By Sarah Brenner, JD Director of Retirement Education Question: Can an RMD from an inherited IRA be taken out of your own traditional IRA? Jack Answer: Hi Jack, Aggregation of required minimum distributions (RMDs) can be complicated and we get a lot of questions on...

In 2007, at age 52, I was forced to retire overnight. An MRI had revealed a tumor, the size of a large eggplant, sitting on my pelvis. In 98% of these cases, my oncologist told me, bone tumors are secondary cancer. He estimated that I had about six months to live. But...

By Andy Ives, CFP®, AIF® IRA Analyst When moving retirement money from IRA to IRA, or from a workplace retirement plan like a 401(k) to an IRA, there are essentially three methods to relocate those dollars. Two of them are similar, and the third opens all kinds of...

Weekly Market Commentary - 7/22/2022 -Darren Leavitt, CFA US financial markets rallied over the week despite increasing economic growth concerns. A very weak BofA Fund Manager Survey validated a sense that some, if not most, of the coming economic weakness has been...

By Ian Berger, JD IRA Analyst Question: I have just read as many questions and answers as I could on The Slott Report and am still very confused.  Simply put, I am over 80 years old, and I have had a Roth and a traditional IRA for many years.  My daughter is the sole...

Prepare for the monetary shock of widowhood When you lose your mate, you lose so much—your best friend, your equilibrium, your future together. And just when you’re at your lowest, it hits you: You could lose a lot of money, too. Your finances may crash in myriad ways...

By Sarah Brenner, JD Director of Retirement Education Back in 2020 when COVID first became our new reality, Congress enacted the CARES Act. The CARES Act allowed qualified individuals who were affected by COVID to take penalty-free distributions from their retirement...

By Ian Berger, JD IRA Analyst Like most everything else these days, the price for receiving an IRS private letter ruling (PLR) has recently gone up. A person will request a PLR to receive the IRS’s blessing that a specific tax transaction won’t violate the tax code or...

Weekly Market Commentary - 7/15/2022 -Darren Leavitt, CFA It was an extremely busy week on Wall Street with a full calendar of economic data and the start of 2nd quarter earnings. Growth concerns fostered more selling in equities and commodities while the long tenures...

Thinking about retiring? The keys to contentment are at your fingertips Some might say that an ideal retirement would find you waking up in a private Mediterranean villa on a mattress made of freshly ironed $100 bills. And it's true: Money is a big part of a happy...

By Andy Ives, CFP®, AIF® IRA Analyst Question: Is there a required minimum distribution (RMD) on a self-directed IRA? Answer: A “self-directed IRA” is nothing more than an IRA that invests in unconventional items that not all custodians will handle – like maybe crypto...

By Andy Ives, CFP®, AIF® IRA Analyst Conduit IRAs, sometimes called “rollover IRAs,” typically contained only money rolled over from a company plan - and subsequent earnings on those dollars. But a 2001 tax law (Economic Growth and Tax Relief Reconciliation Act of...

By Sarah Brenner, JD Director of Retirement Education A Qualified Charitable Distribution (QCD) is a way for you to move funds out of your IRA to a qualifying charity income-tax free. If you are thinking this might be a good strategy for you, here are 4 QCD rules that...

Weekly Market Commentary - 7/8/2022 -Darren Leavitt, CFA The holiday-shortened week saw the US stock market bounce while US Treasuries gave up the bulk of their prior weeks' gains. Economic data was highlighted by the June Employment Situation report that showed...

Caregivers can play a key role in keeping criminals at bay It’s a sad fact of life: Criminals target older Americans for fraud. Many older folks have nest eggs. Cybersecurity is not their second language. They came of age during more trusting times. And they may be...

By Ian Berger, JD IRA Analyst Proposals to boost IRA and workplace plan savings are advancing, but they are not law yet. Several actions must occur before the proposals become law. On March 29, the House passed the “Securing a Strong Retirement Act of 2022.” Now, two...

