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Here at Donato Wealth Management, 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.

Donato Wealth Management
(512) 833-6557

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REPAYMENT OF UNWANTED RMDS AND ROTH CONVERSIONS FROM COMPANY PLANS: TODAY’S SLOTT REPORT MAILBAG

By Ian Berger, JD
IRA Analyst

Question:

For COVID “special” Aug 31 rollovers, am I allowed to return my 401(k) required minimum distribution (RMD) to my IRA?

Thank you,

Maria

Answer:

Hi Maria,

Yes, the CARES Act and subsequent IRS guidance allows unwanted 2020 401(k) RMDs to be repaid through rollover to an IRA (or company plan) by August 31.

Question:

My daughter worked for a social services employee and had a 403(b) tax-sheltered annuity plan. Some of the contributions came from her employee, some came from her. Can she “rollover” the contributions from her employer into a Roth IRA? Thanks so much!

Answer:

Yes, all 403(b) funds, including elective deferrals and employer contributions, can be converted directly to a Roth IRA. This can be done without having to first roll over the funds to a traditional IRA. Of course, she will need to pay income taxes on any amount converted, and the conversion cannot later be undone.

https://www.irahelp.com/slottreport/repayment-unwanted-rmds-and-roth-conversions-company-plans-today%E2%80%99s-slott-report-mailbag

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Investment advisory services are offered through Foundations Investment Advisors, LLC and is a SEC registered investment advisor.