Ep. 1999: IRA Mistakes You Can’t Undo

Some IRA mistakes cannot simply be reversed. Don and Tom explain the traps around non-spouse beneficiary transfers, the one-rollover-per-year rule, 72(t) plans, the same-property rollover rule, outdated beneficiaries, qualified charitable distributions, missed RMDs, and portfolio drift. Then Mike from Salt Lake City asks how aggressively he should convert a traditional IRA to Roth before Social Security and future inherited assets change the tax picture. Don and Tom discuss bracket management, paying conversion taxes from taxable savings, QCDs, inherited pretax accounts, and rerunning the plan every year. They also answer whether costs matter in 529 and UTMA accounts and review a globally diversified retirement portfolio approaching withdrawals. 00:00 Dixieland intro 01:28 IRA mistakes you can’t undo 03:00 Non-spouse beneficiary transfers 04:50 The one-rollover-per-year rule 05:45 Altering a 72(t) plan 07:43 The same-property rollover rule 10:56 Beneficiaries, QCDs, RMDs, and portfolio drift 16:20 Roth-conversion strategy 22:42 Listener questions 23:44 529 and UTMA expenses 24:40 Reviewing a retirement portfolio 27:43 Wrap-up 28:47 Disclosures Questions? Comments? Click the microphone at TalkingRealMoney.com. Questions? Comments? Click!