Hope is
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Weekly Newsletter
“Third-party Posts”
Weekly Market Commentary
-Darren Leavitt, CFA US financial markets inked another week of gains as investors cheered what they heard from global central bankers at the Jackson Hole Economic Symposium. In fact, the bulk of the gains were made on Friday after Fed Chairman Jerome Powell...
Weekly Market Commentary
US financial markets inked another week of gains as investors cheered what they heard from global central bankers at the Jackson Hole Economic Symposium. In fact, the bulk of the gains were made on Friday after Fed Chairman Jerome Powell solidified the prospect of a...
7 Things to Know About Working While Getting Social Security
If you claim benefits early, income from work can reduce your monthly payments “Retirement” used to be synonymous with “not working.” Not anymore. More than a quarter of U.S. adults ages 65 to 74 are still in the workforce, according to the federal Bureau of Labor...
Weekly Market Commentary
-Darren Leavitt, CFA Markets reversed course last week as investors reassessed the economic narrative of a recession. Better-than-expected inflation data, alongside a robust reading of Retail Sales and a pullback on Initial Jobless Claims, tempered fears of a severe...
How Will the 2024 Election Impact Your Retirement?
Investors should expect volatility but also try not to overreact to news. To prepare, focus now on tax minimization, protecting your portfolio and more. In times of great change, it is only natural for people to wonder and worry. Without perspective, it morphs into...
Weekly Market Commentary
-Darren Leavitt, CFA Wow, what a week for global financial markets. A rollercoaster ride for investors continued throughout the week as multiple narratives ricocheted off prior expectations. Crowded trades coupled with weaker-than-expected economic data in the prior...
‘What Does Retirement Even Look Like?’
For older parents of adult children with disabilities, focus stays on caring for kids Jeanne Piorkowski looks forward to having more time in retirement to navigate the dense bureaucracy of forms, benefits and programs she can already rattle off like an expert. But she...
A PHILOSOPHICAL SLOTT REPORT ENTRY
By Andy Ives, CFP®, AIF® IRA Analyst Trapped. For two nights in July, I slept on the floor at Atlanta Hartsfield International Airport – a victim of the mass Delta computer outage. Booking a hotel after midnight (when the final cancellation hit) was not worth the...
IRS FINAL REGULATIONS LOOSEN DEFINITION OF “ELIGIBLE DESIGNATED BENEFICIARY”
By Ian Berger, JD IRA Analyst One of the positive outcomes of the new IRS final SECURE Act regulations on required minimum distributions (RMDs), released on July 18, is that more beneficiaries will be able to stretch RMDs over their lifetime. Under the 2020 SECURE...
Weekly Market Commentary
-Darren Leavitt, CFA Last week, markets took a significant step back on weaker-than-expected labor data that challenged the idea of an economic soft landing. Mega Cap technology earnings continued to show massive cap-ex spend on AI; however, enthusiasm about AI's...
INHERITED IRAS AND NET UNREALIZED APPRECIATION: TODAY’S SLOTT REPORT MAILBAG
QUESTION: I inherited both a traditional and a Roth IRA from my significant other (non-spouse) who passed away in 2021. He had started taking required minimum distributions (RMDs). I am less than 10 years younger than he was. Question is: do I or do I not have...
Rethinking Your “Bucket List” In Retirement
As folks approach retirement, they often start mentioning their “bucket list” more frequently. The bucket list is generally an itemized agenda of experiences or achievements that a person hopes to accomplish during their lifetime before they “kick the bucket” or die....
PART 2: INHERITED ROTH IRA BY SPOUSE BENEFICIARY – 5-YEAR CLOCK ISSUES?
By Andy Ives, CFP®, AIF® IRA Analyst In Part 1 (July 17), I discussed 5-year clock issues when a non-spouse beneficiary inherits a Roth IRA. In Part 2, I will hit on the important concepts and options available when a spouse inherits a Roth IRA. Keep as...
Weekly Market Commentary
-Darren Leavitt, CFA Financial markets traded mixed last week. News on Sunday that President Biden had decided not to pursue reelection and endorse his Vice President Harris induced a reassessment of the political landscape. However, the overall reaction in the...