By Sarah Brenner, JD Director of Retirement Education Question: Dear Sirs: I inherited a regular IRA upon my mother's death in 2015. I am now 75 years old and have been taking required distributions since then. She was taking distributions herself when she died. My...

By Ian Berger, JD Director of Retirement Education Should I Accept a Lump Sum Buyout Offer? With economic uncertainty increasing, more companies with defined benefit (DB) pension plans will likely attempt to improve their bottom line by offering lump sum buyouts. A...

Weekly Market Commentary - 7/1/2022 -Darren Leavitt, CFA Markets took a step back after the prior week’s impressive rally. The same culprits showed up to dampen investors’ appetite for risk assets- growth concerns, inflation, and hawkish central bank rhetoric....

Monthly Commentary - June '22 -Darren Leavitt, CFA It was just an ugly month of June for investors and for that matter the 1st half of 2022.  All asset classes seemed to fall except for the US dollar.  The month started with a “peak inflation” narrative that was...

By Ian Berger, JD IRA Analyst Question: I am 66 and would like to convert one of my IRAs to a Roth, but I am not sure if any of my old IRA accounts have any after-tax contributions. I have no records, so I assume they are all pre-tax but I am not sure. If I convert...

By Andy Ives, CFP®, AIF® IRA Analyst Over the past couple of months I have been tasked with the unfortunate responsibility of helping my mother sort through her financial affairs after the death of her spouse. My dad passed in March, and it has been a steady stream of...

Steep rises in energy, housing, food WASHINGTON — Inflation soared over the past year at its fastest pace in more than 40 years, with costs for food, gasoline, housing and other necessities squeezing American consumers and wiping out the pay raises that many people...

By Sarah Brenner Director of Retirement Education You may have heard how converting to a Roth IRA is a great move for younger people. This is no surprise. A younger person who converts has two big factors working in her favor. She may pay taxes on a smaller IRA...

Weekly Market Commentary - 6/24/2022 -Darren Leavitt, CFA In a holiday-shortened week, financial markets bounced out of extreme oversold conditions.  Mega-cap growth stocks outperformed value issues, mid-caps, and small caps.  The Fed Chairman was on the hill in front...

By Andy Ives, CFP®, AIF® IRA Analyst Question: Hi Ed, I’m 66 Years old. Less than a year ago I converted into my Roth from my traditional IRA with the intention of parking it there until I could finalize the details of a summer house purchase. I know I have taxes to...

Economic downturns are inevitable. Here's how to protect your retirement nest egg Sooner or later, the economy will fall into a recession, because that’s the nature of the economy: Busts follow booms. For many retirees, the biggest challenge is the investment...

By Andy Ives, CFP®, AIF® IRA Analyst The 72(t) rules (”series of substantially equal periodic payments”) allow a person to tap retirement dollars before 59½ without a 10% early distribution penalty. However, to gain this early access, you must commit to a plan of...

Weekly Market Commentary - 6/17/2022 -Darren Leavitt, CFA Investors sent global markets lower on recession fears induced by tighter central bank policies. The Federal Reserve announced that they would raise their policy rate by 75 basis points to a target of 1.50% to...

IRS tax code offers perks to taxpayers of a certain age If you’re 50 or older, there is one benefit to reaching this milestone that you may be overlooking: tax breaks aimed right at you. Now you can contribute more to your Roth or traditional individual retirement...

By Sarah Brenner Director of Retirement Education Question: Ed, My mother passed away in May 2019, and I inherited her IRA.  She had not completed her RMD for 2019, so I did that. In 2020, I began my RMDs based on the Single Life Table for Inherited IRAs. Since I...

By Sarah Brenner Director of Retirement Education If you inherit an IRA, especially if it is a larger one, you may be afraid of being stuck with the five-year distribution rule. If this rule applies, your IRA must be entirely emptied in five years, which can be a...

By Ian Berger, JD IRA Analyst Those of you who participate in 401(k) plans or certain 403(b) plans should see something new on your next quarterly statement for the period ending June 30, 2022. For the first time, the statements must include illustrations of the...

