Select Page

Financial Freedom is Available to Those
Who Learn
About it and Work For it

“Third-party posts from Ed Slott’s IRA Blog:”

IRA BLOG

THE IRA CONTRIBUTION DEADLINE IS ALMOST HERE

By Sarah Brenner, JD IRA Analyst The countdown to the much delayed 2019 tax filing deadline is on. The deadline is July 15, 2020, which is only a couple of days away. Time is running out. Is your IRA ready? Making Your 2019 IRA Contribution Due to the COVID-19...

read more

TOP 12 RMD WAIVER QUESTIONS

By Andy Ives, CFP®, AIF® IRA Analyst As we have written on many occasions, the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) waives required minimum distributions (RMDs) for 2020. This waiver applies to company savings plans and IRAs, including both...

read more

A ROUNDUP OF RECENT DOL AND IRS RETIREMENT PLAN GUIDANCE

By Ian Beger, JD IRA Analyst There’s been a flurry of recent government regulation of company retirement plans. Here’s a quick summary: Electronic Disclosure of Retirement Plan Documents On May 27, 2020, the Department of Labor published a final regulation making it...

read more

THE CARES ACT AND RMDS: TODAY’S SLOTT REPORT MAILBAG

By Andy Ives, CFP®, AIF® IRA Analyst Question: If someone took two IRA distributions earlier in 2020 that were considered RMDs, and now wishes to repay the cumulative amount back into the same IRA, are there any rules about the number of rollover deposits they can...

read more

EXCEPTIONS TO THE 10% EARLY DISTRIBUTION PENALTY FOR IRAS

By Sarah Brenner, JD IRA Analyst IRAs are supposed to be for saving for retirement but in challenging economic times like these many individuals may be forced to take distributions before retirement age. Be careful! If you tap your IRA before reaching age 59 ½, the...

read more

SIX MONTHS OF CRAZY – A SUMMARY OF RECENT RETIREMENT EVENTS

By Andy Ives, CFP®, AIF® IRA Analyst After a six-month sprint through a diabolical obstacle course of new laws, a pandemic, record unemployment, deaths, confusion and complete disruption of everyone’s professional and personal lives, this seems like a good time to...

read more

IRS EXTENDS ROLLOVER DEADLINE FOR 2020 RMDS

By Ian Berger, JD IRA Analyst The IRS has extended the rollover deadline for required minimum distributions (RMDs) taken from IRAs or company plans in 2020. In Notice 2020-51, released on June 23, the IRS said that any unwanted 2020 RMDs can be repaid via rollover to...

read more

IRS EXPANDS ELIGIBILITY FOR CORONAVIRUS-RELATED DISTRIBUTIONS

By Sarah Brenner, JD IRA Analyst On June 19, the IRS released additional guidance on coronavirus-related distributions (CRDs) from retirement accounts. The new guidance will make many more individuals eligible for these tax-advantaged distributions allowed under the...

read more

60-DAY ROLLOVERS: TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD IRA Analyst Question: Thank you for all the great resources you provide. I have been looking for an answer to my specific situation and have not been able to find a clear answer to what I think is a pretty straight forward situation/fact pattern....

read more

IRS ALLOWS REMOTE WITNESSING OF SPOUSAL WAIVERS

By Ian Berger, JD IRA Analyst In the wake of the coronavirus pandemic, the IRS has temporarily relaxed the rule that spousal consent to certain retirement plan distributions and loans must be witnessed personally by a notary public or a plan representative. In Notice...

read more

SPECIAL NEEDS TRUSTS AND CRDS: TODAY’S SLOTT REPORT MAILBAG

By Andy Ives, CFP®, AIF® IRA Analyst Question: Under the SECURE Act, if we can assume a Special Needs Trust can qualify for the stretch via the disabled beneficiary, what happens when the special needs trust beneficiary passes? The next named beneficiary (remainder)...

