By Ian Berger, JD IRA Analyst Question: One of our clients wants to cash out his IRA and then roll it into a Roth IRA within 60 days. Can this be done directly, or does it have to be rolled back into an IRA first and then converted? Thanks, Samuel Answer: Hi Samuel, A...
KEY POINTS An improving economy has helped modestly improve the outlook for Social Security’s funds. But experts say the outlook for the program still points to the need for imminent reform. A new Social Security trustees report released Monday provides a modest...
By Andy Ives, CFP®, AIF® IRA Analyst When an IRA owner does a Roth conversion, there is typically a 5-year clock for the earnings on the converted dollars to be tax free. If a person already had a Roth IRA for 5 years AND is over 59 ½, there is no conversion...
By Ian Berger, JD IRA Analyst One of the more interesting rules (if any could be called “interesting”) from the 2022 IRS proposed regulations requires spouse beneficiaries in some situations to take RMDs (required minimum distributions) before doing a spousal...
-Darren Leavitt, CFA US financial markets were able to log another set of all-time highs as investors cheered a weaker-than-anticipated Consumer Price Index report that signaled more progress on the inflation front. The US Treasury market rallied nicely on the news...
By Andy Ives, CFP®, AIF® IRA Analyst QUESTION: Do required minimum distributions (RMDs) need to be taken when a non-spouse beneficiary inherits Roth IRA? It seems this has been a point of confusion for some time. ANSWER: This is something that confuses a lot of...
KEY POINTS From now until 2030, 30.4 million Americans are expected to turn 65. Women who are entering retirement now face more financial risks than their male counterparts, new research finds. The largest cohort of baby boomers is poised to reach age 65 between now...
By Sarah Brenner, JD Director of Retirement Education If you are charitably inclined and have an IRA, a Qualified Charitable Distribution (QCD) can be a great strategy. With a QCD, you can move IRA funds to the charity of your choice tax-free. Here are 12 QCD rules...
By Andy Ives, CFP®, AIF® IRA Analyst If I pour too much water into a glass, removing liquid from a different glass does not correct the problem. The excess water must be removed from the “offending” receptacle. Such is the case with excess IRA contributions. If too...
Planning for retirement is hard for many reasons, including the challenge of answering one key question: Just how long will I be retired? Knowing how much time you’ll have to enjoy your golden years is paramount to budgeting; after all, you can’t determine how much...
-Darren Leavitt, CFA The holiday-shortened week saw the S&P 500 hit its 34th record high this year. The NASDAQ 100 also eclipsed the 20k mark for the first time. Traders welcomed weaker-than-expected economic data that fostered the likelihood that the Federal...
By Ian Berger, JD IRA Analyst If you take a taxable withdrawal from your IRA or 401(k) (or other company plan) before age 59 ½, you normally have to pay a 10% penalty in addition to taxes. But Congress continues to carve out exceptions to this penalty, and there are...
By Sarah Brenner, JD Director of Retirement Education More and more Americans have retirement savings in Roth 401(k)s. With their rising popularity come some complicated tax issues. These funds are often rolled over to Roth IRAs at retirement or when a...
-Darren Leavitt, CFA Financial markets finished the 2nd quarter with a lack of conviction. Mega-caps led the market over the quarter with a 9.65% gain, while the equally weighted S&P 500 index declined by -2.42%, and the market weight S&P index gained 4.13%....
By Sarah Brenner, JD Director of Retirement Education Question: I have a question about the Roth IRA distribution ordering rules based on a client’s situation: 1. The client is 45 years old. 2. She has had a Roth IRA open for five plus years. 3. She made a $6,000...
By Andy Ives, CFP®, AIF® IRA Analyst You know the game “beer pong?” Arrange 6 or 10 cups in a triangle, fill each one with a couple of ounces whatever beverage you are enjoying, and your opponent tries to toss a ping-pong ball into one of the cups. If a throw is...
By Ian Berger, JDIRA Analyst A recent survey found that over 80% of 401(k) plans now offer employees the option of making Roth 401(k) employee contributions. More and more employees are now taking advantage of that opportunity. (In this article, I use the term “Roth...
-Darren Leavitt, CFA The holiday-shortened week saw the S&P 500 eclipse 5500 and hit its 31st all-time high of the year. Volumes were relatively light until Friday, when $5.5 trillion in derivatives expired and rolled in the next contract month. Several...
QUESTION: I attended the Mid-Year IRA Planning Opportunities 2024 Webinar on May 14th. I missed the reasons for not naming a trust as a beneficiary in an IRA. I know you can name a trust, but what would be the downside? Thank you, Victoria ANSWER: Victoria, There are...
By Ian Berger, JDIRA Analyst Question: Does a SIMPLE IRA owner who is over age 73 and still works for the same company that sponsors the SIMPLE IRA plan have to take an RMD (required minimum distribution)? He does not own any of the company. Answer: Yes. SIMPLE and...