Weekly Market Commentary -6/10/2022 -Darren Leavitt, CFA Global growth concerns were raised throughout the week on multiple fronts. Central bank policy from the Eurozone, India, and Australia promoted tighter monetary policy. Higher fuel prices stoked fears of...

Social Security retirement benefits are primarily based on two factors: your average income over your working life and your age when you claim them. You get to decide when to start collecting benefits, within an eight-year window from age 62 to age 70. The longer you...

By Ian Berger, JD IRA Analyst Question: Good Day, I have a client (age 65) who inherited a traditional IRA from her mother in 2020. I know that she must empty the account by 12/31/30. She is not an eligible designated beneficiary (EDB). I’m trying to calculate the...

By Andy Ives, CFP®, AIF® IRA Analyst SCENARIO: John owns multiple Roth IRAs. He believes it is necessary to maintain all these accounts to keep things properly organized and to track his 5-year conversion clocks. He has contributed to Roth IRA #1 for over a decade. He...

By Sarah Brenner, JD Director of Retirement Education You can have too much of a good thing. While saving for retirement with an IRA is a good strategy, there are limits.  When a contribution is not permitted in an IRA, it is an excess contribution and needs to be...

Weekly Market Commentary -6/3/2022 -Darren Leavitt, CFA Wall Street ended lower for the week as investors heard more hawkish rhetoric from Fed officials and economic warnings from two prominent CEOs.  The holiday-shortened week produced another tranche of mixed Q1...

How to get control of what you owe For Gail and Tony Dean, the crisis came as they approached 50. Living in South Florida, they decided to move north, near Orlando, where they bought land and began to build their dream home. Then the debts piled up. The couple — she...

By Andy Ives, CFP®, AIF® IRA Analyst Question: As we did 2 years ago, will we be able to skip taking a 2022 required minimum distribution (RMD) without penalties? Answer: Sorry, but RMDs are in full effect for 2022. The CARES Act waived RMDs in 2020, but that was a...

By Ian Berger, JD IRA Analyst Usually, rollovers involving 401(k) accounts and IRAs involve moving dollars from a plan to an IRA. But sometimes it makes sense to instead do a “reverse rollover” – from an IRA to a 401(k). Let’s get some bad news out of the way:...

Weekly Market Commentary -5/27/2022 -Darren Leavitt, CFA Happy Memorial Day, and thank you to all that have served our great country. Global financial markets rallied as buy the dip investors finally showed up on Wall Street. US Markets were especially strong after...

By Sarah Brenner, JD Director of Retirement Education Question: I am 79 and make SEP-IRA withdrawals annually as required. I also have several regular (non-IRA) accounts. One fund I own throws off tremendous taxable capital gains every year. Is there any way I can...

5 things loved ones will have to do to settle your accounts How many times have you told your loved ones that you don’t want to be a burden, and saddle them with a financial mess at the end of your life? It’s a common sentiment. Despite their good intentions, however,...

By Sarah Brenner, JD Director of Retirement Education Why is it so important to know how the once-per-year rollover rule works? Well, that is because trouble with the once-per year rule is the kind of trouble no one wants! An IRA owner who violates this rule is...

Weekly Market Commentary -5/20/2022 -Darren Leavitt, CFA US markets continued to sell off while developed international and emerging markets traded higher. Disappointing Q1 earnings results from the retailers cast some doubt on the health of the US consumer and...

By Ian Berger, JD IRA Analyst Question: Hi, I am age 50 and am targeting retirement at age 55. My current employer is selling the division I work for, and I see the potential that I could be laid off at, say, 52. If this were to happen, could I join a new employer...

By Ian Berger, JD IRA Analyst Employees leaving their jobs are often surprised to discover they aren’t entitled to the full balance of their company plan account. The reason is that some plans impose a vesting rule on certain types of contributions. What do the...

By Andy Ives, CFP®, AIF® IRA Analyst Last week in Kansas City, the Ed Slott team hosted our first in-person training program for members of our Elite Advisor Group since late 2019. While we managed to stay in contact with everyone via virtual meetings for the last two...