read more

SECURE ACT’S 10-YEAR RULE BRINGS NEW PLANNING OPPORTUNITIES

By Sarah Brenner, JD IRA Analyst By now, most IRA owners have heard the bad news. The SECURE Act eliminates the stretch IRA for the majority of beneficiaries who inherit in 2020 or later. Instead, for most, a 10-year payout rule will apply. Here is how this new rule...

read more

ROTH CONVERSIONS: PAYING TAXES FROM ANOTHER SOURCE

By Andy Ives, CFP®, AIF® IRA Analyst The King of the Land wanted to send 100,000 of his greatest warriors off to battle. However, he was told that 20,000 of the warriors needed to remain behind to protect the castle. The King of the Land did not like this news. He...

read more

2020 RMD WAIVERS: TODAY’S SLOTT REPORT MAILBAG

By Ian Berger, JD IRA Analyst Question: I understand that I don’t have to take any RMDs during 2020.  However, is the CARES Act rule that it is an-all-or-nothing for RMDs or can I take a portion of my RMD for 2020 but not all John Answer: Hi John, Since RMDs are...

read more

SHOULD I TAKE A LUMP SUM BUYOUT?

By Ian Berger, JD IRA Analyst As a result of the current economic downturn, we can expect more and more companies to offer lump sum buyouts to employees with defined benefit (DB) plan benefits. A lump sum buyout is a limited opportunity for DB plan participants to...

read more

3 REASONS TO ROLL OVER YOUR RETIREMENT FUNDS TO AN IRA

By Sarah Brenner, JD IRA Analyst More than 40 million Americans have filed for unemployment since the Corona virus pandemic hit in in the middle of March. With job loss can come questions of what to do with retirement savings such as your 401(k) plan. A rollover to an...

read more

ONE MORE CARES ACT MISCONCEPTION

By Ian Berger, JD IRA Analyst The Coronavirus Aid, Relief, and Economic Recovery (CARES) Act continues to cause confusion. In the April 22, 2020 Slott Report, we discussed four misconceptions surrounding the new law. In this article, we add one more: If your employer...

read more

CONVERSION NIGHTMARES

By Sarah Brenner, JD IRA Analyst With markets down, many IRA owners are thinking this may be the time for a Roth IRA conversion. Converting when account values are down can be a good bargain. You pay a tax bill on a lower balance now in exchange for potential tax-free...

read more

CRDS AND ROTH CONVERSIONS – ABUSE OF THE RULES?

By Andy Ives, CFP®, AIF® IRA Analyst The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or...

read more

IRA PROTECTION AGAINST THE EVIL GENIE IN THE LAMP

By Andy Ives, CFP®, AIF® IRA Analyst The evil genie in the IRA lamp wants your money. He roars with laughter at the thought of you facing hard times. Given an opportunity, he will line the pockets of creditors with your IRA dollars, and he will serve your remaining...

read more

CARES ACT EXPANDS HSAS

By Sarah Brenner, JD IRA Analyst The recently passed CARES Act includes some changes that impact your HSA. These changes will allow you to access more medical services without worrying about your deductible, and also enable you to take more tax-free distributions from...

read more

IRS ISSUES Q&AS ON CORONAVIRUS-RELATED DISTRIBUTIONS

By Ian Berger, JD IRA Analyst Under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), certain individuals can take up to $100,000 of distributions from IRAs and company plans during 2020 and receive special tax relief. Those distributions are...

read more

THE MEGA BACKDOOR ROTH IS USUALLY TOO GOOD TO BE TRUE

By Ian Berger, JD IRA Analyst For a number of years, the “mega backdoor Roth” strategy has been touted as a way for employees to convert large amounts of after-tax employee contributions to Roth IRAs. Unfortunately, in most cases the strategy won’t work. Here’s why....

read more

TECHNOLOGY, ROTH CONVERSIONS AND A SQUIRMING SON

By Andy Ives, CFP®, AIF® IRA Analyst 77 and sharp - that’s my dad. A voracious reader. Daily crossword puzzles. Curious. Engaged with the community. But he gets a little loose with technology. Comedic evidence suggests he is blissfully unaware if he is having a...

