Bobbing for IRA Answers

Q: Are all Roth IRA distributions tax-free?
A: No. Only qualified Roth IRA distributions are tax-free for IRA owners.

Q: My brother was only 48 years old and passed away this year. His estate was the named beneficiary and I was told that the 5-year rule applies, what does that mean?
A: In this case, the 5-year rule requires that his IRA be fully distributed to his estate by December 31, 2022. An MGIRA strategy is not available.

Q: I missed my 60-day rollover deadline, what are my options to correct this error?
A: You have the option of trying to get a PLR or you may qualify for an automatic waiver – the IRS identified 11 reasons that will qualify you for an automatic waiver. (IRS Revenue Procedure 2016-47).

Q: Can I name my son as the primary beneficiary of my IRA instead of my new spouse?
A: Anyone or anything can be named as your IRA beneficiary. However, in general if you are legally married and name someone other than your spouse as your primary beneficiary of your IRA, or designate that a non-spouse receives more than 50% as a co-primary, your spouse may be required to agree to this arrangement and sign a waiver.


More Updates


For trusts that inherited an IRA in 2019, an important deadline is approaching. The due date to provide required trust documentation to the IRA custodian to ensure that the longest payout period possible is available for the inherited IRA is October 31, 2020. Generally, only individuals who are named on an IRA beneficiary form can

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The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be

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Rolling Over an RMD

Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to

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