By Andy Ives, CFP®, AIF® IRA Analyst Question: I have a 401(k) that I'd like to use a portion for a QCD. I understand that QCD's have to be from an IRA. Can I move a portion to an IRA for the QCD? How will this affect my RMD from my 401(k)? Federal tax implications?...

By Sarah Brenner, JD Director of Retirement Education The real estate market is red hot right now. This can be especially challenging for first time home buyers. IRA savings are intended to be used for your retirement. However, if you are like many others, your IRA...

The answer: $1,000 more than you could in 2021 A 401(k) plan is a great way to increase your retirement savings. Your employer will deduct your pretax contributions from your paycheck, and your savings will be tax-deferred until you take withdrawals during retirement....

For many financial documents, just 3 years — for others, practically forever You may be starting at a heap of paperwork when you finish filing your 2021 federal taxes, which are due April 18. Your first urge may be to sweep them all into a paper bag and put the bag...

Weekly Market Commentary -5/13/2022 -Darren Leavitt, CFA Investors endured another tough week as financial markets continued to digest robust inflation data, mixed Q1 earnings, and fears that global growth will continue to slow. Economic data was centered on the...

By Ian Berger, JD IRA Analyst Just when we thought we understood the new IRS regulations on required minimum distributions (RMDs), here comes more uncertainty. As we have reported, the IRS threw everyone a curveball with its interpretation of the 10-year payout rule...

Weekly Market Commentary -5/6/2022 -Darren Leavitt, CFA It was an extremely busy and volatile week on Wall Street.  The Federal Reserve's May FOMC meeting statement was top of mind for investors and came in as expected.  However, post statement Q&A added some...

You'll get better savings rates but higher borrowing costs this year The Federal Reserve is raising borrowing costs to cool the hottest inflation readings in 40 years. The Fed on Wednesday hiked its key short-term fed funds rate to a range of 0.75 to 1 percent, the...

By Sarah Brenner, JD Director of Retirement Education Question: I am 75 years old and contributing to my company’s 401(K) plan. I have not taken an RMD from my 401(K) utilizing the “still-working exception.” I just retired on April 30, 2022. My question is: Do I have...

By Andy Ives, CFP®, AIF® IRA Analyst Qualified charitable distributions (QCDs) continue to gain popularity, and with that popularity comes more questions. Here are a dozen QCD facts that will keep you on the straight-and-narrow with your QCD transactions: 1. QCDs are...

By Sarah Brenner, JD Director of Retirement Education Recently, Fidelity investments made headlines by announcing that it would allow retirement savers to put Bitcoin in their 401(k)s. Cryptocurrency has been all over the news, and you may be wondering if it would be...

Monthly Market Commentary – April ’22 -Darren Leavitt, CFA Global financial markets had a rough month in April. Inflation continued to be top of mind for investors as data continued to show historic increases in prices. The Federal Reserve still appears to be behind...

Weekly Monthly Commentary - April '22 -Darren Leavitt, CFA Global financial markets had a rough month in April. Inflation continued to be top of mind for investors as data continued to show historic increases in prices. The Federal Reserve still appears to be behind...

There are probably thousands of articles published every day on how and why to eat well and exercise. And yes, these are critical endeavors for healthy aging. But, they don’t cover everything you need to do to live your best life for as long as possible. What might be...

By Andy Ives, CFP®, AIF® IRA Analyst Question: I’m 68 years old. I would like to start IRA withdrawals. What are the rules for withdrawing before my RMDs are required at age 72? Thanks, Bob Answer: Bob, There are no limitations to withdrawing your IRA before RMDs...

By Ian Berger, JD IRA Analyst There are three types of company savings plans: 401(k) plans if you work for a for-profit company; 403(b) plans if you work for a tax-exempt employer, a public school or a church; and 457(b) plans if you work for a state or local...

By Andy Ives, CFP®, AIF® IRA Analyst For those who have 401(k)s or other employee retirement plans (but not SEP or SIMPLE plans), the required beginning date (RBD) for when required minimum distributions (RMDs) are to begin is the same as for IRA owners – April 1 of...

