IRAtv: International Tax Questions Involving Retirement Accounts

We receive questions every day involving international tax issues as they relate to retirement accounts. Does someone need to name a United States citizen as the benefi ciary of his/her IRA? Is the Stretch IRA option available for non-U.S. citizens? Can someone combine his/her foreign retirement plan with his/her IRA? Ed Slott and Company IRA Technical...

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Hardship Distributions from 401(k)s Carry a Hefty Cost

If you have a retirement plan where you work, that plan might allow you to take a distribution from it if you are experiencing financial hardship. Employer retirement plans are not required to provide for hardship distributions, so make sure to check with the plan administrator. Here is IRS FAQs regarding retirement plan hardship distributions. Often...

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Roth IRA Contributions: 3 Keys You Need to Know

Ed Slott and Company IRA Technical Consultant Jeffrey Levine discusses 3 key factors you need to know when planning or thinking about a Roth IRA contribution. You can view the video below and make sure to subscribe to our IRAtv YouTube page for the latest IRA, retirement and tax planning videos...

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3 Unexpected Ways Your Retirement Account Could Cost You

When managing your retirement account, you should be aware of the unexpected ways those employer-sponsored or IRA accounts could actually COST you. Jeffrey Levine details 3 of those situations in the article below. Student Aid If you have a child who is already a college student or is quickly approaching that age, chances are you’ve noticed the extravagant...

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Retirement Plan Simplification Legislation Proposed in Congress

On May 22nd, Congressman Richard E. Neal (D-MA) introduced H.R. 2117, The Retirement Plan Simplification and Enhancement Act of 2013, in the House of Representatives. H.R. 2117 is proposed legislation that is intended to boost retirement savings. Rollovers of Life Insurance to IRAs Would be Allowed The bill proposes several IRA related changes. One proposed change would allow the rollover of insurance contracts from your employer's qualified retirement plan (e.g., 401(k)) into your IRA. Currently, you cannot invest any part of your IRA in life...

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Advisor Perspective: Ed Slott's Elite IRA Advisor Group

Ed Slott's Elite IRA Advisor Group is a membership group of financial advisors who are committed to their IRA education and serving their clients' best financial and retirement planning interests. At our last workshop this May in Dallas, Texas, Ed Slott and Company IRA Technical Consultant Jeffrey Levine spent some time with several members to get their perspective on the educational expertise they receive and how it has elevated their standing in the industry and enhanced their business. Below are two roundtable discussions with seven members...

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How to Name a Non-Spouse Beneficiary of Your Retirement Account

Life events happen. Marriage is one of those major life events that make you focus on not just the present, but the future. Ed Slott and Company IRA Technical Consultant Jeffrey Levine got married this past Sunday then sat down to talk about how you can name a non-spouse beneficiary of your retirement account. It seems counter-intuitive, but Levine wants you to know that naming a spouse is the easy part, yet there are many current and future retirees that don't have a spouse or want to name a child or grandchildren as the beneficiary of their...

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Slott Report Mailbag: Can Inherited Retirement Plan Funds Be Converted to an Inherited Roth IRA?

Summer is almost here, as the unofficial start to the summer season begins with Memorial Day weekend. To celebrate, we open some IRA, tax and retirement planning mail and answer several of your most pressing questions. This week's Slott Report Mailbag looks at some intricate IRA issues along with a question about the provisions in the new tax law....

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5 Things To Know About Disability Exception to 10% Early IRA Distribution Penalty

Retirement funds, like the money in your IRA, should generally be preserved for use in your retirement. This is not exactly a novel concept, but one that often bears repeating. That being said, sometimes events happen beyond your control that might require you to access your retirement funds before you intended. If you happen to be younger than age...

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Non-Deductible IRA Contributions: What You Need to Know

In order to make an IRA contribution, you must be younger than age 70 1/2 for the year and also have wages or compensation from your job. Once you make your IRA contribution, then you have to figure out whether it's tax deductible or not. If either you or your spouse actively participates in an employer retirement plan at work, then you might not...

