Why You Will Eventually Be Forced to Withdraw Money from Your Portfolio
Nobody likes surprises, especially when it comes to the subject of money! When I work with mid-life professionals thinking about career transition and/or retirement, they are often surprised to learn that they will eventually be forced to withdraw money from their Traditional IRAs and Traditional 401(k) plans later in [...]
Key Retirement and Tax Numbers for 2022
Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2022. Estate, Gift, and Generation-Skipping Transfer Tax The annual gift tax exclusion (and annual [...]
Financial Strategies To Consider Before You Stop Working
When it comes to planning for retirement, savers often try to allocate as much money as possible in employer-sponsored retirement plans and IRAs. And why not?! The tax deferral features of these accounts may provide years of attractive growth without paying Uncle Sam any taxes until the time you [...]
Is Now a Good Time to Consider a Roth IRA Conversion?
This year has been challenging on many fronts, but one financial opportunity may have emerged from the economic turbulence. If you've been thinking about converting your traditional IRA to a Roth, now might be an appropriate time to do so. IRA Conversion Basics Roth IRAs offer tax-free income in [...]
The SECURE Act Offers New Opportunities for Individuals and Businesses
The SECURE Act (Setting Every Community Up for Retirement Enhancement Act) is major legislation that was passed by Congress as part of a larger spending bill and signed into law by the president in December. Here are a few provisions that may affect you. Unless otherwise noted, the new rules [...]
Qualified Charitable Distributions: Using Your IRA to Give from the Heart
The Tax Cuts and Jobs Act roughly doubled the standard deduction ($12,200 for single filers and $24,400 for married taxpayers filing jointly in 2019) and indexed it for inflation through 2025. As a result, far fewer taxpayers will itemize deductions on their tax returns, and some people may be disappointed [...]
Should You Consider a 2016 Charitable Contribution from Your IRA?
Yes, if you qualify. The law authorizing qualified charitable distributions, or QCDs, has recently been made permanent by the Protecting Americans from Tax Hikes (PATH) Act of 2015. You simply instruct your IRA trustee to make a distribution directly from your IRA (other than a SEP or SIMPLE) to a [...]
Watch Out for These Six Potential 401(k) Rollover Pitfalls
You're about to receive a distribution from your 401(k) plan, and you're considering a rollover to a traditional IRA. While these transactions are normally straightforward and trouble free, there are some pitfalls you'll want to avoid. 1. The first mistake some people make is failing to consider the pros and [...]
Earn Too Much for a Roth IRA? Try the Back Door
Roth IRAs, created in 1997 as part of the Taxpayer Relief Act, represented an entirely new savings opportunity--the ability to make after-tax contributions that could, if certain conditions were met, grow entirely free of federal income taxes. These new savings vehicles were essentially the inverse of traditional IRAs, where you [...]
Use this Primer to Evaluate a 2015 IRA Contribution
The combined amount you can contribute to your traditional and Roth IRAs remains at $5,500 for 2015, or $6,500 if you'll be 50 or older by the end of the year. You can contribute to an IRA in addition to an employer-sponsored retirement plan like a 401(k). But if you [...]