HOW ARE ANNUAL RMDS IN THE 10-YEAR PERIOD CALCULATED?
By Ian Berger, JD IRA Analyst In the July 22, 2024 Slott Report, my colleague Sarah Brenner explained how the IRS, in its final SECURE Act required minimum distribution (RMD) regulations issued on July 18, did not budge on a controversial position it had taken in its...
6 Steps to Tune Up Your Retirement Finances
Navigating retirement can be overwhelming given uncertainties like market volatility, inflation, life expectancy and the state of Social Security. Like having a mechanic give your car a periodic once-over, regularly reviewing your spending and saving can help keep...
Weekly Market Commentary
It was a very busy week on Wall Street as investors seemed inclined to rotate out of Mega-cap tech and into this year’s laggards. A failed assassination attempt on former President Donald Trump last Saturday in Pennsylvania only bolstered his chances for reelection...
Weekly Market Commentary
It was a very busy week on Wall Street as investors seemed inclined to rotate out of Mega-cap tech and into this year’s laggards. A failed assassination attempt on former President Donald Trump last Saturday in Pennsylvania only bolstered his chances for reelection...
ROTH CONVERSIONS AND SIMPLE IRA RMDS: TODAY’S SLOTT REPORT MAILBAG
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...
As Social Security’s funds face insolvency, experts say these are key factors to watch
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...
PART 1: INHERITED ROTH IRA BY NON-SPOUSE BENEFICIARY – 5-YEAR CLOCK ISSUES?
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...
IRS “HYPOTHETICAL RMD RULE” PREVENTS SURVIVING SPOUSES FROM AVOIDING RMDS
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...
INHERITED ROTH IRAS AND QUALIFIED CHARITABLE DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG
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...
Women, part of the wave of baby boomers reaching ‘peak 65,’ are more likely to struggle in retirement, research finds
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...
12 QCD RULES YOU MUST KNOW
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...
EXCESS CONTRIBUTION FIX: SAME IRA, DIFFERENT DOLLARS
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...
7 Key Factors That Could Affect How Long You’re Retired
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...
7 Key Factors That Could Affect How Long You’re Retired
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...
Weekly Market Commentary
-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...
IRS GIVES GUIDANCE ON PENALTY-FREE WITHDRAWALS FOR FINANCIAL EMERGENCIES AND FOR VICTIMS OF DOMESTIC ABUSE
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...
ROLLING OVER YOUR IN-PLAN CONVERSION? WATCH OUT FOR THE RECAPTURE RULE
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...
Weekly Market Commentary
-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%....
ROTH IRA DISTRIBUTIONS AND SELF-DIRECTED IRAS: TODAY’S SLOTT REPORT MAILBAG
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...
BEER PONG & IRA CUSTODIAL RULES
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...
Why millennials’ retirement outlook may be worse than those of older generations
KEY POINTS By some measures, millennials lag on retirement preparedness and net worth relative to older generations such as Gen X and baby boomers. There are many reasons for this, such as a shift away from pensions toward 401(k) plans and high student debt burdens....
FIVE THINGS TO KNOW ABOUT ROTH 401(K)S
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...
Weekly Market Commentary
-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...
TRUSTS AS A BENEFICIARY AND QUALIFIED CHARITABLE DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG
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...
SIMPLE IRA RMDS AND IRS LIFE EXPECTANCY TABLES: TODAY’S SLOTT REPORT MAILBAG
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...
3 Ways Retirement Planning is Changing in 2024
The calendar page has turned and 2024 is well on its way. Before we get too far down the road, be sure to check out these changes around retirement savings. Every so often the federal government approves changes to the contribution limits for tax-advantaged retirement...
DON’T OVERLOOK YOUR BENEFICIARY FORM
By Sarah Brenner, JDDirector of Retirement Education You have been contributing to your IRA for years. The market is up, and you are watching those investments grow. Maybe you have rolled over funds to your IRA from your company plan. You may now have a significant...
PARTICIPATION IN MULTIPLE WORK PLANS – IT CAN BE DONE!
