Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA It was a very busy week on Wall Street as investors analyzed a deluge of corporate earnings reports and a full economic data calendar.  The S&P 500 traded lower for the second consecutive week and could not close out October with a gain,...

Turn Your Clocks Back, and Pay Attention to the Roth IRA Clocks

By Ian Berger, JD IRA Analyst Don’t forget to turn your clocks back this weekend! With that reminder comes another: pay attention to the Roth IRA distribution clocks. The key point to remember is that there are two different clocks, each used for a different purpose....
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA Global markets pulled back last week as investors took the opportunity to reduce some risk before a very close US Presidential election. In the US, nearly 20% of the S&P 500 reported earnings. Generally, results came in better than expected;...

3 IRA Tasks to Complete by the End of 2024

Sarah Brenner, JD Director of Retirement Education   The year 2024 has flown by and the holidays season will soon be upon us. That means time is running out on year-end IRA deadlines. You will want to be sure to get the following three IRA-related tasks done...
What the Fed’s Rate Cut Means for You

What the Fed’s Rate Cut Means for You

The Federal Reserve just reduced interest rates for the first time in four years. Here’s how it will impact borrowers and saver What goes up must come down, and after four years, that’s finally true about interest rates. The Federal Reserve cut its benchmark rate on...
What the Fed’s Rate Cut Means for You

What the Fed’s Rate Cut Means for You

The Federal Reserve just reduced interest rates for the first time in four years. Here’s how it will impact borrowers and saver What goes up must come down, and after four years, that’s finally true about interest rates. The Federal Reserve cut its benchmark rate on...

The Zombie Rule

  By Andy Ives, CFP®, AIF® IRA Analyst This article is NOT about the “ghost rule” applicable to non-living beneficiaries. That payout rule applies when a non-person beneficiary (like an estate) inherits an IRA when the original owner died on or after his required...
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA The S&P 500 advanced for the sixth consecutive week, closing at a new record high. This week, a broadening out of the market’s rally was evident, with small caps and the equally weighted S&P 500 index outperforming. Markets also appear to...

Nuances of NUA

We have written about the net unrealized appreciation (NUA) tax strategy many times. Generally, after a lump sum distribution from the plan, the NUA tactic enables an eligible person to pay long term capital gains (LTCG) tax on the growth of company stock that...
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA The S&P 500 and Dow Jones Industrial Average forged another set of all-time highs despite facing several macro headwinds. Chinese markets reopened after celebrating Golden Week with significant losses. Investors were expecting an announcement...
Why Retirement Gets Better With Annuities

Why Retirement Gets Better With Annuities

Everyone aspires to have a steady source of income after retirement that replaces as much as possible of their pre-retirement earning. But for many people, one big challenge in saving for that goal is to find the right financial product that accommodates their...

Final Regulations Allow Separate Accounting for Trusts

Sarah Brenner, JD Director of Retirement Education The recent final required minimum distribution (RMD) regulations include a new rule change that may be beneficial for IRA owners who name trusts as beneficiaries. In the new regulations, the IRS allows separate...
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA The S&P 500 closed higher for a fourth consecutive quarter, the first time it has done so since 2011. Investors continued to face a challenging macro environment. Escalating tensions in the Middle East, a Longshoremen’s strike, the aftermath...
Results From the 2024 Retirement Confidence Survey Find Workers’ and Retirees’ Confidence Has Not Recovered From the Significant Drop Seen in 2023, but Majorities Remain Optimistic About Retirement Prospects

Results From the 2024 Retirement Confidence Survey Find Workers’ and Retirees’ Confidence Has Not Recovered From the Significant Drop Seen in 2023, but Majorities Remain Optimistic About Retirement Prospects

Summary – However, almost 8 in 10 workers and 7 in 10 retirees are concerned that the U. S. government could make significant changes to the American retirement system – A new report published today from the 34th annual Retirement Confidence Survey finds...

Recharacterization Still Exists

By Andy Ives, CFP®, AIF® IRA Analyst   When a traditional IRA owner wants to convert all or a portion of his account to a Roth IRA, he needs to think long and hard about the transaction. For example, some questions to consider: 1. When will this money be needed?...
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA US equity markets posted a third week of gains as global central banks continued to cut monetary policy rates.  China, Switzerland, Mexico, Hungry, and the Czech Republic cut their policy rates.  Chinese markets gained on the news that several...

