How the Roth 5 Year Rule Works - Posted August 23, 2023

By Sarah Brenner, JD
Director of Retirement Education

New Law May Lower RMDS When Annuity is Annuitized – But IRS Guidance Needed - Posted August 16, 2023

By Ian Berger, JD
IRA Analyst

Inherited IRAs and Roth Conversions - Posted July 27, 2023 

By Sarah Brenner, JD
Director of Retirement Education

Q&A on Recent IRS RMD Relief - Posted July 26, 2023

By Ian Berger, JD

IRA Analyst

Trust As IRA Beneficiary - Potentially a Catastrophic Problem - Posted July 19, 2023

By Andy Ives, CFP, AIF
IRA Analysit

10 Year Rule and Designated Beneficiaries - Posted July 6, 2023

By Sarah Brenner, JD
Director of Retirement Education

Questions on 60 Day Roll-Overs and Required Minimum Distributions - Posted June 29, 2023

By Sarah Brenner, JD
Director of Retirement Education

Why Should You Roll Over Your Retirement Funds to an IRA? - Posted June 28, 2023

By Sarah Brenner, JD
Director of Retirement Education

Question:

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 funds in your retirement plan? One option is to do a rollover to an IRA. An IRA rollover offers some big benefits.

DEATH OF AN IRA BENEFICIARY – BEFORE CLAIMING THE ACCOUNT - Posted June 26, 2023

By Andy Ives, CFP®, AIF®
IRA Analyst

Question:
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 IRA for the beneficiary. But what if the beneficiary dies after the death of the original IRA owner, but prior to claiming the account? After all, it can be well over a year before any action needs to be taken by the beneficiary. A lot could happen in that time. Are the IRA dollars now suddenly in limbo with no owner? Are there any protocols or rules to follow in such a scenario?

Question:
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 IRA for the beneficiary. But what if the beneficiary dies after the death of the original IRA owner, but prior to claiming the account? After all, it can be well over a year before any action needs to be taken by the beneficiary. A lot could happen in that time. Are the IRA dollars now suddenly in limbo with no owner? Are there any protocols or rules to follow in such a scenario?

Inherited IRA RMD Requirements And Roth 401K Rules - Posted June 22, 2023

By Ian Berger, JD
IRA Analyst
 

Question 1: 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 understand the new legislation passed under the SECURE Act requires any such traditional inherited IRA requires full distribution by the end of the 10-year period following her death.  I fully understand the law change.

My question revolves around potential yearly RMDs for each of us starting in 2023. Are RMDs for inherited IRAs now required by IRS regulation starting in 2023?  If so, under what table is the RMD calculated (by applying the factor to the 12/31/2022 balance)?

The Treasury issued PROPOSED regulations in 2022 indicating that RMDs for inherited IRAs would be required.  My understanding is the proposed regulations were met with significant protest by tax professionals and practitioners. However, my understanding is that PROPOSED regulations are not binding until finalized by the Treasury Dept. I have not seen any document or commentary indicating that the applicable regulations have ever been finalized. Are RMDs required for inherited IRAs in 2023 until the Treasury Dept. finalizes the regulations? 

 

Question 2: My age is currently 69, and several years ago I converted funds in a regular 401(k) account to a Roth 401(k) account.  My questions are whether the 5-year rule applies to this conversion and at what age does my RMD kick in for the amount in my regular 401(k)?