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Sequester Hits IRS

The sequester is coming! The sequester is coming! That is all you heard in February and March. The sequester is automatic federal budget cuts that took effect on March 1, 2013. The intent was to reduce the federal deficit. The cuts took effect because Congress couldn’t come to an agreement on more sensible budget cuts. March 1st came and went and...

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Wedded Miss: How Changing Your Last Name Affects Moving Your Retirement Money

Tradition has it that when a man and a woman get married, the woman typically takes the last name of her husband. Although today, many choose to modify this tradition, perhaps by hyphenating their maiden name with their husband’s surname, or do away with it altogether and keep their own name, there are still many who keep this tradition alive. One...

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Prohibited Transactions Can Come Back to Haunt You

Two individuals wanted to purchase a business together. They set up self-directed IRAs and a corporation to hold the business. The self-directed IRAs purchased the shares of the new company, which then purchased an ongoing business. The purchase of the business was partly funded with loans that were personally guaranteed by the two individuals. The IRAs were later converted to Roth IRAs. Eventually the Roth IRAs sold the stock held in the business at a profit. IRS got wind of all of this and sent the individuals tax notices for tax on the gains...

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State Income Tax Consequences of an IRA Contribution

Just about 24 hours ago, the wheels of my plane touched down in Dallas, Texas, site of this week's Ed Slott's Elite IRA Advisor Group and Master Elite IRA Advisor Group Conferences. Texas is a great place to visit. If you haven't been yet, I'd highly recommend it. It's also not a bad place to call home, especially since it's one of just seven states...

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Roth Conversions and the 2013 Taxes

A Roth conversion could cost you more in 2013. That's because of several new and/or increased taxes in play for this year. The top income tax bracket is 39.6% for individuals married filing jointly with taxable income in excess of $450,000. A large Roth conversion could easily push an individual into the highest income tax bracket. When adjusted gross income for our married couple exceeds $300,000, personal exemptions and itemized deductions begin to phase out. And, when modified adjusted gross income exceeds $250,000, net investment income for...

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3 Financial and Retirement Planning Keys As Your Wedding Nears

Ed Slott and Company IRA Technical Consultant Jeffrey Levine discusses 3 financial and retirement planning keys you should discuss with your impending spouse as your wedding nears. Jeffrey talked about these keys in the IRAtv YouTube video below. -By Jeffrey Levine and Jared Trex...

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More Information on IRS' Tax Filing Extension to Boston Bombing Victims

The IRS issued a News Release (IR-2013-43) that gives a three-month tax filing and payment extension to Boston area taxpayers and others affected by the bombs at the Boston Marathon on Monday, April 15th. The new deadline is July 15, 2013. The relief applies to all individual taxpayers who live in Suffolk County, MA, including the city of Boston....

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IRS Provides Relief to Those Affected by Boston Marathon Bombing Tragedy

Let me start by saying we here at Ed Slott and Company were horrified and deeply saddened by the deadly bombings at the Boston Marathon on Monday. Our hearts go out to the victims and their families, and we salute the first responders and brave citizens who so courageously rushed to the aide of so many who were in need, no doubt saving countless lives. Earlier...

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Making a 2012 IRA Contribution AFTER April 15, 2013

Now that April 15, 2013 has passed, and the anxiety of filing our 2012 tax returns is over for most of us, some of you may be wondering if it’s possible to make an IRA contribution for 2012. The answer generally is no, but there are some exceptions. The general rule is that deadline for making an IRA contribution for the prior year is your deadline for filing your federal income tax return. However, if you filed for an extension to file your taxes, that does not extend your IRA funding deadline. Basically, the IRA deadline is your un-extended...

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Tax Time 1040 Madness

With just 5 days left in the 2013 tax season, you might be scrambling to prepare your tax returns at the last minute, but as you go to reach for that 1040, here’s the question… which one? Yes, believe it or not, there are actually many different 1040 options available to you. Which one you should use depends on a number of factors, such as your filing...

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