Weekly Market Commentary -4/22/2022 -Darren Leavitt, CFA Financial asset classes had a tough week as global growth concerns were stoked by more hawkish commentary from Fed Presidents and mixed earnings results from corporate America. Economic data showed mixed results...

Benefits are going up, but so are the Medicare premiums deducted from monthly checks Social Security beneficiaries will have a lot to cheer about in 2022 — but they may have a few things to grouse about as well. Here’s a rundown of what will change for Social Security...

By Ian Berger, JD IRA Analyst Question: Hello, I’m learning a lot from Ed Slott’s latest book, “The New Retirement Savings Time Bomb,” but I do have a question on 401(k) Roth IRA conversions. I’m recently retired with a company 401(k). I’m leaning towards keeping the...

By Sarah Brenner, JD Director of Retirement Education For IRA-to-IRA or Roth-to-Roth 60-day rollovers, the same property received is the property that must be rolled over. These rules also apply to SIMPLE and SEP IRAs. You cannot receive a distribution of cash and...

By Ian Berger, JD IRA Analyst Tax Day 2022 seems like an appropriate time to review a sometimes-overlooked way to get extra dollars into your IRA or company savings plan. Folks age 50 or older are allowed to make “catch-up” contributions with no strings attached....

Weekly Market Commentary -4/15/2022 -Darren Leavitt, CFA First-quarter earnings season kicked off with mixed results from the financials and positive results from the airlines. The holiday-shortened week found US equities taking one step forward only to subsequently...

Making a retirement plan requires more knowledge than you might think. You'll need to understand how inflation affects your investment account; how much income Social Security provides, and how much you need to subsidize it; and how much you can withdraw from...

By Sarah Brenner, JD Director of Retirement Education Question: Hello, Client (72) has recently inherited a “Beneficiary IRA” account. My question is for next year:  Can she use qualified charitable distributions for her beneficiary IRA? Thank you, Kathy Answer: Hi...

By Andy Ives, CFP®, AIF® IRA Analyst The deadline for filing your 2021 tax return is this Monday, April 18. It is extended through the weekend because IRS offices in Washington DC are closed on Friday, April 15, in observance of the locally recognized Emancipation...

By Sarah Brenner, JD Director of Retirement Education The SECURE Act was signed into law in late December of 2019. This new law upended the rules for retirement accounts. With it came many questions, and IRS guidance was eagerly anticipated. Finally, on February 23,...

Weekly Market Commentary -4/8/2022 -Darren Leavitt, CFA Fed rhetoric sent yields higher across the curve, with longer duration Treasuries taking the brunt of the sell-off. Higher yields pressured growth stocks and favored defensive sectors such as the Utilities,...

By Andy Ives, CFP®, AIF® IRA Analyst Question: I have a non-spousal inherited IRA account.  Once I take out my RMD for the year, am I able to take out excess funds and roll those into a Roth account? Thank you. Answer: Inherited IRA accounts do not follow all the same...

By Ian Berger, JD IRA Analyst A bill designed to increase savings in IRAs and company plans has passed the House of Representatives, but it’s not yet law. The bill is officially called the “Securing a Strong Retirement Act of 2022,” but many are calling it “SECURE...

Fixed index annuities can help you accumulate money for retirement and provide guaranteed income after you retire. A fixed index annuity may be a good choice if you want the opportunity to earn indexed interest, but don’t want to risk losing money in the market. What...

By Andy Ives, CFP®, AIF® IRA Analyst The new SECURE Act regulations, released in late February, created a firestorm of confusion and complexity. We have addressed concerns in recent Slott Report articles and will continue to do so as issues arise. However, as of now,...

By Ian Berger, JD IRA Analyst Question: Hi, I have a client that needs funds for a short period of time, so he plans to use the 60-day rollover rule to borrow money from his IRA and return it within 60 days. He has a Traditional IRA and a Roth IRA. He is under the...

