By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport My biggest gripe with legislation is the same complaint held by most – the bulk of it is written in legalese – i.e., difficult-to-understand language. I am no idiot, but sometimes I sure feel dumb...

Weekly Market Commentary - 10/6/2023 -Darren Leavitt, CFA Investors were treated to another mixed bag of market action as the yield curve steepened on the notion of higher rates for longer.  There were several central bank officials that echoed the need to perhaps...

A recent retiree shares lessons learned late about saving money and spending time Everyone nearing retirement has a vision of what their road will be like once they clock out of the 9-to-5. Maybe that prophecy includes regular travel, longer trips to see the...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport QUESTION: On September 6th in a piece titled, “Rules for Inherited IRAs that May Surprise Nonspouse Beneficiaries,” Sarah Brenner from Ed Slott and Company wrote, “If you inherited the IRA funds in...

By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Earlier in my career, I worked for a company that sponsored a defined benefit (DB) pension plan. Up to now, I’ve chosen to defer payments from the plan. A few weeks ago, I received an official-looking...

By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport SECURE 2.0 expands qualified charitable distributions (QCDs) by allowing a one-time only QCD of up to $50,000 to a split-interest entity. As a result of this new rule, there is now a...

Weekly Market Commentary - 9/29/2023 -Darren Leavitt, CFA Markets finished a difficult month of September with mixed results.  The prospect of a government shutdown, along with no real progress in the UAW negotiations and a recalibration of interest rate expectations,...

Take inventory of your assets and your strategy, or you could regret it later Reaching age 50 is a milestone that most of us celebrate. Still, after you’ve blown out the candles and bid farewell to your guests, you may have a headache from too much champagne, but...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport The Ed Slott team answers thousands of IRA and work plan questions annually - emails, phone calls, in-person conversations, webinars, Q&A programs and texts. We accommodate all members of the Ed...

Weekly Market Commentary - 9/22/2023 -Darren Leavitt, CFA US equity markets sold off in tandem with the US Treasury market as the Federal Reserve’s Open Market Committee meeting concluded with no change to its policy rate.  The Fed’s Summary of Economic Projections...

Take these write-offs on your 1040, even if you don’t itemize your return Doing your taxes is a hunt for ways to minimize your income: The lower your income, the less tax you pay. For most retirees and pre-retirees, this means taking the standard deduction and moving...

By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Question: I have a new inherited IRA, and I believe that I am subject to BOTH the 10-year rule and to annual RMDs. Is this true?   My situation:      Original owner was age 92 and passed in...

By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport If you are thinking of buying an NFT (non-fungible token) with your IRA funds, you may want to reconsider. In Notice 2023-27, the IRS said that NFTs associated with “collectibles” are prohibited IRA...

By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Maybe you made a Roth IRA contribution for 2022 and then discovered your income was too high. Maybe you contributed to a traditional IRA but later discovered that the contribution...

Weekly Market Commentary - 9/15/2023 -Darren Leavitt, CFA It was a roller coaster ride on Wall Street this week, with early-week gains met with a late-week sell-off.  Investors cheered the largest IPO of the year that saw Arm Holdings come to market 10x oversubscribed...

You don’t have to tell them some things, but others are very important You’ve probably taught your kids a whole bunch about money over the years, like how to stretch an allowance through an entire week and how to balance a debit account — or, most challenging of all,...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport Question: I understand that my kids will need to empty my Roth IRA in 10 years, but do they need to take RMDs in years 1 through 9? I am beyond my RMD age. Larry Answer: Larry, Assuming none of your...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport If ever I was traveling from Los Angeles to Atlanta, I would choose a direct flight with no layovers. I want the most efficient route to my destination. Point A to Point B. Take off, land. Assuming...

By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport The August 28, 2023 Slott Report summarized IRS Notice 2023-62, where the IRS delayed the effective date of the SECURE 2.0 rule requiring catch-up contributions by higher-paid older employees to be made on...