By Andy Ives, CFP®, AIF® IRA Analyst It is perfectly acceptable for a person to participate in multiple work plans in the same year (even at the same time). For example, a 401(k) and a SEP. Or maybe a 401(k) and another 401(k). However, care must be taken to...
Weekly Market Commentary
-Darren Leavitt, CFA US Markets finished the second week of June with mixed results. It was an extremely busy week for investors as key Central Bank policy decisions were announced outside of a full economic calendar centered on two key inflation data sets. There...
IRA ROLLOVERS AND REQUIRED MINIMUM DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG
QUESTION: At age 80, after I take my required minimum distribution (RMD), can I then do a rollover from my IRA to my Roth IRA? If I can, is there a limit as to how much? I know that it is all taxable. Thanks, John ANSWER: John, Once your RMD has been satisfied, yes,...
A WISH LIST FOR THE IRS BENEFICIARY RMD FINAL REGULATIONS
After more than two years, we might actually soon be getting answers from the IRS on several important unanswered questions concerning required minimum distributions (RMDs) for those who inherit IRAs or company plan accounts. The 2019 SECURE Act completely changed the...
‘What Does Retirement Even Look Like?’
For older parents of adult children with disabilities, focus stays on caring for kids Jeanne Piorkowski looks forward to having more time in retirement to navigate the dense bureaucracy of forms, benefits and programs she can already rattle off like an expert. But she...
THE SLOTT REPORT TAKES ON AI
We are surrounded with information – and misinformation. Finding accurate up-to-date facts is increasingly difficult. Do an internet search and you will likely run into obsolete websites that have not been updated in years, paywalls demanding you subscribe before...
Weekly Market Commentary
-Darren Leavitt, CFA The S&P 500 inked its twenty-fifth all-time high for the year, with outperformance coming from the mega-cap technology names. The Vanguard Mega-Cap Growth ETF was up 3.3% for the week. NVidia and AMD started the week with new product...
SECURE ACT REGULATIONS AND INHERITED IRAS: TODAY’S SLOTT REPORT MAILBAG
Question: When can we expect final SECURE Act regulations from the IRS? Mike Answer: Hi Mike, No one knows for sure. However, there is now some hope that these may be coming sooner rather than later. In recently released Notice 2024-35, the IRS said that final...
ROTH 401(K) TO A ROTH IRA ROLLOVER: HOW DOES THIS WORK?
As retirement account questions go, this is the shortest inquiry with the longest answer. When asked what factors to consider and what 5-year clocks apply with a Roth 401(k) to Roth IRA rollover, I take a big breath and say, “Pull up a chair.” There are a number of...
GOVERNMENT REPORT HIGHLIGHTS CONFUSION OVER 401(K) DISTRIBUTION OPTIONS
A recent government report highlights how confused 401(k) participants are when they have to decide what to do with their savings after leaving employment. Tax rules require401(k) plans (and 403(b) and governmental 457(b) plans) to provide a written notice when...
Weekly Market Commentary
-Darren Leavitt, CFA The holiday-shortened week on Wall Street was volatile. The last of first-quarter earnings continued to influence the markets. Earning results from the retailers were mixed as BestBuy, Footlocker, Nordstrom’s, and Costco's shares increased on...
THE AGE 55 EXCEPTION AND ROLLOVERS OF ROTH IRAS: TODAY’S SLOTT REPORT MAILBAG
Question: Can an individual who is using the age 55 exception to the 10% early distribution penalty roll over a part of a 403(b) account to an IRA and leave a portion in the 403(b) to take penalty-free withdrawals? Thank you, Jamie Answer: Hi Jamie, There is no rule...
FIVE RMD FACTS EVERY IRA OWNER SHOULD KNOW
If you have an IRA and you are approaching retirement age, you have probably heard the term “required minimum distribution” (RMD). But do you know the details of how the rules work and what they mean for you? Here are five facts about RMDs that every IRA owner should...
Weekly Market Commentary
Weekly Market Commentary - 5/24/2024 -Darren Leavitt, CFA Financial markets ended the week with mixed results. All eyes this week were on AI darling NVidia, which posted better-than-expected Q1 results and provided guidance above the consensus estimates. The company...