Weekly Market Commentary

-Darren Leavitt, CFA US equity markets posted a third week of gains as global central banks continued to cut monetary policy rates.  China, Switzerland, Mexico, Hungry, and the Czech Republic cut their policy rates.  Chinese markets gained on the news that several...
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA US equity markets posted a third week of gains as global central banks continued to cut monetary policy rates.  China, Switzerland, Mexico, Hungry, and the Czech Republic cut their policy rates.  Chinese markets gained on the news that several...

Recharacterization Deadline Approaches

By Sarah Brenner, JD Director of Retirement Education   It happens. You have made a 2023 contribution to the wrong type of IRA. All is not lost. That contribution can be recharacterized. While recharacterization of Roth IRA conversions was eliminated by the Tax...

IRA Acronyms

By Andy Ives, CFP®, AIF® IRA Analyst   When presenting a particular section of our training manual, I usually make the joke that, “if we were playing an acronym drinking game, we would all be on our way to a hangover.” The segment is titled: “Missed stretch IRA...
Weekly Market Commentary

Weekly Market Commentary

The S&P 500 notched its 39th record high in 2024 on the back of a fifty-basis-point rate cut by the Federal Reserve. Global central banks took center stage this week, with the Fed playing the headliner. Leading into the Fed’s decision, the street was divided over...
Why Retirees Are Carrying More and More Debt

Why Retirees Are Carrying More and More Debt

Federal Reserve data shows sharp rise in amount Americans 65 and older owe Americans across generations are carrying more debt than they did three decades ago, according to Federal Reserve data, but the rise has been especially steep among the oldest age groups. The...

What’s the First RMD Year for Those Born in 1959?

By Ian Berger, JD IRA Analyst If you were born in 1959, what is the first year that you must start taking required minimum distributions (RMDs)? That would seem like an easy question to answer, but because of a snafu by Congress, it isn’t quite so clear. For many...

What You Need to Know About Withholding and Your IRA

By Sarah Brenner, JD Director of Retirement Education If you take a distribution from your traditional IRA, in most cases you will owe taxes. The government wants to be sure those taxes are paid, so IRA distributions are subject to federal income tax withholding. The...
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA Markets bounced back nicely in the second week of September.  It was an intriguing week of trade with several undercurrents to consider.  The first and likely only Presidential debate between Harris and Trump appeared to be won by Harris, although...

REQUIRED MINIMUM DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG

By Andy Ives, CFP®, AIF® IRA Analyst QUESTION: I inherited a traditional IRA from my mother in 2024. She passed before her required beginning date (RBD.) I know that I fall under the 10-year rule. The question is, do I need to start required minimum distributions...

401(k) to IRA Rollover – 3 Buckets

By Andy Ives, CFP®, AIF® IRA Analyst Workplace retirement plans – like a 401(k) – can hold different types of dollars. Typically, a 401(k) will have a pre-tax bucket and a Roth bucket. Occasionally, a plan will have a third bucket to hold after-tax (non-Roth) money....
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA Global equity markets tumbled due to economic growth concerns as the US Treasuries extended their gains from August. The holiday-shortened week started with weaker-than-anticipated manufacturing data out of China, which highlighted just how weak...
3 Changes Are Coming to 401(k) Plans in 2025

3 Changes Are Coming to 401(k) Plans in 2025

Three significant 401(k) plan changes coming in 2025 are worth paying attention to, regardless of when you plan to retire, whether you work full-time or part-time, or whether you even have a 401(k) yet. In late 2022, Congress passed a law to help savers build their...
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA The final week of August was all about NVidia’s second-quarter earnings results and the Fed’s preferred measure of inflation, the PCE. Expectations for NVidia’s earnings were so high that some decided to throw pre/post-earnings...
6 Retirement Savings Changes To Expect in 2025

6 Retirement Savings Changes To Expect in 2025

Big changes are coming to retirement savings in 2025. The shifts in retirement planning come after Congress passed the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) in 2019 and its 2022 follow-up, the SECURE 2.0, which further expanded and...

New Rules: Aggregating Year-of-Death RMDs

By Andy Ives, CFP®, AIF® IRA Analyst In my August 19 Slott Report (“Year of Death RMD – Deadline Extended!”), I wrote about the required beginning date, who takes the year-of-death required minimum distribution (RMD), and the deadline for taking that distribution....

