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

Here at Pinnacle Retirement Group, 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 calls.

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

Pinnacle Retirement Group
(610) 707-9170

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ROTH CONVERSIONS AND SIMPLE IRA RMDS: TODAY’S SLOTT REPORT MAILBAG

By Ian Berger, JD
IRA Analyst

Question:

One of our clients wants to cash out his IRA and then roll it into a Roth IRA within 60 days. Can this be done directly, or does it have to be rolled back into an IRA first and then converted?

Thanks,

Samuel

Answer:

Hi Samuel,

A Roth conversion can be done through a direct rollover to the Roth IRA or a 60-day rollover. However, not all custodians will allow the 60-day rollover.

Question:

I read in your book that if I’m still working and reach age 73, I don’t have to withdraw required minimum distributions (RMDs) from my 401(k). But I do have to draw them from my IRAs.

What if I have a SIMPLE IRA at my work?  Do I have to withdraw from that while still working?

Thanks,

Chris

Answer:

Hi Chris,

SIMPLE IRAS are tricky because they are sometimes treated like IRAs and sometimes treated like company plans. For the RMD rules, SIMPLE (and SEP) IRAs are treated like IRAs. So, you will need to start RMDs from your SIMPLE at age 73. This is true even if you can delay RMDs from your 401(k) under the “still-working exception.”

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