

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