Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 5
I have heard that there are tax advantages for rollovers that will be ending this year.

One hears all sorts of things from all sorts of sources, and election campaigns don't make it better. I'm not aware of anything affecting retirement account rollovers that's scheduled or even proposed. I will admit that I don't pay attention to campaign tax proposals since they're pretty meaningless until there's proposed stat language. YMMV.

an inherited IRA worth @ $6000; first acquired this year; first RMD will be Nov 2012. Need to move this to another brokerage or rollover or something - do not like fees at Prudential. I realize if I 'roll' this it will be a 'distribution' (?) with taxes paid in full now.

I don't know where you heard that, but it's not true. You can roll an inherited IRA anywhere you like with zero tax consequence. Just make sure that it's rolled into an inherited IRA, basically the same account heading that it has now.

I think it's inevitable that taxes will rise sometime since we have deficit problems and rates are at historical lows. If you have extra cash sitting around to pay the taxes, converting some of your existing accounts to Roth might not be a bad idea. Also, I'd definitely roll the traditional IRA into the SEP account since it's so small. That has zero tax effect.

You can read about rollovers in IRS Pub 590.

Rule Your Retirement Home Fool
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.