5 Things You Need to Know Before Retiring at 62
A new study shows more Americans mulling early exit from workforce. Here’s what to look at before you leap The COVID-19 pandemic brought about a surge in early retirements that came to be called the Great Resignation. New research from the Federal Reserve Bank of New...
SIMPLE PLAN CONTRIBUTION LIMITS: INCREASED FOR MANY
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport We have written about this subject in the past (December 2023), but as is our philosophy here, learning is all about repetition, repetition, repetition. Surprisingly (he says with tongue...
WHEN A REVERSE ROLLOVER MAKES SENSE
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport In a famous “Seinfeld” episode, George Costanza, unemployed, living with his parents and without a girlfriend, decides to do the opposite of what he would normally do. It pays off for him big time as he...
Weekly Market Commentary
Weekly Market Commentary - 5/17/2024 -Darren Leavitt, CFA The major US equity indices inked a fourth consecutive week of gains as US Treasury yields fell on an in-line CPI print that showed a deceleration of inflation for the first time in three months. Still, Fed...
NET UNREALIZED APPRECIATION AND QUALIFIED CHARITABLE DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Question: I need guidance on a new client with the following information: Is age 55; Has a $700,000 ESOP in a company that he separated from over 10 years ago; and Wants...
WHAT YOU NEED TO KNOW ABOUT COMMUNITY PROPERTY AND YOUR IRA
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport What do you get when community property mixes with your IRA? Well, you will discover that the results can be confusing. Here are some facts every IRA owner should know. Community...
ED SLOTT’S ELITE ADVISOR GROUP℠ MEETS IN INDIANA
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport Ed Slott’s Elite IRA Advisor Group℠ gathered in Indianapolis last week for another successful conference. Over 350 member advisors from across the country spent two intense days of training,...
Weekly Market Commentary
Weekly Market Commentary - 5/10/2024 -Darren Leavitt, CFA The S&P 500 notched a third consecutive week of gains as the index broke and held above its 50-day moving average. Investors were treated to another dose of first-quarter corporate earnings. Disney, Uber,...
7 Spring Cleaning Moves for Your Finances
Here's how to get your financial house in order Forget cleaning out the closet, scrubbing the floors and washing the windows. The start of spring is an even better time to get your finances in order. “One thing on many people’s minds is cleaning. But what if you put...
QUALIFIED CHARITABLE DISTRIBUTIONS (QCDS) AND SOLO 401(K) PLANS: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Question: Can a QCD (qualified charitable distribution) be made from a 401(k) plan? Thanks! Answer: No, QCDs can only be made from IRAs and inactive SEP or SIMPLE IRAs. One possible workaround would...
A CHEAT SHEET FOR IRA BENEFICIARY RMDS
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport It’s been over four years since the SECURE Act upended the rules for beneficiary IRA required minimum distributions (RMDs), and there’s still plenty of confusion about the new rules. The IRS did give...
YOUR RMD IS NOT ELIGIBLE FOR ROLLOVER
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport If you are at retirement age, you might be at a high risk for excess contributions due to rollover mistakes. This is because of the rule that says that the required minimum...
Weekly Market Commentary
-Darren Leavitt, CFA It was an extremely busy week on Wall Street. First-quarter earnings results were highlighted by Apple and Amazon. Investors encouraged by their results sent higher shares on the back of increased dividends, increased share buyback programs, and...
ROLLOVERS AND SUCCESSOR BENEFICIARY RULES: TODAY’S SLOTT REPORT MAILBAG
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport QUESTION: My client is terminating employment and rolling over the funds from his 401(k). He was told that the funds must be rolled over to a “rollover IRA” and kept separate from any other...
ONE 60-DAY ROLLOVER PER YEAR?
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport SCENARIO: In one calendar year, Jessie completes the following transactions: 1. Takes a partial distribution from her 401(k) and does a 60-day rollover to an IRA. 2. Does a 60-day rollover...
401(K) RMDS IN THE YEAR OF RETIREMENT
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Here’s a question we get asked often: Say you retire in the year you turn age 73 (or in a later year) and you want to roll over your 401(k) funds to an IRA. Do you have to take a required minimum...
