In the January 5 edition of the Slott Report, we mentioned that the federal Thrift Savings Plan (for government workers and the military) started offering in-plan Roth conversions on January 28. This article will provide more information about in-plan Roth conversions generally – how they work, their availability, their tax consequences, and who can most benefit from them.
Question:Please explain the rules and qualifications for rolling over a portion of an IRA to a Health Savings Account (HSA).Thank you,Bill
If you are age 73 or older in 2026, you will need to take a required minimum distribution (RMD) from your IRA. Usually, an RMD is calculated using the IRS Uniform Lifetime Table. However, if you are married to a spouse who is more than 10 years younger, and your spouse is the sole primary beneficiary of your IRA, there is a special rule that applies.
Each year, in different cities, the Ed Slott team hosts several advisor training events for financial professionals serious about learning. These 2-day programs start with our cannonballing into the retirement account pool, and we do not come up for air – we only swim deeper.
QUESTION:I am age 75 and have just one IRA. I normally do multiple qualified charitable distributions (QCDs) during the year. I also make one or more partial Roth conversions during the year. Please confirm or correct my understanding on the following:
With all the tax changes made by the 2025 One Big Beautiful Bill Act (OBBBA), it’s no surprise that the IRS has made significant changes to the 2025 Form 1040 and supporting schedules and forms. Near the beginning of each year’s 1040 instructions, the IRS includes a section titled “What’s New” that summarizes the tax changes in effect for that year and how they are reflected on the 1040. The “What’s New” section in the 2025 instructions contains 25 items.
Everyone has heard the horror stories of how unneeded and unwanted trusts disrupted what should have been a smooth transition of wealth. However, it is important to recognize that estate planning for IRAs is nuanced. Trusts are not all bad and should not be overlooked or dismissed unilaterally. There are times when naming a trust as the beneficiary of an IRA definitely should be considered and may be, in fact, necessary for the best outcome.
If I have had my Roth IRA for 20 years and I do a conversion from my traditional IRA, is the five-year rule in effect for each conversion? I'm under the impression that once I held my Roth for more than five years I don't have to be concerned about the five-year rule.
Excess IRA contributions occur for many reasons, like making a contribution without eligible compensation, accidentally exceeding the Roth IRA phase-out limits, rolling over a required minimum distribution (RMD), etc. Excess contributions to 401(k) plans can also occur. A plan participant might contribute to one plan, quit, get a new job, and then inadvertently exceed the combined annual deferral limits to plan #2 at the new job. Regardless of why an excess happened in either an IRA or a 401(k), the correction methods between the two are drastically different.
Thinking about leaving your job? Make sure you understand the vesting schedule that applies to your retirement plan. It may pay to stick it out a little longer to become more “vested” in your plan. Otherwise, you may lose out on valuable benefits.
