IRA ROLLOVERS AND REQUIRED MINIMUM DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG

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IRA ROLLOVERS AND REQUIRED MINIMUM DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG

QUESTION:

At age 80, after I take my required minimum distribution (RMD), can I then do a rollover from my IRA to my Roth IRA? If I can, is there a limit as to how much? I know that it is all taxable.

Thanks,

John

ANSWER:

John,

Once your RMD has been satisfied, yes, you can then do a Roth conversion for whatever amount you want. There is no limit on how much can be converted. Just be aware that income from Roth conversions can impact things like income-related monthly adjustment amount (IRMAA) brackets.

QUESTION:

I turn 73 in October 2024. Do I have to wait until my birthday in October, when I actually turn 73, to take my RMD amount for the year? Or does any withdrawal I make in 2024 count towards the RMD?

Thank you,

Liliana

ANSWER:

Liliana,

You do not have to wait until your actual 73rd birthday to satisfy your RMD. The first dollars withdrawn from the account are deemed to count toward the RMD. So, any distributions you take in calendar year 2024, even if taken in the months before your 73rd birthday, will count toward your RMD for the year.

Copyright © 2024 IRA Help, Reprinted with permission IRA Help, LLC takes no responsibility for the current accuracy of this information. https://irahelp.com/slottreport/ira-rollovers-and-required-minimum-distributions-todays-slott-report-mailbag-2/

OPM’s Retirement Backlog Hit an 8-Year Low Last Month

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OPM’s Retirement Backlog Hit an 8-Year Low Last Month

Efforts to streamline the processing of departing federal workers’ retirement applications continue to pay dividends, as the inventory of pending claims hit the lowest point since 2016.

The government’s backlog of pending retirement claims from federal workers hit an eight-year low last month.

The Office of Personnel Management’s retirement process and subsequent backlog has long dogged the federal government’s HR agency, frustrating agencies and departing federal employees alike, in large part due to paper-based legacy personnel systems. Follow link for more. https://bit.ly/4bWKOg2

 

May TSP Returns: Significant Gains With One Fund Up 11.2% in 2024

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May TSP Returns: Significant Gains With One Fund Up 11.2% in 2024

One TSP Fund—the most widely held Fund—is up 11.2% (so far) in 2024. Only one TSP Fund is down. 

TSP Funds End Rally on Final Day of the Month

The three major stock indices all posted gains in May. A significant rally on the last day of the month made a big difference. Follow link to find out https://bit.ly/3yGqGji .

Here’s How Every Generation Views Retirement in 2024, From Gen Z to Baby Boomers

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Here’s How Every Generation Views Retirement in 2024, From Gen Z to Baby Boomers

Different generations might have different viewpoints about retirement based on their values and experiences, but one thing just about every age group agrees on is that you need a lot of money to retire comfortably in the United States. Read more HERE.

 

4 Key Reasons Why TSP Lifecycle Funds May Miss the Target 

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4 Key Reasons Why TSP Lifecycle Funds May Miss the Target 

Lifecycle Fund investors need to be cognizant of higher fees, unintentional overlap/concentration, improper time horizon, and shifting too conservative too soon.

Lifecycle Fund, Target Date Fund, Life Strategy Fund, Target Retirement Date Fund: Regardless of the branding, these funds are all constructed around the same concept. The further away you are from a specific date, the more aggressive your investment portfolio can be, generally meaning more stocks and less bonds. Read more HERE.