Weekly Market Commentary
Weekly Market Commentary - 4/26/2024 -Darren Leavitt, CFA US equity markets bounced back last week, with nearly 40% of the S&P 500 companies reporting first-quarter results. The rally was propelled by Microsoft and Google, whose better-than-expected earnings not...
INHERITED IRAS AND QUALIFIED CHARITABLE DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Question: My brother died in 2020 and made me the beneficiary of an IRA he inherited from my sister who died in 2017. Can I continue to stretch the payments from this...
How to Deal With a Big Tax Bill
Don’t panic — but do pay the tax tab Bills are a fact of life, though some require more urgent attention than others. Ignore your brother-in-law because you still owe him $50 from last year’s poker game, and you’ll get the cold shoulder. Ignore your debt to Uncle Sam,...
3 QUESTIONS TO ASK TO DETERMINE IF AN HSA IS RIGHT FOR YOU
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport The cost of healthcare continues to climb. Are you frustrated with higher premiums and out-of-pocket costs? You are not alone. You may be looking for new strategies to handle these...
FUNDAMENTALS OF THE LIFETIME RMD
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport We answer some pretty complex IRA and retirement plan questions. Our newsletters and other Slott Report entries can get into the weeds on some tricky topics. The thing is, when you spend all...
Weekly Market Commentary
Weekly Market Commentary - 4/19/2024 -Darren Leavitt, CFA Financial markets took another step back last week as investors grappled with increased tensions in the Middle East and the recognition that interest rates are likely going to be higher for longer. Iran fired...
7 Ways Retirement Will Be Different in 2024
How changes in Social Security, Medicare, taxes and more will affect your finances For most people, retirement finance is a delicate balance between income that’s likely less than what you made while working and expenses that may be lower in some areas (no more...
ROTH IRA DISTRBUTION RULES AND COMBINING IRAS: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Question: Can you please clarify a question I have about whether I should take a Roth IRA withdrawal? I am much older than age 59 ½, and my first Roth IRA was opened over 20 years ago. I now own a...
IRS WAIVES 2024 RMDS FOR IRA BENEFICIARIES SUBJECT TO THE 10-YEAR RULE
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport If you’re an IRA beneficiary subject to the 10-year payout period and would have had a 2024 required minimum distribution (RMD), you’re in luck. In IRS Notice 2024-35, issued yesterday (April 16), the IRS...
TWO RMD STRATEGIES TO AVOID IRMAA
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport You have carefully saved for retirement and now you have accumulated a substantial amount of funds in your IRA. At some point the funds that you have been putting away for years...
REQUIRED MINIMUM DISTRIBUTIONS AND QUALIFIED CHARITABLE DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport QUESTION: Dear IRA Help, My mother passed away in April of 2023 and no required minimum distribution (RMD) was taken. The entire IRA account was paid out to the charity that was the...
THE WISE SHOPPER – ROTH CONVERSIONS
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport Imagine walking through a grocery store, intent on purchasing a specific item. As you turn down an aisle, little colorful tags proclaiming “Special Deal” and “Buy 1, Get 1” protrude from each...
JUST A FEW DAYS LEFT TO FIX 2023 EXCESS 401(K) DEFERRALS
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport If you exceeded the 2023 limit for 401(k) deferrals, time is of the essence to correct the error. If you don’t act quickly, the tax consequences can be serious. The maximum amount of pre-tax and Roth...
Weekly Market Commentary
-Darren Leavitt, CFA Wall Street took a step back in the first week of the second quarter as robust economic data induced a recalibration of rate cut expectations. The recalibration was further influenced by Minneapolis Fed Governor Neel Kashkari's suggestion that the...
THE 10-YEAR RULE AND INHERITED IRAS: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Question: I have a general question regarding the 10-year time frame for emptying an inherited IRA. Your guidance says that the deadline is the END of the tenth year following death....
10 Things Boomers Should Consider Selling in Retirement
Retirement is not just about what you should buy or invest in — it’s equally about decluttering and letting go of assets that may no longer serve a purpose or even cost you money. For baby boomers, the following are items worth considering selling in retirement to...
4 WAYS TO REDUCE YOUR RMD TAX BITE
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Markets continue to climb. That is good news for your retirement account. However, there is a downside. When you contribute to a traditional IRA or a pre-tax 401(k), you make a deal...