-Darren Leavitt, CFA The holiday-shortened week ended with losses for both US equities and Treasuries.  Apple shares tumbled on the news that the Chinese government would ban the use of the iPhone at government agencies at all levels of government.  The news comes in...

And 7 ways to make things easier for yours Have you found an executor (also known as a personal representative) to handle your affairs should you become incapacitated or die? Planning for death-related events isn’t fun, so you may be procrastinating. Or you may be...

By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Question: My name is Bruce. I am 65 years old, and I have a question about the SECURE Act. My mother died at age 89 on April 19, 2023, and I inherited her IRA. She had been receiving...

By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Many IRA assets will ultimately go to nonspouse beneficiaries. When these beneficiaries inherit the funds, special rules kick in. Inherited IRAs are not like your own personal IRA...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport   The lunacy of IRA beneficiary payout rules continues to boggle the mind. As I guide advisors through the options available to their clients, various nuances present one unique scenario after...

These stealthy cash drainers could be costing you big bucks Yes, you can save a lot by cutting out the little pleasures in life. Nonessentials like caffe lattes and premium channels can really add up. But life is too short for mediocre coffee! The good news is that...

By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Last Friday afternoon (August 25, 2023), the IRS gave employer plans two more years to comply with the controversial SECURE 2.0 rule requiring “catch-up contributions” for high-paid employees to be made on...

Weekly Market Commentary - 8/25/2023 -Darren Leavitt, CFA Financial markets were all over the place last week and ended with mixed results. The S&P 500 gained 0.8% and closed above 4400, a critical psychological level, but fell short of regaining the 50-day moving...

Facing an insecure financial future, America's 'neglected middle child' may have to chart a different path to post-work life For years, Mike Cundall Jr. thought he was on the proper path to retirement. A professor of philosophy at North Carolina A&T University,...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport QUESTION: Hello!  I recently came across one of your articles and decided to reach out to you in hopes of getting some clarification re: the Secure Act 2.0 and distributions as a qualified public...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport When an IRA or retirement plan owner reaches a particular age, that account owner typically must begin taking required minimum distributions (RMDs.) The RMD is calculated based on the year-end...

Weekly Market Commentary - 8/18/2023 -Darren Leavitt, CFA US equity markets fell for the third consecutive week.  The S&P 500 broke its 50-day moving average and then sank below 4400.  The sell-off has been on low volume, and the market may have been due to some...

Inflation, stock swings and more erode Americans’ confidence in future financial security When it comes to retirement readiness, many Americans are feeling disillusioned. A spring Gallup poll found that only 43 percent of nonretired adults expect to live out their...

By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Question: I am struggling to find an answer to my situation. My wife’s 82-year old father passed away about 8 years ago and he was taking IRA distributions. A portion of his IRA was...

By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport If you are subject to required minimum distributions (RMDs) and have annuitized part of your IRA, a recent law change could drastically reduce your RMDs. But, without IRS guidance, it may be difficult to...

By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport The IRS unleashed massive confusion last year. To the surprise of many, it released proposed SECURE Act regulations requiring beneficiaries (on some occasions) to take required...

-Darren Leavitt, CFA US Financial markets had another week of consolidation.  Equities and US Treasuries sold off in tandem on light volume.  An early week debt downgrade of 10 small to midsized banks and a notice that other downgrades may follow by Moody’s dampened...

By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Question: I’m age 76. My brother died in December 2022 at 84. Do I take required minimum distributions (RMDs) for the inherited account based on my age or on my brother’s age at death? Answer: Since you’re...

A little planning can ease the financial hardship You may not think a disaster can hit you, but a disaster of some sort can occur just about any place, at any time, with little or no warning. Garrett Sorensen knows that. His car was totaled when a powerful tornado hit...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport As already-complicated IRA rules spiral further into an abyss of confusion, it comes as no surprise that irregularities exist. Up is down and left is right. Green means stop, red means throw your...