read more

4 CARES ACT MISCONCEPTIONS

By Ian Berger, JD IRA Analyst The Coronavirus Aid, Relief and Economic Recovery Act (CARES Act), signed into law on March 27, includes several important retirement-related provisions. Because some of these provisions are confusing, several misconceptions about the new...

read more

4 CARES ACT MISCONCEPTIONS

By Ian Berger, JD IRA Analyst The Coronavirus Aid, Relief and Economic Recovery Act (CARES Act), signed into law on March 27, includes several important retirement-related provisions. Because some of these provisions are confusing, several misconceptions about the new...

read more

QCDS – STILL AVAILABLE IN 2020 AND STILL A GOOD STRATEGY

By Sarah Brenner, JD IRA Analyst As the coronavirus pandemic has raged on, we have seen devasting images of overwhelmed hospitals and long lines of cars at food banks. If you are fortunate enough to have money to spare, you might be thinking about how you can help....

read more

RMDS & ROTH IRAS: TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD IRA Analyst Question: I took 25% of my 2020 required minimum distribution (RMD) from an inherited IRA on March 15, 2020. Can that be “undone” in accordance with the CARES Act and if so, how?  Thanks. Audrey Answer: Hi Audrey, The CARES Act waives...

read more

ROLLING OVER AN RMD, PART 2 – “JUST WAIT A MINUTE”

By Andy Ives, CFP®, AIF® IRA Analyst I grew up in the northeast, where snow squalls sweep across Lake Ontario and cede to blue skies, where 85-degree summer days change to a biting rain at a moment’s notice. The folksy phrase around town was, “If you don’t like the...

read more

ROLLING OVER AN RMD, PART 2 – “JUST WAIT A MINUTE”

By Andy Ives, CFP®, AIF® IRA Analyst I grew up in the northeast, where snow squalls sweep across Lake Ontario and cede to blue skies, where 85-degree summer days change to a biting rain at a moment’s notice. The folksy phrase around town was, “If you don’t like the...

read more

QCDS AND ROTH CONVERSIONS: TODAY’S SLOTT REPORT MAILBAG

By Andy Ives, CFP®, AIF® IRA Analyst Question: Hi. What are the rules for QCDs now that required minimum distributions (RMDs) have been cancelled for 2020? Thanks for your help. Jerry Answer: Jerry, Qualified charitable distributions (QCDs) are unaffected by the CARES...

read more

NO “FIRST MONEY OUT” RULE FOR 2020

By Sarah Brenner, JD IRA Analyst On March 27, the massive “Coronavirus Aid, Relief, and Economic Security Act,” or the “CARES Act,” was signed into law. The CARES Act includes a waiver of required minimum distributions (RMDs) for 2020. This waiver applies to company...

read more

THE CARES ACT 2020 RMD WAIVER: TODAY’S SLOTT REPORT MAILBAG

By Ian Berger, JD IRA Analyst Question: The virus pandemic has prompted legislation that has eliminated the requirement for me to take a required minimum distribution (RMD) from my IRA for the year 2020. Am I therefore allowed to do a partial Roth IRA conversion in...

read more

CARES ACT RELIEF FOR RETIREMENT DISTRIBUTIONS AND PLAN LOANS

By Ian Berger, JD IRA Analyst The recently-enacted “Coronavirus Aid, Relief, and Economic Security Act,” or CARES Act, includes special tax relief for IRA and company plan withdrawals made in 2020 and for company plan loans. Who gets relief? Both the distribution and...

read more

CORONAVIRUS RELIEF FOR RETIREMENT ACCOUNTS

By Sarah Brenner, JD IRA Analyst As the coronavirus pandemic has spread, many Americans have been hit hard. Their retirement accounts have also taken a serious blow as markets have plummeted. In these tough times, there is a bit of good news as the government has come...

read more

BUILDING A SAFETY NET – SMALL BUSINESSES RETIREMENT PLANS

By Andy Ives, CFP®, AIF® IRA Analyst By their nature, small businesses struggle in the shallows. Now they face a tsunami. However, when the shutters are removed and customers return and the employees are back on the payroll, normal day-to-day concerns will be a...