10 POINTS: FIXING EXCESS IRA CONTRIBUTIONS
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport ‘Tis the season for identifying and correcting excess IRA contributions. It seems as if every other recent inquiry is about this subject. To keep readers on the straight and narrow, here are ten...
Weekly Market Commentary
Weekly Market Commentary - 3/28/2024 -Darren Leavitt, CFA The S&P 500 hit another all-time high this week as investors appeared to rebalance positions into quarter end. The week started with some weakness on the announcement that the EU was investigating Meta,...
RMD RULES FOR IRA BENEFICIARIES: TODAY’S SLOTT REPORT MAILBAG
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Question: Hi, My last remaining parent, my mother, passed away in May 2017, and my younger brother and I inherited her IRA (equally split into inherited IRA accounts). We were of the understanding we could...
ARE 529-TO-ROTH IRA ROLLOVERS SUBJECT TO STATE TAX?
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Previous Slott Report articles have covered the new SECURE 2.0 provision allowing 529 funds to be rolled over to Roth IRAs. We’ve reported that there are several unanswered questions concerning this new...
Weekly Market Commentary
-Darren Leavitt, CFA US equity markets forged another set of new highs in an extremely busy week on Wall Street. Global Central Banks took center stage, headlined by the Bank of Japan, the US Federal Reserve, and the Bank of England. The BOJ, as expected, moved away...
REQUIRED MINIMUM DISTRIBUTIONS AND ELIGIBLE DESIGNATED BENEFICIARIES: TODAY’S SLOTT REPORT MAILBAG
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport QUESTION: I know you can delay taking your first required minimum distribution (RMD) until April 1 of the year after you turn age 73. If you convert your entire IRA into a Roth before that date, but...
3 Ways Retirement Planning is Changing in 2024
The calendar page has turned and 2024 is well on its way. Before we get too far down the road, be sure to check out these changes around retirement savings. Every so often the federal government approves changes to the contribution limits for tax-advantaged retirement...
WHAT IS RETIREMENT? FANTASY VS. REALITY
By Andy Ives, CFP®, AIF® IRA Analyst Follow Us on X: @theslottreport Three times a week, every week, we add to the Slott Report. Two article entries and a mailbag. All factual, measurable information. “This is what to consider when you name a trust as your...
HOW SECURE 2.0 IMPACTS COMPANY PLAN IN-SERVICE WITHDRAWALS
By Ian Berger, JD IRA Analyst Follow Us on X: @theslottreport Retirement plan funds are designed for retirement, but Congress continues to make it easier for employees to pull out those funds while still working. The SECURE 2.0 law adds several new in-service...
Weekly Market Commentary
Weekly Market Commentary - 3/15/2024 -Darren Leavitt, CFA Markets pulled back this week as investors assessed hotter-than-anticipated inflation data. US Treasuries sold off across the curve as the higher-for-longer narrative strengthened ahead of the coming Federal...
HIGHER EDUCATION AND BACKDOOR ROTH CONVERSIONS: TODAY’S SLOTT REPORT MAILBAG
By Sarah Brenner, JD Director of Retirement Education Follow Us on X: @theslottreport Question: I have a client who is under age 59 ½ with a small traditional IRA. She wants to cash it in and use the funds for college education for her daughter. If I remember...
Five new retirement numbers to know in 2024
The new year has brought some new math for anyone running their retirement planning numbers. Social Security checks are a bit higher this month, thanks to the annual cost-of-living adjustment (COLA) - but higher Medicare Part B premiums will take a bite out of the...
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Your Wealth Must Reside Somewhere!
Your wealth must reside somewhere! It must have a permanent place of residence. You must own, control, and have use your money, or you haven’t built any wealth, you just stashed some money away. About 90 % of Americans keep their wealth in either taxable, unavailable, and/or volatile residences that limit what you can do with their money. If what you thought was true about your money, wasn’t true about your money, when would you want to know? I first heard this question from Don Blanton, a fine southern gentleman with a distinct southern Georgia drawl, and I’ve been unable to “unhear” it, since.