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Here at Asset Consulting & Safe Money Solutions, Inc., 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.

Asset Consulting & Safe Money Solutions, Inc.
(765) 749-0082

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ROTH CONVERSIONS AND QUALIFIED CHARITABLE DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG

By Andy Ives, CFP®, AIF®
IRA Analyst
Follow Us on X: @theslottreport

QUESTION:

How many times in one year can a person do a Roth conversion?

Thank you.

ANSWER:

A person can do an unlimited number of Roth conversions in a year. Roth conversions do not count against the one-rollover-per-year rule, so there is no concern there. Each conversion in a calendar year will have the same start date for the 5-year conversion clock –- January 1 of that year. So essentially, multiple conversions in a single year will be combined and considered one big conversion for 5-year-conversion-clock reporting.

QUESTION:

Can a QCD (qualified charitable distribution) be made from a 401(k) or defined benefit plan?

Thanks.

ANSWER:

QCDs can only be made from IRAs (and inactive SEP and SIMPLE IRAs). A QCD cannot be done from any employer plans. However, employer plan dollars –- like from a 401(k) –- could potentially be rolled over to an IRA, and then the QCD could be completed. A few more important QCD items to consider: the IRA owner must be at least age 70½ to do a QCD; the QCD cap for 2024 is $105,000; the donation must be directly transferred from the IRA to the charity (although a check made payable to the charity can be sent to the IRA owner for hand delivery to the charity); and nothing can be received in return for the donation.

https://irahelp.com/slottreport/path-slottreport-roth-conversions-and-qualified-charitable-distributions-todays-slott-report-mailbag-0/

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