DIRECT TRANSFER (OR ROLLOVER) – THE BEST WAY TO GO!

By Jeremy Rodriguez, JD IRA Analyst I’m sure you’ve heard countless advisors mention that a direct transfer (or direct rollover) is the best way to move funds between IRAs or qualified retirement plans. But do you understand why? There are a number of reasons, and in...

REQUIRED MINIMUM DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD IRA Analyst Question: I have a question about avoiding RMDs for a still-working 72 year old in a 401k plan.  Suppose they don’t have to take 401k RMDs due to the still-working exemption from RMDs.  Let’s say the person knows they will retire next...

5 IRA CONTRIBUTION RULES THAT MAY SURPRISE YOU

By Sarah Brenner, JD IRA Analyst It’s that time of year again. Tax season is upon us. This is now the time when many individuals consider funding their IRAs. Contributing to an IRA may seem pretty straight forward and in many ways it is! But there can be twists. Here...

THE DISCLAIMER

By Andy Ives, CFP®, AIF® IRA Analyst A disclaimer is an interesting tool. It is a denial or disavowal of legal claim, or a formal refusal to accept an interest in something. “Release” and “waiver” are good synonyms. Oftentimes a disclaimer statement is used by a...

THE LUNAR LANDSCAPE OF BANKRUPTCY PROTECTION FOR INHERITED IRAS

By Jeremy T. Rodriguez, JD IRA Analyst When a legal question is clear, I like to imagine the landscape like the great plains of the midwestern United States.  The land is flat and lush, meaning problems are easily identified and the area can be easily traversed. On...

OPTIONS AND PITFALLS FOR NON-SPOUSE BENEFICIARIES

By Sarah Brenner, JD IRA Analyst Much attention is paid to the favorable options available when spouses are named as IRA beneficiaries. However, a significant portion of IRA assets will end up being inherited by individuals who are not a spouse of the decedent. Many...

IVAN SEEKS ADVICE

By Andy Ives, CFP®, AIF® IRA Analyst Ivan is an inventor at heart, but he is stuck in an office at a job he does not particularly care for. Ivan constantly daydreams about starting his own company and improving everyday life with his inventions. For 20 years Ivan...

ROTH CONTRIBUTIONS AND CONVERSIONS: TODAY’S SLOTT REPORT MAILBAG

By Andy Ives, CFP®, AIF® IRA Analyst Question: In 2017, I opened a Roth IRA through my company. Being over 65, I mistakenly thought I could convert Traditional IRA funds to the Roth if I paid tax on the rollover amount. In August 2018, I had Schwab roll $50,000 into...

“GAP ANALYSIS”

By Andy Ives, CFP®, AIF® IRA Analyst There are many gaps. Generation gap, stop-gap, The Gap Band. In baseball you can hit into the gap. Football linemen have an A-gap, B-gap and C-gap to concern themselves with. Of course, there is the Cumberland Gap. And there is a...

NUA AND EMPLOYER 401(K) PLANS: TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD IRA Analyst Question: If I convert Trad IRA funds to a Roth IRA, does the ratio of After-Tax Contribution to Total IRA holdings include 401k holdings or only IRA holdings. I am a recently retired pilot and want to make Trad to Roth IRA conversions...

10 THINGS TO KNOW ABOUT THE REQUIRED BEGINNING DATE FOR IRAS

By Sarah Brenner, JD IRA Analyst If you have an IRA, you may have heard the term “required beginning date” or “RBD.” This is an important date that every IRA owner should understand. The significance of the RBD is not limited to IRA owners. It is a critical date for...

RMDS AND SPOUSAL BENEFICIARIES: TODAY’S SLOTT REPORT MAILBAG

By Jeremy Rodriguez, JD IRA Analyst Question: Hello Ed, I have an elderly client in his 80’s, not in the best of health. He has named his spouse (also in her 80’s) along with his 4 children as primary beneficiaries of his IRA. That said, I know the 4 children will...

SO YOU WANT TO THROW A 401(K) HOUSE PARTY?

By Andy Ives, CFP®, AIF® IRA Analyst When it comes to 401(k) plans, I feel like the Johnny Cash lyric…“I’ve been everywhere, man.” I’ve wholesaled record keeping platforms to financial advisors and sold direct to business owners. I’ve taught novice investors about...

INVESTING IRA MONEY IN REAL ESTATE

By Jeremy T. Rodriguez, JD IRA Analyst So, you want to invest your IRA money in real estate? Every so often we get this question from advisors wondering what they should look out for. Under the tax code, real estate is a permissible investment for IRAs. However, that...

RMDS & QCDS: TODAY’S SLOTT REPORT MAILBAG

By Andy Ives, CFP®, AIF® IRA Analyst Question: Client passed in the middle of December 2018, but did not take her RMD.  We are setting up beneficiary IRA accounts.  We will be moving assets over to the beneficiary IRA accounts and then the beneficiary will take the...

CORRECTING EXCESS IRA CONTRIBUTIONS WITHOUT PENALTY

By Sarah Brenner, JD IRA Analyst Not all contributions to IRAs belong there. When a contribution is not permitted in an IRA, it is an excess contribution and needs to be fixed. The bad news is that excess contributions happen easily and often. The good news is that if...

DISABILITY – A HIGH HURDLE

By Andy Ives, CFP®, AIF® IRA Analyst There are a number of ways an individual can avoid the 10% early withdrawal penalty from their IRA or employer work plan. Some exceptions apply specifically to IRAs (i.e. higher education; first-time home buyer, etc.) and others...