Maximizing Your Social Security Benefits Retirement and Social Security are inextricably linked. Not only did Social Security help establish the official U.S. retirement age at 65, it also provides a significant portion of today’s retirees’ incomes. Some of the earliest company pension programs began paying benefits at age 65.1 The economics made sense since life […]
When you created your Roth IRA account, you might have been under the impression that the money you take out of it will always be tax free. Unfortunately, there are exceptions to this rule that could leave you surprised and frustrated once you receive your tax bill. Roth IRA distributions can consist of contributions, converted […]
Spousal IRA beneficiary planning can get confusing, and if you’re a widow who has inherited an IRA from your spouse, you may unsure of how to handle the assets. You can remain a beneficiary of the account, which would allow you take penalty-free distributions before you reach age 59½, or you can choose a spousal […]
Once you reach age 70½ , the government requires that a specific minimum amount be withdrawn from your retirement account each year. If you miss the deadline or don’t take enough, Uncle Sam could hit you with a 50% penalty! Did you forget to take a required minimum distribution (RMD) from your retirement account? Unsure […]
In a 2002 interview with Mike Wallace, former First Lady Nancy Reagan said she often reread the love letters written by her husband, former President Ronald Reagan. The letters, which had sustained and enriched their relationship, helped Mrs. Reagan reconnect with her husband and remember the man he was before Alzheimer’s claimed him.1 An excerpt […]
Spousal beneficiary mistakes are common, and making financial decisions in a time of grief can be especially challenging. Factors such as your age and income needs should be considered prior to making any changes to an inherited spousal IRA. For more key considerations, click here to download “Avoiding Spousal Beneficiary Mistakes in 5 Easy Steps” […]
If you’ve changed your mind about your 2016 Roth conversion for any reason, you can still “undo” it with a Roth recharacterization. You’ll need to move quickly, though, as the deadline for recharacterizing 2016 conversions is fast approaching. Roth recharacterizations provide investors with a “do-over” option, which isn’t common in the tax world. Before making […]
In the midst of back-to-school season, you may be considering helping a child, grandchild or loved one with the cost of higher education. Record-high tuition costs have many families exploring the various options available to them including 529 plans and Coverdell accounts, but many fail to realize that a Roth IRA could also be a […]
If you have more than one person in your life that you’d like to include in your legacy plan, you may be considering listing multiple IRA beneficiaries. While this option is a great way to leave your assets to multiple loved ones, it can also leave your beneficiaries in a messy situation if not set […]