read more

SPLITTING IRAS AFTER THE SECURE ACT

By Ian Berger, JD IRA Analyst It’s common for IRA owners to leave their assets to multiple beneficiaries – for example, their children. Before the SECURE Act, it usually made sense to split the IRA into separate accounts either before or after death. That’s because...

read more

INHERITED IRAS AND QCDS: TODAY’S SLOTT REPORT MAILBAG

By Andy Ives, CFP®, AIF® IRA Analyst Question: A daughter who has been diagnosed with rheumatoid arthritis is listed as the beneficiary on her father’s Roth IRA.  Does this disease qualify as a “chronic illness” for purposes of the exception to the 10-year rule? Is...

read more

SELF-CERTIFICATION FOR MISSED 60-DAY ROLLOVERS

By Andy Ives, CFP®, AIF® IRA Analyst When a person takes a distribution from his IRA or workplace plan, he has 60 days from the day of receipt to redeposit (i.e., roll over) those dollars into another qualified account. This assumes no other disqualifying rollovers...

read more

APRIL 15 DEADLINE LOOMS TO CORRECT 2019 EXCESS PLAN DEFERRALS

By Ian Berger, JD IRA Analyst The amount of annual elective deferrals you can make to a 401(k) or 403(b) plan is limited by the tax code. If you discover that you’ve over-contributed in 2019, time is of the essence to correct the error. If you don’t act quickly, the...

read more

8 DAYS FOR 6 YEAR-END TRANSACTIONS

By Andy Ives, CFP®, AIF® IRA Analyst As of the writing of this Slott Report submission, it is Monday, December 23, 2019. T-minus 8 days before the end of the year, which means IRA owners have a tight window to complete any year-end transactions. Once the calendar...

read more

HELLO SECURE ACT, GOOD BYE STRETCH IRA

By Sarah Brenner, JD IRA Analyst With the clock ticking down on 2019, Congress is expected to enact a $1.4 trillion year-end spending bill to keep the government running. Tucked away inside this mammoth piece of legislation is the Setting Every Community Up for...

read more

FIVE QDRO Q&AS

By Ian Berger, JD IRA Analyst 1. What is a QDRO? A QDRO is a “qualified domestic relations order.” In plain English, it is a state court order obtained by divorcing parties that requires an ERISA plan to pay a portion of a participant’s benefit to the non-participant...

read more

QCDS AND INHERITED IRAS: TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD IRA Analyst Question: As year-end approaches, I have just exceeded my 2019 RMD, combining total QCD's during the year and my regular monthly IRA withdrawals. If I make additional charitable contributions from my IRA this month, are they still...

read more

GUNFIGHT AT THE 401(K) CORRAL

By Andy Ives, CFP®, AIF® IRA Analyst When the chips are down, the providers hold all the cards. This is true for both IRAs and workplace plans. Ultimately, the IRA custodian (through its custodial form) and retirement plan sponsor (through the plan document) will...

read more

Weekly Market Commentary

December 10th, 2019 Chadd Mason, CEO The Cabana Group Yet Again, the Market Focuses on What Matters - Interest Rates and Earnings After a rocky start to last week, U.S. equity markets rebounded and finished higher, led by Friday's 1% bounce in the S&P 500. The...

read more

HOW THE TOP-HEAVY RULES FOR 401(K) PLANS WORK

By Ian Berger, JD IRA Analyst Just like eating too much pumpkin pie with whipped cream isn’t good for your waistline, being a “top-heavy” retirement plan also may not be healthy. Sponsors of certain retirement savings plans must have their plan tested each year to...

read more

THANKSGIVING PARADE

By Andy Ives, CFP®, AIF® IRA Analyst The Macy’s Thanksgiving Day Parade is a river of sights and colors and sound. A snappy marching band flows to an army of volunteers clutching the ropes of a six-story inflatable SpongeBob, swaying in the wind. Flag bearers and...