By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport   If you’re facing the unpleasant prospect of paying college bills for the fall semester, you may be thinking of tapping into your retirement savings to help with the costs. If you’re under age 59 ½,...

Weekly Market Commentary - 8/4/2023 -Darren Leavitt, CFA Global equity markets fell last week as investors digested a full dose of Q2 earnings reports, a packed economic calendar, more central bank policy decisions, and Fitch's surprise downgrade of US sovereign debt....

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Question: Greetings, If I have the beneficiaries on my IRA listed as my wife (50%) and two children over 21 (50%), is my wife still able to move her half of the IRA into her existing IRA when I...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport   Are you thinking of naming a child or grandchild as your IRA beneficiary? With the start of the SECURE Act in January 2020, the rules for inherited IRAs were upended....

You may think that your big expenses in retirement will be for greens fees at golf clubs, spa charges at that resort in Crete, and taking the kids out for avocado toast on weekends. And that may well be true. But some of your biggest expenses may surprise you —...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport   There is no doubt we have written about this topic in past Slott Report entries. Possibly many times. There is also no doubt that people continue to make this same error, over and over...

Weekly Market Commentary - 7/28/2023 -Darren Leavitt, CFA It was a busy week on Wall Street with announcements of monetary policy decisions from the Federal Reserve, European Central Bank, and the Bank of Japan, along with an active calendar of Q2 earnings...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: I inherited an IRA in 2022 upon the passing of my father after he had already started his RMDs. I took a 2023 RMD from it in May 2023.  Your website says I’m not...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Is your child or grandchild working hard this summer? A summer job can be a valuable experience for a young person. Whether it is making smoothies, serving tables, or being a...

The Secure 2.0 Act of 2022 has several provisions that could significantly impact your retirement savings, and some of the most important ones are set to take effect in 2024. The legislation was designed to make it easier to save for retirement, streamline retirement...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport On July 17, we reported that the IRS had issued required minimum distribution (RMD) relief in two situations. First, the Service excused 2023 RMDs for certain IRA (and plan) beneficiaries subject to...

Weekly Market Commentary - 7/21/2023 -Darren Leavitt, CFA US financial markets were mixed last week as investors continued to dissect 2nd quarter earnings results and economic data. The notion of a soft landing in the economy resonated with investors even as global...

3 ways to ensure you’ll be able to afford your essential retirement expenses If your safe investments won't produce enough income to cover your "floor" expenses, the answer is to rethink and reduce your expenses. When you're young, you can't be too aggressive when...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: Hi, I have a question regarding solo 401(k)s. Does a solo 401(k) contribution affect the pro-rata rule when considering a backdoor Roth IRA? Best, James Answer: Hi James, No. 401(k) assets...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport We say in our training manuals that “the SECURE Act obliterates IRA trust planning.” That’s an aggressive word – “obliterates” – but it is accurate. We also shout from the mountain top that...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport   If you’re an IRA beneficiary subject to the 10-year payout period and would have had a 2023 RMD (required minimum distribution), you’re in luck. In Notice 2023-54 issued last Friday (July 14),...

Weekly Market Commentary - 7/14/2023 -Darren Leavitt, CFA US markets rallied on the notion that the economy may be able to execute a soft landing as inflation wanes and employment continues to hold up.  Inflation data reported during the week showed moderating prices...

Are you prepared for retirement? With longer life expectancy, rising healthcare costs, and the possibility of Social Security insolvency the pressure to prepare is mounting. To help you navigate the process, here’s an overview of the key factors you should consider...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport   QUESTION: Dear Mr. Slott, I have a client who, during 2022, was separated from employment, turned 55, and took a distribution from his former employer’s 401(k) account. We properly used...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport   You can have too much of a good thing. While it is a good strategy to contribute to an IRA, some contributions are not allowed. When a contribution is not permitted in...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Oftentimes with these articles, I compare certain retirement account rules to arbitrary items. A creative metaphor or simile can help the reader grasp a concept. For instance, past entries have...

