It feels great skipping out on taxes and saving towards retirement by contributing to an IRA, but not so much when it comes time to withdraw that money – and pay those taxes. Hefty required minimum distributions (RMDs) can push you into a higher income bracket, which means paying even more taxes. Sound like you …
Continue reading “4 Reasons to Consider Making a Qualified Charitable Distribution (QCD)”
Anyone approaching age 72 or older, with a qualified retirement plan, needs to know about RMDs. An RMD is a Required Minimum Distribution, a forced withdrawal from a qualified retirement account with funds that have never been taxed. Examples of these accounts include IRAs, 401(k)s, 403(b)s, or SEP IRAs. RMDs were subject to different rules …
In a year which many thought would never end, miraculously we have found ourselves in December. Before the clock strikes midnight on New Year’s Eve, there are some easy steps to take on your own to prepare yourself for the upcoming Tax Season. While we highly recommend turning to trusted tax professionals for your tax …
Continue reading “Do It Yourself Year-End Tax Planning Tips”
The SECURE Act is the largest piece of retirement legislation to pass Congress since the Pension Protection Act of 2006. Signed into law at the end of December 2019, the SECURE Act went into effect on January 1st, 2020. But that quick turn-around has left many Americans wondering how the bill will affect their retirement …
Continue reading “How will the SECURE Act impact my retirement?”
1. Missed Deadlines What it is If you don’t take your RMD or take it after the December 31st deadline, you will be subject to a 50% penalty. That means half of your withdrawal goes directly to the IRS. What you can do about it You have the option to appeal the penalty for a …
Continue reading “4 Common RMD Mistakes You Might Be Making”
1. Max Out Your Contributions There’s still time to max out the contributions on your retirement account. Making the maximum contribution to your IRA or 401(k) boosts savings and reduces your taxable income. In 2019, contribution limits increased to $19,000 for 401(k)s and $6,000 for IRAs and Roth IRAs. If you’re over 50, you can …
What is a Stretch IRA? A Stretch IRA is an inherited IRA account where the beneficiary has chosen to “stretch” taxable distributions over the course of their own life expectancy. When an IRA is inherited by someone other than the original owner’s spouse (called a “non-spousal beneficiary”), this person can either take advantage of the …
Continue reading “Stretch IRA: What It Is and Who Should Consider It”
One in four Americans say they will never retire, according to a recent poll from the Associated Press-NORC Center. Their number one motivator? Money–or lack thereof. However, we know that most older workers will need to stop working at some point due to injury, illness, layoffs, or family responsibilities, and they’ll need a solid retirement …
The SEP IRA is the redheaded stepchild of retirement accounts. Less common than traditional and Roth IRAs and lacking the corporate glamor of a 401(k), SEP IRAs are a frequently forgotten, yet highly effective path to retirement security. Could a SEP IRA be right for you? What is a SEP IRA? Part of the …
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