read more

ACTIVE PARTICIPATION

By Andy Ives, CFP®, AIF® IRA Analyst Jenny earns a salary of $1,000,000. She is single and is not an active participant in a company retirement plan. Jenny can contribute $6,000 to a traditional IRA and deduct the full amount on her taxes. Benny, also unmarried, has a...

read more

WHY YOU SHOULD NOT CARE ABOUT THE ROTH IRA FIVE-YEAR RULES

By Sarah Brenner, JD IRA Analyst Roth IRAs first arrived over twenty years ago. A lot has changed since 1998. That was the year that Google was founded and an electronic pet called a Furby was one of the most popular Christmas gifts. However, some things haven’t...

read more

TEN QCD RULES FOR 2019 YOU NEED TO KNOW

By Sarah Brenner, JD IRA Analyst If you are charitably inclined and have an IRA, you might want to consider doing a Qualified Charitable Distribution (QCD) for 2019. The deadline for a 2019 QCD is fast approaching. It is December 31, 2019 and many custodians have even...

read more

QCDS AT THE STATE LEVEL

By Andy Ives, CFP®, AIF® IRA Analyst Earlier this month, a tax notification service released information declaring that “North Carolina Governor Roy Cooper signed legislation allowing an income exclusion for distributions from individual retirement accounts (IRAs) to...

read more

HOW THE 401(K) NONDISCRIMINATION RULES WORK – PART 2

By Ian Berger, JD IRA Analyst Many 401(k) plans must pass two annual nondiscrimination tests: the ADP test and the ACP test. The November 11 Slott Report discusses the ADP test. This Slott Report tackles the ACP test and the options available to 401(k) plans that fail...

read more

By Ian Berger, JD IRA Analyst If you participate in a 401(k) plan, you probably know about the annual limit on the amount of your deferrals (for 2019, $19,000, or $25,000 if over age 50). But if you are a high-paid employee, another limit may apply. Welcome to the IRS...

read more

MODERATION

By Andy Ives, CFP®, AIF® IRA Analyst Hypersensitivity to caffeine - this is my affliction. So much so that I limit myself to one energy drink per week. It must be opened before noon and should be nursed for a minimum of 90 minutes. Any violation could result in me...

read more

WHO SHOULD BE YOUR IRA BENEFICIARY?

By Sarah Brenner, JD IRA Analyst IRAs are for saving for retirement. However, as these accounts have grown over the years, many IRA owners still have significant funds in their IRA at their death. This means that estate planning for IRAs is essential. Effective estate...

read more

VESTING RULES FOR COMPANY PLANS

By Ian Berger, JD IRA Analyst If you’re thinking about leaving your job, you may want to inquire about your company retirement plan’s vesting schedule. If you are close to becoming vested in a retirement benefit, it may pay to stick it out until you have enough...

read more

THE 5-YEAR FOREVER CLOCK

By Andy Ives, CFP®, AIF® IRA Analyst Buckle your seatbelt and hang on to your hat. This ride could get bumpy. We are about to embark on a conversation that might give some readers vertigo or whiplash or all of the above. An article I wrote about the two 5-year clocks...

read more

SEVEN THINGS TO KNOW ABOUT SPOUSAL IRA CONTRIBUTIONS

By Sarah Brenner, JD IRA Analyst Many individuals find themselves stepping away from a job for reasons such as raising children or being a caregiver to aging parents. When this happens retirement savings can take a hit. That does not necessarily need to be case. You...

read more

ALL ABOUT ERISA

By Ian Berger, JD IRA Analyst Contrary to urban legend, ERISA does not stand for “Every Ridiculous Idea Since Adam.” Instead, it is an acronym for the Employee Retirement Income Security Act of 1974. ERISA is a federal law that regulates employer-sponsored retirement...

read more

CARRY THE BOX

By Andy Ives, CFP®, AIF® IRA Analyst My wife teaches elementary school kids. Been at it for years. Long enough to have former students visit her classroom as adults. She was put on this Earth to teach. Tough job, though. Even at this early age, and oftentimes through...