New IRA Aggregation Rule When Doing a Rollover in an RMD Year

Ian Berger, JD IRA Analyst   If you have multiple traditional IRAs and want to do a 60-day rollover (or Roth conversion) in a year when a required minimum distribution (RMD) is due, the IRS has a surprise for you. RMDs from multiple traditional IRAs (and SEP or...
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA US financial markets inked another week of gains as investors cheered what they heard from global central bankers at the Jackson Hole Economic Symposium. In fact, the bulk of the gains were made on Friday after Fed Chairman Jerome Powell...

The Roth IRA Advantage Under the Final RMD Rules

Sarah Brenner, JD Director of Retirement Education In 2020, the SECURE Act completely changed the game for nonspouse IRA beneficiaries. Now, most are subject to the 10-year payout rule. Recently released final RMD rules keep the controversial proposed rule that...

Year-of-Death RMD – Deadline Extended!

By Andy Ives, CFP®, AIF® IRA Analyst When a person reaches the required beginning date (RBD) – generally April 1 of the year after the year the person turns age 73 – required minimum distributions (RMDs) must officially start on traditional IRAs. But what if an IRA...
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA Markets reversed course last week as investors reassessed the economic narrative of a recession. Better-than-expected inflation data, alongside a robust reading of Retail Sales and a pullback on Initial Jobless Claims, tempered fears of a severe...
How Will the 2024 Election Impact Your Retirement?

How Will the 2024 Election Impact Your Retirement?

Investors should expect volatility but also try not to overreact to news. To prepare, focus now on tax minimization, protecting your portfolio and more. In times of great change, it is only natural for people to wonder and worry. Without perspective, it morphs into...

Roth 401(k) Dollars Are No Longer Subject to RMDs

By Ian Berger, JD IRA Analyst If you have both pre-tax and Roth accounts in a 401(k) (or a 403(b) or governmental 457(b)) and are subject to required minimum distributions (RMDs), be aware of new rule changes made in the 2022 SECURE 2.0 law. The rules were clarified...
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA Wow, what a week for global financial markets.  A rollercoaster ride for investors continued throughout the week as multiple narratives ricocheted off prior expectations.  Crowded trades coupled with weaker-than-expected economic data in the prior...

INHERITED ROTH IRAs AND NUA: TODAY’S SLOTT REPORT MALBAG

By Ian Berger, JD IRA Analyst Question: Thank you for all of the wonderful information. I have a question as to how the July 18, 2024 final regulations impact inherited Roth IRAs. My daughters inherited Roths from their grandmother 3 years ago. She was age 101. They...
‘What Does Retirement Even Look Like?’

‘What Does Retirement Even Look Like?’

For older parents of adult children with disabilities, focus stays on caring for kids Jeanne Piorkowski looks forward to having more time in retirement to navigate the dense bureaucracy of forms, benefits and programs she can already rattle off like an expert. But she...

A PHILOSOPHICAL SLOTT REPORT ENTRY

By Andy Ives, CFP®, AIF® IRA Analyst Trapped. For two nights in July, I slept on the floor at Atlanta Hartsfield International Airport – a victim of the mass Delta computer outage. Booking a hotel after midnight (when the final cancellation hit) was not worth the...
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA Last week, markets took a significant step back on weaker-than-expected labor data that challenged the idea of an economic soft landing. Mega Cap technology earnings continued to show massive cap-ex spend on AI; however, enthusiasm about...
Rethinking Your “Bucket List” In Retirement

Rethinking Your “Bucket List” In Retirement

As folks approach retirement, they often start mentioning their “bucket list” more frequently. The bucket list is generally an itemized agenda of experiences or achievements that a person hopes to accomplish during their lifetime before they “kick the bucket” or die....
Weekly Market Commentary

Weekly Market Commentary

-Darren Leavitt, CFA Financial markets traded mixed last week.  News on Sunday that President Biden had decided not to pursue reelection and endorse his Vice President Harris induced a reassessment of the political landscape.  However, the overall reaction in the...

HOW ARE ANNUAL RMDS IN THE 10-YEAR PERIOD CALCULATED?

By Ian Berger, JD IRA Analyst In the July 22, 2024 Slott Report, my colleague Sarah Brenner explained how the IRS, in its final SECURE Act required minimum distribution (RMD) regulations issued on July 18, did not budge on a controversial position it had taken in its...

