A Safer Retirement and Environment – What We’re Implementing to Help Keep You Safe: READ MORE

Here at Asset Preservation Capital, LTD, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone call.

We look forward to continuing to help individuals and families achieve their ideal retirements.

Asset Preservation Capital, LTD
(248) 649-4759

By Andy Ives, CFP®, AIF®
IRA Analyst

Question:

My father passed away in 2019 and left me an IRA. Will the SECURE Act apply, or will it be grandfathered under the pre-2020 rules?

Thank you.

Aram

Answer:

Aram,

Since your father passed away in 2019, we will default to the old pre-SECURE Act rules. You are permitted to set up an inherited IRA and stretch payments over your own life expectancy if you choose to do so. Normally, your first RMD would have been due this year – 2020. However, the CARES Act waived 2020 RMDs, even for inherited IRAs. As such, RMDs will not start for you until 2021. (Just be sure to get the inherited IRA set up before the end of this year.)

Question:

Hello Ed,

I have a Roth IRA with a custodian and a Roth 401(k) that is in a bank account with myself as trustee. I am self-employed, 65 years of age, and have had both accounts open over 5 years.  Can I move the self-directed Roth IRA funds (with a custodian) over to my Roth 401(k) account tax free? I can’t find anything online that addresses this transfer.

Much appreciated,

Karyn

Answer:

Karyn,

As long as there are no liquidation restrictions on the investments within your self-directed IRA,  and as long as the 401(k) plan is designed to allow rollovers into the plan, then yes, you can proceed. There will be no taxes due on the rollover, and you will be able to consolidate your Roth dollars.

https://www.irahelp.com/slottreport/inherited-iras-and-roth-ira-rollovers-todays-slott-report-mailbag