Purchasing life insurance is a big deal. If you want to be sure your family is covered if something happens to you, choosing the right policy is imperative. Whether you’re looking for the average policy cost or more in-depth knowledge, such as the largest life...

By Sarah Brenner, JD Director of Retirement Education Most IRA distributions will be taxable. However, if you have ever made nondeductible contributions to your IRA or rolled over after-tax funds from your company plan to your IRA, then the rules can get a little bit...

By Ian Berger, JD IRA Analyst When you file for bankruptcy, one thing you usually don’t have to worry about is protecting your IRA funds from creditors. That’s because, in just about every case, all of your IRA (and Roth IRA) monies are off limits. Under the federal...

Weekly Market Commentary -3/25/2022 -Darren Leavitt, CFA It was a hectic week for investors as US financial markets tried to post a second consecutive week of gains. Geopolitics continued to influence market action. President Biden traveled to Europe to meet with NATO...

By Sarah Brenner, JD Director of Retirement Education Question: I established a Roth IRA in 2011 and needed to withdraw $ 30,000 in 2021 to pay for my daughter’s first year of college tuition. I am under 59 1/12 and the 1099-R has a code of J meaning early...

It hasn’t been an easy couple of months for savers. At the height of the pandemic in April 2020, Americans’ personal savings rate – the portion of monthly income that households are socking away – hit a record 33.8%. Now that rate hovers around 6.4%, which is below...

By Andy Ives, CFP®, AIF® IRA Analyst Here we go again. In my March 14 Slott Report entry (“Monitoring Concurrent Life Expectancies? – SMH”), I railed against the IRS for a seemingly pointless rule in the new SECURE Act regulations directed at elderly IRA...

By Sarah Brenner, JD Director of Retirement Education It may be hard to believe it but the countdown to the 2021 tax filing deadline is on. The deadline is April 18, 2022, for most filers. That is really only a few weeks away. Time is running out. Is your IRA ready?...

Weekly Market Commentary -3/18/2022 -Darren Leavitt, CFA Global financial markets registered significant gains for the week. Investors continued to watch for any progress on negotiations between Russia and Ukraine. Central bank policy came in as expected, which helped...

Changes in contribution limits, taxes, Social Security benefits, Medicare premiums and more We all get sentimental from time to time, but unless you hit the lottery or found true love, you probably won't be looking back on 2021 all too fondly. The COVID-19 pandemic is...

By Andy Ives, CFP®, AIF® IRA Analyst Question: Hey Ed- Long time reader and listener of yours…and have bought a few copies of your latest book to share with clients! Prior to us being involved, my client made a Backdoor Roth contribution in 2021. He did this despite...

By Ian Berger, JD IRA Analyst With many 401(k) (and 403(b) and 457(b) plans) offering multiple participant accounts, your plan statement is probably more complicated than ever. Here’s a brief primer to help you understand what each account represents: Pre-tax deferral...

By Andy Ives, CFP®, AIF® IRA Analyst I am usually patient with the IRS. I understand the massive workload they have, and there are tax cheats lurking around every corner. The IRS does its best to ensure no loopholes exist for bad actors to circumvent tax laws to avoid...

Weekly Market Commentary -3/11/2022 -Darren Leavitt, CFA Investors started the week facing $130 a barrel crude as the US announced an embargo on Russian oil.  Europe also announced that they would begin to taper their dependence on Russian energy, albeit a process...

What You Need to Know The government is confusing. Stock market gains are high, for now. The Secure Act is turning employer-sponsored retirement plans into income-planning educators. Have you ever experienced the solution to a problem being in plain sight, only to...

By Ian Berger, JD IRA Analyst Question: Ed, I read your 2/28/22 Slott Report on the updated SECURE Act information for non-eligible designated beneficiaries (non-EDBs) that requires annual RMDs to continue if the original owner was taking them prior to his death and...

By Sarah Brenner, JD Director of Retirement Education Roth IRAs have always been a great retirement savings tool. While pre-tax retirement accounts allow tax deferred savings, a Roth IRA promises tax-free benefits. They allow you to receive years of earnings in...