THE SKINNY ON DC PLANS

By Ian Berger, JD IRA Analyst You may know that you participate in a DC retirement plan. But what exactly does that mean? (Hint: It doesn’t mean that your plan is sponsored by the District of Columbia.) “DC” actually stands for “defined contribution” plan. Defined...

BANKRUPTCY: FAIL TO PLAN? PLAN TO FAIL

By Andy Ives, CFP®, AIF® IRA Analyst Just as IRA and 401(k) plans have different levels of bankruptcy protection, so too do other possessions. Whether these assets are qualified or not, there are ways to shield oneself from creditors. Case in point – in order to...

7 COMMON QUESTIONS ON THE SECURE ACT

By Sarah Brenner, JD IRA Analyst The Setting Every Community Up For Retirement Enhancement (SECURE) Act recently passed the House of Representatives by a large margin. It is currently stalled in the Senate. This bill includes a multitude of provisions that would...

LESSENING THE HARDSHIP

By Ian Berger, JD IRA Analyst Participating in a company plan, like a 401(k) or 403(b) plan, is a great way to save for retirement. But to make sure that employees don’t use those plans as checking accounts, Congress has imposed limits on when you can withdraw your...

USING NUA FOR AN RMD – 3 STEPS

By Andy Ives, CFP®, AIF® IRA Analyst Many company retirement plans – like a 401(k) – offer company stock as an investment option. Under special tax rules, a plan participant can withdraw the stock and pay regular (ordinary) income tax on it, but only on the original...

THE SECURE ACT & IRA DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD IRA Analyst Question: Hi Ed, I have heard conflicting reports. Would the proposed SECURE Act affect Roth IRAs? Or, is the elimination of the stretch on for Traditional IRAs? Many thanks! Chad Answer: Hi Chad, There does seem to be a lot of...

SHOULD YOU LEAVE YOUR IRA TO A TRUST?

By Sarah Brenner, JD IRA Analyst You may wonder about naming your trust as your IRA beneficiary. For some that may be the way to go, but you should be careful. Trusts are not for everyone. There are trade-offs and consequences. Trusts as IRA beneficiaries create...

GOING SOLO

By Ian Berger, JD IRA Analyst Sometimes it pays to go solo. For self-employed individuals looking to maximize their nest egg, a solo 401(k) plan — also known as an “individual 401(k)” or a “uni-k” — may be a better choice than a SIMPLE or SEP IRA. Who Can...

USING RETIREMENT DOLLARS WITHIN THE 60-DAY ROLLOVER WINDOW

By Andy Ives, CFP®, AIF® IRA Analyst By the look of everyone’s Facebook and Instagram photos, it appears we are all flying Gulfstream jets around the world, relaxing on far-away beaches and lighting Cuban cigars with twisted-up $100-dollar bills. Is the economy really...

A SEP FOR YOUR SIDE GIG

By Sarah Brenner, JD IRA Analyst It is not unusual for many workers today to have a side gig. They may have job, and it might even be full time, but it’s still not enough to make ends meet. So, they operate their own business on the side. The extra income can be...

RETIREMENT ACCOUNT ROLLOVERS: TODAY’S SLOTT REPORT MAILBAG

By Ian Berger, JD IRA Analyst Question: I read your November 29, 2017 explanation of rollovers and the time limitations. But my issue is still unclear to me. In December 2018, my husband made a transfer from his 401(k) to an IRA to a Roth IRA. We intended to do the...

QUALIFYING TO BE QUALIFIED

By Ian Berger, JD IRA Analyst Many of you who participate in a company retirement plan may have heard that the plan is “qualified” or “tax-qualified.” That sounds reassuring, but what exactly does it mean? In other words, what qualifies a qualified plan to be...

ROTH IRA & ROTH 401(K) – THE BASICS

By Andy Ives, CFP®, AIF® IRA Analyst Roth IRAs and Roth 401(k) plans are incredibly popular, and why wouldn’t they be? Both offer tax-free earnings and allow the account owner to pass tax-free dollars to their beneficiaries. However, despite the ubiquity of Roth...

INHERITED IRAS AND RMDS: TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD IRA Analyst Question: I have read your updates and shared information regarding the SECURE bill that is in the Senate currently.  The information discusses the non-spouse beneficiaries of IRAs will need to take distributions over 10 years as a...

GOING IN REVERSE

By Ian Berger, JD IRA Analyst When driving your car, most of the time you’re going forward. But sometimes, like when you back into a parking spot in anticipation of beating the traffic after a sporting event or concert, you must shift gears to reverse. So it is with...

TAKING A LITTLE BIT OF THE STING AWAY

By Ian Berger, JD IRA Analyst ‘Tis the season for bee stings and mosquito bites. Just like those summer irritations, 401(k) plan loans have their own annoying rules that can make them risky transactions. Fortunately, a provision of the 2017 tax reform law applied a...

HAPPY 4TH OF JULY! – 4 IRA TIPS TO SHARE AT YOUR BARBECUE

By Sarah Brenner, JD IRA Analyst Happy 4th of July to all the loyal readers of the Slott Report! This summer holiday is a time for barbecues. This is a time when all ages come together to celebrate. Families will gather to grill hot dogs, roast marshmallows and watch...

CAUTION! NO ROLLOVER FOR NONSPOUSE BENEFICIARIES

By Sarah Brenner, JD IRA Analyst Did you inherit an IRA from someone who is NOT your spouse? This is not uncommon. Maybe you inherited from a sibling or a parent or a friend. If this is your situation, you will want to proceed with caution. For nonspouse beneficiaries...