Weekly Market Commentary - 7/7/2023 -Darren Leavitt, CFA The holiday-shortened week was discombobulated, to say the least. Trading desks on Wall Street were lightly staffed despite a full economic data calendar.   The start of the third quarter ushered in equity and...

These five steps will help you toward a safe, secure, and fun retirement Retirement planning is a multistep process that evolves over time. To have a comfortable, secure—and fun—retirement, you need to build the financial cushion that will fund it all. The fun part is...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: I believe we are all waiting for the IRS to issue rules related to distribution requirements (or not) for beneficiaries who are subject to the 10-year rule under the...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport In her June 28, 2023 Slott Report post, Sarah Brenner discussed several reasons why it pays to roll over your retirement plan savings to an IRA. Another option is to keep your funds in the plan. Keep...

Weekly Market Commentary - 6/30/2023 -Darren Leavitt, CFA Markets ended the month of June in strong form. Better-than-expected economic data for the week showed a resilient economy and inflation moderating. Investors were dismissive of hawkish commentary from ECB...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: Ed Slott and Team, I am 73 and a retired financial planner. I would like to do a partial withdrawal from my 403(b) and do a 60-day rollover back into the same 403(b)....

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport If you are like most American workers, you will change jobs many times during your lifetime. With a job change, you will have a decision to make. What should you do with the...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport   When an IRA owner dies, we look to the beneficiary form to determine who should receive the IRA funds. After death, there is a transition process as assets are moved into an inherited...

When you retire, you leave behind many things—the daily grind, commuting, maybe your old home—but one thing you keep is a tax bill. In fact, income taxes can be your single largest expense in retirement. Taxation of Social Security Benefits Many older Americans are...

-Darren Leavitt, CFA US equity markets tapped on the brakes with modest losses across the board.  The notion that higher rates will further dampen global economic growth gave investors reason to take some profits.  Economic data painted a resilient economy but...

Planning to retire in 10 years or less? Find out what you need to know and do for a smoother transition. If you're thinking of retiring within the next 10 years, you may feel like you're confronting quite a few "what ifs" and unknowns. "Many retirees say transitioning...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: Hello, I am involved with a traditional non-spouse inherited IRA that was passed from my mother to myself and two siblings in 2022. My mother was 84 when she passed and was taking RMDs. I...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Some of you are aware that there are two types of section 457(b) retirement plans – governmental plans for state and local municipal workers, and “top hat” plans for highly-paid and managerial...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport June is Pride Month. While celebrating, same-sex couples may want to take this opportunity to consider plans for their retirement accounts. Since the SECURE Act and SECURE 2.0...

Weekly Market Commentary - 6/16/2023 -Darren Leavitt, CFA US equity markets continued to impress with another set of weekly gains. The mega-cap issues retook the lead, while small-cap issues lagged. Global central bank policy was top of mind for investors who received...

KEY POINTS Today’s workers are tasked with making sure they will have enough money when they retire while also juggling competing financial priorities. While planning for retirement may seem daunting, experts say there are strategic moves you can make to improve your...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport   Question: I have a large amount of stock from a previous employer in my 401(k).  I had been reinvesting the dividends for the last 23 years since I left the company.  I no longer want to...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport A couple of years ago I was asked what the tax consequences are when a Roth IRA is split in divorce. After a pause, I answered honestly: “I have no idea…but will find out.” In fact, there is no...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Although the U.S. divorce rate is in a steady decline, it’s still one of the highest in the world. And with divorces often come QDROs – “qualified domestic relations orders.” A QDRO is a state court...

Weekly Market Commentary - 6/9/2023 -Darren Leavitt, CFA The S&P 500 entered a new bull market, increasing 20% off the October lows. The move came with broader participation outside the mega-cap technology issues, responsible for most of the market’s performance...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: I inherited an IRA from my brother back in 2019. I have been taking required distributions from it each year. Can I do a qualified charitable distribution from this...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Probably the biggest advantage that a spouse beneficiary of an IRA has over other beneficiaries is the ability to do a spousal rollover. Only a spouse beneficiary can do a...

