Listen: IRA Keisha, IRS And Jerry discussed on Radio Night Live with Kevin McCullough
"Hopefully next year two thousand nineteen my first year to start our MD to my simple question. I'm not working at this time. Could I just open a Roth IRA and take whatever I get takeout in my arm D, And to put it into a Roth IRA, unfortunately, no the required minimum district distribution amount. Is specifically prohibited from being converted to an IRA to a Roth IRA, so let's say one hundred thousand dollar IRA you have a four thousand dollar required. Minimum distribution roundabout. You have to take four thousand out and keep it out of IRA world anything over that four thousand can be converted to a Roth. So if you wanted to take ten out put four and your Bank account and put six into the rough that's cool is the four thousand came out how much are you looking to do specifically, Jerry. What what was your thought to do the is? What is but I mean, how much are we talking about here arm de right now in gaining would be about seven thousand for me. Unfortunately, the amount equal to the R MD cannot go to the Roth IRA, okay? And who is that? Even though right now, I do not have a Roth IRA, am let's say I want to take out more because I have elbow room in my room in the bracket or. Could I can I even open a Roth IRA without being employed. You can then you can convert current. Traditionally you could do it this year for for that matter because you're not that required minimum distribution age in two thousand eighteen so you can do any amount you want from your traditional IRA to a Roth IRA in two thousand eighteen next year. You cannot do the amount equal to the has to come out, but anything in excess of that can go from traditional IRA to Roth IRA. There's no age limit on conversion of assets, except for you cannot convert the required minimum distribution and conversions. Go ahead. I'm sorry. I do completely understand that. But what I was asking. Can I even open rush IRA without being employed? Yes, you don't have to be you have to be employed to contribute new money from your pocket to the IRA world. But you do not have to be employed to open a Roth IRA and convert existing IRA money to Roth IRA. Alleluia? Exactly what I was looking for you, gentlemen. Worth every penny. Every penny. This free radio station brings the. There you go. I wasn't meant that was meant to be a joke. We we're joking right along with you. But make sure you do your first and this year. So you could do it within the next three weeks? Yes, you could this year. But when it comes time for required minimum distribution, make sure you do that. I take care of that. And then anything of above and beyond that, you can convert into the Roth IRA or the professor said I still have about three weeks this year. Yes. To take as much out outside want us. I feel I have Romao room, you know, exactly income, and whatever you take out by the way will lower your RAM D for team. So keep that in mind if you do it before the thirty first of December. Yeah. I this. This this information is absolutely good news. And I will get to it while great. If you have any other questions or need some help on this Jerry hold on. And we'll be happy to talk to you more off the air. Thank you very much for the call. And for the kind words does it this year, it'll reduce our MD? So he's got that going for them. It's good. It's a race that well if you've got room in the bracket converting money this year, it starts to five year clock on earnings if he ever wants to take money out of it, which I don't think he will. He has no other roths. I guess right. But if he's not. He's probably better off either. He just wants it to grow. Yeah. Three is tax efficient as positive. Absolutely. So he does whatever he wants to do this year next year. He does whatever he wants to over our MD. Yes. Make sure you take out the the seven grand. But yeah, you can buy rake you could open a Roth IRA, even if you don't work and convert existing IRA money. There's no requirement you'd be working to open a Roth IRA there's only requirement that you'd be working to contribute new money. Yes. To the Roth IRA Keisha. Keisha? Keisha has to be the issue case. Your versions can be whatever assets are in the IRA. Sure, you can cash them in the cash out and put cash from one of the other new money. That's never been in the IRA tax deferred world has to come into the Roth a with your working be in cash. Well, especially if he if he is in the lowest tax bracket where it may not even car cost him any. I don't know what he his situation is. But take advantage of that. And that's exactly what he wants to do. All right, Jerry. Thank you for the call. Let's move along next to leeann Las Vegas. Hello lee. Jonah professor, thanks for taking my call. I just found a straight how much you're listening audience. Appreciate your wealth of knowledge. Well, thank you. My my question is I was fortunate enough to help my son put