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


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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