read more

THREE THINGS TO KNOW ABOUT THE YEAR OF DEATH RMD

By Sarah Brenner, JD IRA Analyst There are always questions that come up as to the correct way to handle the required minimum distribution (RMD) for the year of death of the IRA owner. Here are three things you need to know about the year of death RMD. 1. The RMD for...

read more

RETROACTIVE

By Andy Ives, CFP®, AIF® IRA Analyst Retroactive adjective ret·​ro·​ac·​tive | extending in scope or effect to a prior time or to conditions that existed or originated in the past; especially: made effective as of a date prior to enactment, promulgation, or...

read more

FOUR OCTOBER 15 DEADLINES YOU DON’T WANT TO MISS

By Sarah Brenner, JD IRA Analyst October is upon us. This means fall is in full swing. Along with football, pumpkin-spice everything and stocking up on candy for trick-or-treat come four important October 15 deadlines you will not want to miss! 1. Did you contribute...

read more

DOLLAR LIMITS WHEN PARTICIPATING IN TWO COMPANY PLANS

By Ian Berger, JD IRA Analyst Knowing your limits is important when you’re sitting in a bar and realize that you have to drive home. It’s also important to know the dollar limits that apply when you participate in more than one company retirement savings plan or you...

read more

HIGHWAY TO THE DANGER ZONE

By Andy Ives, CFP®, AIF® IRA Analyst My son is 14. I make every effort to expose him to a wide array of cultural elements. A variety of music. Plays. History. Food. Movies from the 80’s and 90’s are a significant slice of the “Understanding Social References” pie...

read more

EXCEPTIONS TO THE 10% PENALTY FOR BOTH IRAS AND COMPANY PLANS

By Sarah Brenner, JD IRA Analyst Retirement accounts are supposed to be for saving for retirement. If you tap your retirement savings before reaching age 59 ½, you run the risk of being hit with the 10% early distribution penalty. However, there are exceptions to this...

read more

A SHORT PRIMER ON DEFINED BENEFIT PLANS

By Ian Berger, JD IRA Analyst Like cassette tapes and slide rules, defined benefit (DB) plans are becoming relics of the past. It’s estimated that 88% of private sector employees with a company plan in 1975 were covered by a DB plan. Today, that number is less than...

read more

TOP 10 RMD GOOFS, GAFFES AND BLUNDERS

By Andy Ives, CFP®, AIF® IRA Analyst People stumble over themselves all the time. Bad advice is provided, misinformation gets freely disseminated, and sometimes normally smart individuals do less-than-smart things. Stories of good folks fouling up their required...

read more

QCDS AND ROTH CONVERSIONS: TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD IRA Analyst Question: Hello, I’ve been a follower of Ed’s expertise for over 10 years. The information has always been helpful and clearly explained. At this time, I’m looking to help a client minimize her taxes. She recently inherited an IRA from...

read more

RELIEF FOR JOINTLY SPONSORED RETIREMENT PLANS

By Ian Berger, JD IRA Analyst If you run a small company, you may be reluctant to offer a retirement plan to your employees because of the cost of plan administration and compliance. If so, you’re not alone: approximately 38 million American workers lack access to a...

read more

Ed Slott’s Elite IRA Advisor Group (Ed Slott Group) is a membership organization owned by Ed Slott and Company, LLC. Qualifying criteria for membership includes completing specified educational courses offered by Ed Slott Group. Ed Slott Group membership requirements include the payment of annual dues. Logos and/or trademarks are property of their respective owners and no endorsement of (Sean Stevens) or (Midwest Associates) is stated or implied. Ed Slott Group and Ed Slott and Company, LLC are not affiliated with Midwest Associates.

For the detailed requirements of Ed Slott’s Elite IRA Advisor Group, please visit: https://www.irahelp.com/EliteGroup

Securities and investment advisory services* offered through World Equity Group, Inc., member FINRA / SIPC., a Registered Investment Adviser
 
Check the background of this firm on FINRA’s BrokerCheck.