Tax Time IRA Quiz

Tax Time IRA Quiz

True or False?

Q: The IRS can waive the IRA one-rollover-per year rule. 

A: FALSE. While the IRS may choose to waive the 60-day rollover requirement under certain circumstances for reasonable cause, the IRS cannot waive the one per year rollover limitation.

Q: An IRA could be subject to tax on unrelated business income (UBIT).

A: TRUE. For example, if you have self-directed IRA that invests in debt-financed real estate, a hedge fund arrangement, LLC, LP or other entity that doesn’t pay corporate tax, your IRA could be subject to UBIT.

Q: If I change my mind, I can recharacterize my Roth IRA conversion.

A: TRUE. FALSE. This rule changed effective December 31, 2017. You can no longer recharacterize your Roth IRA conversion.

Q: If I am still working, I can delay RMDs from my IRA until I retire.

A: FALSE. While some employer plans such as a 401(k) or 403(b) may offer this option, the still working exception does not apply to IRAs.


More Updates


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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Tapping Into Retirement Accounts If Not Directly Impacted By COVID-19

The recently-­‐enacted Coronavirus Aid, Relief, and  Economic Security Act (CARES  Act) signed by President Trump  on  March  27, 2020, allows  “qualified individuals” to take up  to  $100,000 of  penalty-­‐free IRA and company plan withdrawals during 2020. “Qualified individuals” include those who are (or whose family members are) sickened by the virus or who have virus-­‐related

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