down a deposit on the Tom. I I give two hundred fifty thousand. Now, I understand after file a farm. I think it's seven nine with the IRS the gift X form. Yes. Wedding. Does that have to be filed follow with my bracket lower? I I'd have to look up the deadlines. I think it's when you file the other one. I just want to be in compliance with the IRS. So the IRS I mean, are you worth more than eleven million bucks? Not today. Maybe tomorrow. He does live in Vegas. True true. I have heard I don't know. This is a fact, but I've heard accountants say that if if you're worth a million to three million bucks, the IRS really doesn't even want to hear from you because you're never gonna tax non, but to be squeaky clean, you file the seven zero nine, and I think it's the same time. I can look that up during the break. Yeah. I don't. One hundred fifty you yourself have what fifteen thousand fifteen so you could take fifteen off that top. And it's only a hundred and thirty five hundred thirty five you. Are you married or? No, no, I'm without. Okay. All right. Well, anyway, you can certainly take fifteen off the top. So that you know, one hundred ninety five thousand and you have this year. Eleven million something worth of that you can gift or, you know, have left in your estate when you're gone that. You're never going to have to pay taxes on. But. Yeah, seven is a forum. And if that's what you wanna file go right ahead. We can find out I suppose for sure when you're supposed to do it. But I think any which way you do it is all right? Okay. Well, I appreciate their promotion. Chapman. Have a great recap. Thank you you too late. And that's nice nice dad, given one hundred fifty thousand dollars to the sun. I didn't ask if you know, the sun is married. He could give another fifteen fifteen he could give another fifteen of that one fifty taking him down to one twenty that he will report. It does have the same due date as the ten forty. But actually they are filed separately even though they do on the same day. You file them separately? You don't put them in the same envelope. Oh, that's what I'm reading. Arrests instructions. So if you did it if you gave this year, and you wanted to file two seven zero nine you would have would you have to wait till next year. Could you just file at any time? I don't know. Well, I mean, you send it in. I mean, you probably wait till the end of the year. Just in case you made anymore gifts. I suppose. Technically Christmas gifts are gifts. Well, they are. But if you're given more than fifteen thousand dollars while he has given one hundred twenty one person, so he's so he's given one hundred fifty already is he gonna did itemize the dollar amounts for the gifts that he's going to give them for Christmas for them. I I hope that I mean that would be a nice gift in and of itself. I don't give me anything else. He wants to give it to you know, other gifts to other people. He doesn't have that. That's not an issue. Yeah. Hundred and fifty thousand dollars by home. That's that's very nice probably just sit down payments somewhere. Although there are certain places in Las Vegas. One hundred fifty thousand dollars may not get you an entire a mansion, but it can get you something in Las Vegas. There are still there are still some repossess homes or foreclosed homes from a few years ago. Out there where you can get some pretty good deals on that. So once again, though on the gifting we wanna make sure people understand this. And in fact, we're gonna be talking about gifting. I think it's coming up on Monday. Did I say we're talking about there on Monday. You haven't you know? But I think I told you I'll tell you again into after the break, but on the gifting you can give up to this year fifteen thousand dollars to anyone. To any individual you want you can sand. We've said that people can stand in line and just different people can receive fifteen thousand dollar gifts from you. If you happen to be that charitably inclined as long as nobody this year stands in line and collects the second fifteen thousand dollars, you're perfectly fine. No gift tax return record required for that situation. Because nobody received more than fifteen thousand from me. That's it. Fifteen grand is limited. And so if you had money you want to give away stand on a street corner, you didn't want he didn't want Uncle Sam get its myths on it stand out there as I said in the street corner. Start handing out fifteen thousand dollars chunks to people that walked by. But you can't do it to the same person in the same tax year, then it'd be a seven nine situation. Exactly. Okay. So that's what he was talking about. All right. We do have some trivia coming up. We'll tell you again what's happening on this program on Monday. Maybe give you a preview of some of the other topics. We'll be covering next week. Again. Eight seven seven planner our number P L A double N E R coming back with more bucket strategy investing. Being a."