REQUIREMENT DURING 10-YEAR RULE STANDS

By Sarah Brenner, JD Director of Retirement Education   On July 18, 2024, the IRS issued final required minimum distribution (RMD) regulations under the 2020 SECURE Act. The newly issued regulations fine-tune existing rules for trust beneficiaries and aggregation...
6 Steps to Tune Up Your Retirement Finances

6 Steps to Tune Up Your Retirement Finances

Navigating retirement can be overwhelming given uncertainties like market volatility, inflation, life expectancy and the state of Social Security. Like having a mechanic give your car a periodic once-over, regularly reviewing your spending and saving can help keep...
Weekly Market Commentary

Weekly Market Commentary

It was a very busy week on Wall Street as investors seemed inclined to rotate out of Mega-cap tech and into this year’s laggards.  A failed assassination attempt on former President Donald Trump last Saturday in Pennsylvania only bolstered his chances for reelection...

Weekly Market Commentary

-Darren Leavitt, CFA US financial markets were able to log another set of all-time highs as investors cheered a weaker-than-anticipated Consumer Price Index report that signaled more progress on the inflation front.  The US Treasury market rallied nicely on the news...

12 QCD RULES YOU MUST KNOW

By Sarah Brenner, JD Director of Retirement Education If you are charitably inclined and have an IRA, a Qualified Charitable Distribution (QCD) can be a great strategy. With a QCD, you can move IRA funds to the charity of your choice tax-free. Here are 12 QCD rules...

EXCESS CONTRIBUTION FIX: SAME IRA, DIFFERENT DOLLARS

By Andy Ives, CFP®, AIF® IRA Analyst If I pour too much water into a glass, removing liquid from a different glass does not correct the problem. The excess water must be removed from the “offending” receptacle. Such is the case with excess IRA contributions. If too...

Weekly Market Commentary

-Darren Leavitt, CFA The holiday-shortened week saw the S&P 500 hit its 34th record high this year. The NASDAQ 100 also eclipsed the 20k mark for the first time.  Traders welcomed weaker-than-expected economic data that fostered the likelihood that the Federal...

Weekly Market Commentary

-Darren Leavitt, CFA Financial markets finished the 2nd quarter with a lack of conviction.  Mega-caps led the market over the quarter with a 9.65% gain, while the equally weighted S&P 500 index declined by -2.42%, and the market weight S&P index gained 4.13%....

BEER PONG & IRA CUSTODIAL RULES

By Andy Ives, CFP®, AIF® IRA Analyst You know the game “beer pong?” Arrange 6 or 10 cups in a triangle, fill each one with a couple of ounces whatever beverage you are enjoying, and your opponent tries to toss a ping-pong ball into one of the cups. If a throw is...

FIVE THINGS TO KNOW ABOUT ROTH 401(K)S

By Ian Berger, JDIRA Analyst A recent survey found that over 80% of 401(k) plans now offer employees the option of making Roth 401(k) employee contributions. More and more employees are now taking advantage of that opportunity. (In this article, I use the term “Roth...

Weekly Market Commentary

-Darren Leavitt, CFA The holiday-shortened week saw the S&P 500 eclipse 5500 and hit its 31st all-time high of the year.  Volumes were relatively light until Friday, when $5.5 trillion in derivatives expired and rolled in the next contract month.  Several...
3 Ways Retirement Planning is Changing in 2024

3 Ways Retirement Planning is Changing in 2024

The calendar page has turned and 2024 is here. Before we get too far down the road, be sure to check out these changes around retirement savings. Every so often the federal government approves changes to the contribution limits for tax-advantaged retirement plans....

DON’T OVERLOOK YOUR BENEFICIARY FORM

By Sarah Brenner, JDDirector of Retirement Education You have been contributing to your IRA for years. The market is up, and you are watching those investments grow. Maybe you have rolled over funds to your IRA from your company plan. You may now have a significant...

PARTICIPATION IN MULTIPLE WORK PLANS – IT CAN BE DONE!

By Andy Ives, CFP®, AIF® IRA Analyst   It is perfectly acceptable for a person to participate in multiple work plans in the same year (even at the same time). For example, a 401(k) and a SEP. Or maybe a 401(k) and another 401(k). However, care must be taken to...

Weekly Market Commentary

-Darren Leavitt, CFA US Markets finished the second week of June with mixed results.  It was an extremely busy week for investors as key Central Bank policy decisions were announced outside of a full economic calendar centered on two key inflation data sets.  There...