Average life expectancy has risen by 16 years since the national retirement age was set at 65. We asked health experts when they think people should stop working now. In 1881, the conservative German Chancellor Otto von Bismarck, plagued by a rise in socialist...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport For deaths in 2020 or later, we know that a non-eligible designated beneficiary (NEDB) of an IRA is subject to the 10-year rule. Meaning, the account must be emptied by the end of the tenth...

Weekly Market Commentary - 6/2/2023 -Darren Leavitt, CFA Investors enjoyed an excellent week of gains in US equity markets. Washington finally got a debt ceiling deal through Congress and onto President Biden’s desk. On the margin, it appears that the Republicans came...

There’s no denying that recessions are harsh. They bring about business failures, job losses, and economic downturns. If you are close to retirement you have likely wondered if a recession is coming and exactly happens during a recession. This comprehensive guide will...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport Question: If a 76-year-old is working full time and has a SIMPLE IRA and she does not own any of the company that sponsors the SIMPLE IRA, does she still have to take a RMD (required minimum...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport It looks like IRA owners will probably have to wait awhile to take advantage of a new program that allows them to self-correct IRA errors that previously couldn’t be fixed. In Notice 2023-43, the IRS...

Weekly Market Commentary - 5/26/2023 -Darren Leavitt, CFA As investors awaited news from the debt ceiling negotiations, markets continued to ebb and flow.  The S&P 500 continued to trade range-bound, oscillating between 4100 and 4200.  Fed rhetoric continued to...

Key takeaways Like a good financial plan, insurance takes into account your goals and current financial situation and should evolve as your life changes. In addition to income replacement, life insurance, in particular, can help diversify your portfolio, protect...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport Question: In 2021, my wife inherited an IRA from her sister who was 4 years younger.  My wife therefore is an EDB (eligible designated beneficiary). Her sister was 66 years old at date of...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport I got into some poison ivy and am suffering the consequences. It takes a few days for the welts to appear, but they are in full bloom. While I did take precautions before starting my yardwork...

By Ian Berger, JD IRA Analyst Follow Us on Twitter: @theslottreport The “once-per-year” rollover rule is one of those IRA rules that has serious tax consequences and cannot be fixed if violated. Breaking the rule results in a taxable distribution and a 10% early...

Weekly Market Commentary - 5/19/2023 -Darren Leavitt, CFA Investors were treated to a week of gains for US indices, while US Treasuries fell significantly across the curve. Early in the week, there was cautious optimism around debt ceiling negotiations as both sides...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport Question: Hello and thank you for all the great, helpful information you continue to send out. I am due to take my first RMD (required minimum distribution) in 2024 which would...

Annuities offer powerful tax benefits to those planning for, or entering retirement. Unlike money market accounts, savings accounts, certificate of deposit (CDs), and most bonds, annuities carry the potential to create tax-deferred accumulation. For example, interest...

By Sarah Brenner, JD Director of Retirement Education Follow Us on Twitter: @theslottreport   You have likely heard of Health Savings Accounts (HSAs), and you may even understand the basics of how an HSA works. These accounts are really not too complicated. If...

By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on Twitter: @theslottreport QUESTION: Do required minimum distributions (RMDs) apply to inherited Roth IRAs? ANSWER: It depends on who the beneficiary is. Owners of traditional IRAs must start taking RMDs when they reach...

Weekly Market Commentary - 5/12/2023 -Darren Leavitt, CFA US equity and fixed-income markets continued to trade in a tight range. 4100 proved to be support for the S&P 500, while the US 10-year note yield oscillated around 3.46%. Cyclical issues were under...

Fixed indexed annuities (FIAs) have grown in popularity over the years, primarily due to their unique combination of safety, growth potential, and guaranteed income streams. In this people-first guide, we’ll explore the benefits of fixed-indexed annuities, how they...