The Slott Report | Ed Slott and Company, LLC

The Slott Report

IRS Allows Spouses to Roll Inherited IRAs Through Own Trusts to Their IRAs

In private letter rulings (PLRs) 201430026 and 2014130029, IRS allowed the surviving spouses to roll their inherited IRAs through a trust to their own IRAs. The twist here is that the trust beneficiary was the spouse’s own trust, not a trust established by the decedent. In nearly identical situations, a husband named his wife’s trust as the beneficiary of his IRA. Both husbands died before attaining age 70 ½. Properly titled inherited IRAs were set up for the trust beneficiaries. Each wife was the trustee of her own trust and had no limits on her ability to take distributions

Should I ALWAYS Convert Funds to a NEW Roth IRA?

This week's Slott Report Mailbag looks at how many times you should convert funds from the same Roth IRA and if a fee to close an IRA account is considered a distribution for tax purposes. As always, we recommend you work with a competent, educated financial advisor to keep your retirement nest egg safe and secure. You can find one in your area here.1.I'm moving my traditional IRA to another company and will be charged $100 to close the account. Will that $100 be considered a distribution for tax purposes? Can I send a check for $100 to the new company so the full amount is transferred?

5 Retirement Account Creditor Protection Myths ... And What Facts REALLY Are

The creditor protection rules that apply to retirement accounts are complex and frequently misunderstood. In an effort to correct some of the most frequently misunderstood concepts and provide some clarity in these seemingly murky waters, below we explore 5 Retirement Account Creditor Protection Myths and then give you the real facts behind them.

How to Pay Your IRA Fees

The financial institution where you have your IRA, what we call your IRA custodian, is allowed to charge fees for maintaining and administering your IRA. If there are any fees associated with your IRA, they must be disclosed to you. The fees are usually listed in the IRA disclosure statement, which is one of the documents you received when you opened your IRA. IRA fees are usually in two broad categories: administrative fees and sales commissions Below we explain how to pay these different types of fees.

A Tale of Two Spouses Inheriting IRAs

Ann and Zelda are both 72 years young and now widows after their 74-year-old spouses died this year. Both inherited an IRA from their spouse in the amount of $100,000. Ann’s advisor had her move the funds to an inherited IRA. The account is titled Alan, deceased, IRA fbo Ann. Zelda’s advisor had her move the funds into an IRA in Zelda’s name. The account is titled Zelda’s IRA. There age and circumstances are where the similarities end. Click to read about their different stories.

Can I Recharacterize Funds Rolled Over From an Employer Retirement Plan to a Roth IRA?

This week's Slott Report Mailbag looks at IRA trust beneficiary maneuvers and how to disclaim yourself as an IRA beneficiary. Click to read this week's Q&A with our IRA Technical Expert.

5 Questions Commonly Asked by 401(k) Participants

On Monday, we will be celebrating Labor Day, a holiday established to pay tribute to the American workforce. Much of that workforce has access to some type of employer plan and, for more than 50 million workers, that plan is a 401(k) plan. So, with that in mind and in honor of Labor Day, this week we take a look at 5 answers to questions commonly asked by 401(k) participants.

You Usually Don't HAVE to Name Your Spouse as IRA Beneficiary

If you are married and participate in your employer's ERISA covered retirement plan, such as a 401(k) or pension plan, your spouse must generally be the beneficiary of that company plan. Even if you didn’t name your spouse as the beneficiary, possibly because you weren’t married at the time you started working there, your spouse is usually automatically treated as the beneficiary of your company retirement plan - but they do not HAVE to be.

TWO IRA Rollovers From ONE Account in ONE Year: Nothing Good Happens

What happens to your IRA if you accidentally do two rollovers in one year? Nothing good. We explain why below.

Should I Keep All IRAs Separate?

This week's Slott Report Mailbag looks at combining IRA monies into one big IRA, how 401(k)s affect calculating yearly IRA distributions and whether leaving equal IRA shares to your three children is possible. Click to read this week's Q&A with our IRA Technical Expert.
 

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