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IRA

Pension Payout: Annuitize or Rollover (Cash)?

If you happen to be in one of those jobs (there can only be a handful left at this point, right?) that has a traditional pension plan, you may be faced with an important decision. When you’re ready to retire (did I just hear angels singing?) – you have to decide if you’ll take annuitized payments, or if you cash out the plan and roll it over to an IRA. These “traditional” pension plans are referred to as defined benefit (or DB) plans – meaning that your benefit is defined as a determined amount. This benefit is usually based on a combination of your longevity in the job, plus your ending salary. You’re probably familiar with these computations: an example is a pension that is 2% per year of employment, multiplied by the average of your final five years of salary. So if you worked at a job for 25 […]

Medicaid and Retirement Accounts

How are retirement accounts counted when determining eligibility for Medicaid? It’s an important point to consider when planning for long-term care.

Roth IRA Eligibility

What are the eligibility requirements for Roth IRA contributions? There are limits based on your income level that you need to be aware of.

IRD from an IRA

IRD from an IRA can be pretty confusing – but it can also make a huge difference in the taxaxtion of distributions from an inherited IRA.

IRA Inheritance – Not Taking Timely Distributions

What happens when you forget to take the required distributions from an IRA inheritance?

Splitting Inherited IRAs

Splitting an inherited IRA into multiple IRAs is important to maintain your own distribution plan after the death of the original owner.

TWO 5-year Rules for Roth IRAs

There are two 5-year rules that apply to Roth IRAs. Depending on the circumstances, one or the other may apply to your account and distributions from it.

IRS Private Letter Rulings, Revenue Rulings and Revenue Procedures

For specific guidance on how the IRS will handle a particular situation, they issue Private Letter Rulings, Revenue Rulings and Revenue Procedures.

Problems and (proposed) Solutions for 401k Plan

The 401k plan takes the blame much of the time for the problems individual investors are facing. But maybe adjusting the 401k plan is the real

The Equity-Indexed Annuity

Any time there’s a down market going on, you’re more likely to get a sales pitch for an equity-indexed annuity. There can be upsides, but mostly downsides.

Roth IRA Conversion Strategy – Fill Out the Bracket

One strategy for Roth IRA conversions is known as “fill out the bracket”. This article gives an explanation along with examples.

You can’t deduct IRA losses any more

Prior to 2018, you had the ability to deduct IRA losses from your income via Schedule A. As of the passage of TCJA, this deduction is no longer available.

IRAs and Blended Families

How does an IRA fit in with your estate planning when there are blended families? Blended families can complicate the planning process.

How a 401k Contribution Affects Your Paycheck

Do you know how a 401k contribution affects your paycheck? Your take-home won’t go down by the same amount that you defer into the 401k.

How to Resolve an Over-Contribution to Your IRA

What happens when you have an over-contribution to your IRA? Are there consequences? How can you resolve this situation without excess penalty?

Don’t Forget the Saver’s Credit on Your Tax Return

The IRS provides a way to make your saving activities pay off more for you, by way of the Saver’s Credit. If you are eligible, it’s a great benefit.

Don’t Invent Income!

It may be tempting to invent income for a child, such as paying them to do the dishes, in order to qualify for a Roth IRA contribution. Don’t do it!

IRA Options for a Surviving Spouse Under Age 59 1/2

What options are available for distribution of an IRA if you’re a surviving spouse who is under age 59½? You have 3 options…

Withholding and Social Security Benefits

If your Social Security benefit is being taxed, you may need to look at your withholding to make sure you’re not hit with a penalty at tax time.