Roth IRA 60-Day Rollover Rules

Many times we get the question “Do the 60-day rollover rules apply to Roth IRAs?” The answer is, yes. When a distribution from a Roth IRA is made payable to the Roth account owner, the owner has 60 days from the date he receives the funds to roll the funds over to another Roth IRA. This type of rollover can only be done once every 12 months. No other...

Read More

You CAN'T Change Your Mind on a Roth 401(k) Conversion

While many of us know that you can convert an IRA to a Roth IRA, a process that’s not as well understood is a Roth 401(k) conversion. If you participate in a 401(k) at work, you can convert your existing plan assets to a Roth account inside the 401(k) plan. This option is known as an “in-plan conversion.” But check with your employer first because...

Read More

Slott Report Mailbag: How Does the New Tax Law Affect Me?

We have covered the new tax law (the American Taxpayer Relief Act of 2012) from both a retirement planning and tax planning standpoint since it was signed into law by President Barack Obama on January 2, 2013.  We wrote a quick analysis of the law complete with a 5-plus-minute video on 5 key planning points.  We followed with a detailed look at qualified charitable distributions (a topic we get frequent questions about), and how they were affected by the new law. Since then, we have added the following: an in-depth site on 2013 IRA and...

Read More

The 5-Year Rules: Moving a Roth Employer Plan to a Roth IRA

You have a Roth 401(k), 403(b), 457(b) or federal government Roth TSP. You have left your job and want to move those funds to a Roth IRA. What 5-year rule applies to the rolled over funds? Each Roth employer plan has its own 5-year clock unlike Roth IRAs, which have one clock that starts when you establish your first Roth IRA. This is the 5-year...

Read More

Contributions to Roth Employer Plan Accounts: What Can and Can't Be Contributed

We are frequently asked if Roth IRA accounts can be rolled into Roth employer plan accounts such as Roth 401(k)s, Roth 403(b)s or Roth 457(b) accounts. The answer is no. Here's why. The tax code only allows the following funds to be contributed to Roth employer plan accounts: Salary deferrals from your wages Catch-up contributions if you are age 50 or over during the year Automatic enrollment deferrals Rollovers from other Roth employer plans In-plan conversions from funds held in the regular portion of your account Other contributions, such...

Read More

July 4th: Your Independence From Taxes

Ed Slott, America's IRA Expert, talks about halftime in 2012 and the upcoming July 4th holiday as a backdrop for moving more of your money from FOREVER taxed to NEVER taxed while tax rates are at historic lows. Ed provides some key 2012 retirement planning strategies, including Roth IRAs and Roth 401(k)s, in this IRAtv video...

Read More

Video: Can I Move Money From a Roth IRA to a Roth 401(k)?

Ed Slott answers a question from a consumer in Florida about whether he can move money from his Roth IRA to a company-sponsored Roth 401(k). This video describes the differences between the two accounts and answers the question about transferring funds. -Compiled by Ed Slott and Jared Trexler Popular Bath Orbit Blue Bath Rug...

Read More

Roth IRA 5-Year Rules, Roth 401(k) Transfers Highlight Mailbag

Some of the trickiest IRA situations involving the Roth IRA 5-year rules. We receive questions about them constantly with each situation just a little bit different than the others. In this week's Slott Report Mailbag, we answer questions on the 5-year rules as well as an inquiry about Roth 401(k) transfer provisions.  As always, we...

Read More