The Great 8 IRA Mistakes that WILL Cost You Money, Ep #110

<p>I see people making the same IRA mistakes over and over again because they just don’t know enough about IRAs. That’s why I advise anyone to work with a Certified Financial Planner (CFP)—even if it’s not me. Until you can do that, do <em>everything</em> you can to avoid these 8 great IRA mistakes with your retirement portfolio. If you own an IRA—traditional or Roth—this is a can’t-miss episode of the Retirement Made Easy Podcast. </p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[1:04] Submit a question at RetirementMadeEasyPodcast.com!</li> <li>[3:14] Don’t forget to check out the 3 Steps to Retirement Planning</li> <li>[5:01] Mistake #1: Neglecting the spousal IRA opportunity</li> <li>[7:04] Mistake #2: 401k and IRA Required Minimum Distributions (RMD)</li> <li>[9:33] Mistake #3: Forgetting about Net Unrealized Appreciation</li> <li>[11:18] Mistake #4: Forgetting to update the beneficiaries on your IRA</li> <li>[13:47] Mistake #5: Listing a trust as the beneficiary of an IRA</li> <li>[15:28] Mistake #6: Improperly executing a Roth conversion</li> <li>[16:40] Mistake #7: Contributing to a Roth IRA when you’re not eligible </li> <li>[17:52] Mistake #8: Doing an indirect rollover with your IRA</li> </ul> <h2>Mistake #1: Neglecting the spousal IRA opportunity</h2> <p>Did you know that if you are a non-working spouse, there <em>is</em> a spousal IRA? If you’re over 50 and the working spouse makes over $14,000 per year, he or she can contribute $7,000 to an IRA—and you can too. You can set up a Roth or Traditional IRA and contribute up to $7,000 per year. Many couples aren’t aware of this possibility.</p> <h2>Mistake #2: Required Minimum Distributions (RMD) </h2> <p>Once you turn 72, you have to start taking required minimum distributions from your 401k, Roth 401k, or traditional IRA. If you have three old 401ks from previous employers, you have to take a RMD from <em>each</em> 401k. </p> <p>The rules are different for IRAs. If the RMD is $1,000 a piece from each IRA, you can tak