Ed Slott: 7 RMD, IRA and Estate Planning Points for 2024

The simple truth is that the issues that come into play when financial advisors and their clients are working to achieve tax optimization in the retirement income planning process are monumentally complex. That's why it's no surprise to see even publications like The New York Times and Kiplinger's make mistakes now and again when they delve into such topics, says Ed Slott of Ed Slott & Co. Speaking last week during a webcast, Slott noted how the Times recently had to issue a correction after a printed article misstated the timing of required minimum distributions from tax­-advantaged retire­ment accounts for people who turned 73 in 2023. As Slott emphasized and as the correction stipulated, such savers' first required with­drawal was due April 1, 2023, with the second due by Dec. 31, 2023. In other words, the deadline for their first withdrawal is not April 1, 2024, as the article originally (and incorrectly) stated. Slott said the confusion is understandable because the calculation and timing of RMD has been something of a nightmare in the past few years thanks to repeated changes in the law and the publication of interim interpretive regulations. Adding to the challenge is the fact that RMDs are just one of many issues to consider in the income planning process, with big questions to be asked about the potential role of Roth conversions, rollovers, charitable distributions, asset allocation decisions and more. "I know a lot of advisors like to say they don't provide tax advice, but if you touch an IRA, that means you're doing tax planning," Slott said. "If you advise on a Roth conversion or an IRA rollover, you're doing tax planning. If you refuse to face the complexity and advise your clients on these issues, somebody else will step up, and they will get all that business." See the slideshow for a selection of highlights from Slott's latest tax-focused presentation. Some of the information presented is especially relevant ahead of tax day — Monday, April 15.