Retirement

  1. How can I reduce the taxes on my inherited retirement assets?

    Many beneficiaries miss out on one of the most significant tax deductions for inherited retirement-plan assets; the income with respect to decedent (IRD) deduction. If you inherited retirement plans assets, check with the person who filed the decedent's estate return, to determine whether the decedent's ...
  2. Roth Vs. Traditional IRA: Which Is Right For You?

    To answer this question, you need to consider several of the factors we outline here.
  3. I recently and accidentally established a Roth IRA for my spouse instead of myself ...

    Don't feel too badly. We all make mistakes. The good news is that you may have some time to make the proper corrections.The IRS provides you with an automatic six-month extension to correct excess contributions if you file your federal tax return by the April 15 deadline.
  4. My wife and I both converted our Traditional IRAs to Roth IRAs in Dec 1998 and have ...

    You and your spouse each qualify for a penalty-free distribution of up to $10,000 for the purchase, acquisition or construction of your principal residence or first home. By IRS standards, you are a first-time homebuyer if you did not own an interest in a principal residence during the two years prior ...
  5. Earnings within a Roth IRA are tax free, so are these earnings included in the modified ...

    There are two possible answers to this question, depending on whether or not the distribution from the Roth IRA is qualified.Earnings on investments within a Roth IRA are neither subject to income tax nor are they included in the IRA owner's income. Instead, they accumulate on a tax-deferred basis and ...
  6. Are the deferred earnings in a SIMPLE IRA subject to FICA taxes?

    While salary deferral contributions to a savings incentive match plan for employees of small employers (SIMPLE) IRAs and SIMPLE 401(k)s are not subject to income tax withholding, they are subject to tax under the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA) and ...
  7. Are my IRAs secure against possible liens?

    Your IRA is protected from bankruptcy up to $1 million. However, in all other cases, state law determines whether any protection exists and the level of protection.It is best to consult with a local attorney to determine the types of protection offered in your state.
  8. I have several CDs in my IRA with different maturities. Can I roll them over to another ...

    The limitation on rollovers applies on a per IRA basis. In general, if an IRA is involved in an IRA-to-IRA rollover, it cannot be involved in another IRA-to-IRA rollover within the next 12-month period. However, this does not prevent the IRA from being moved to another IRA as a trustee-to-trustee transfer.
  9. Bear-Proof Your Retirement Portfolio

    Find out how to protect your assets so you can live out your dreams in style.
  10. I participate in a profit-sharing plan at work. If I retire at age 62, will I be ...

    The money in your profit-sharing account will be taxable when it is withdrawn from the account. You may leave the money in the plan (if the plan allows it) or roll over the balance to an IRA.Most financial planners would recommend that you do not leave the funds in the profit-sharing plan after you leave ...
  11. Healthy Survival Guide For Sandwiched Boomers

    Caring for children and parents is squeezing baby boomers' finances. Find out how to cope.
  12. 5 Retirement Plan Moves To Make Before Year-End

    Make sure all your loose ends are tied with these simple reminders and tips for your plans.
  13. Plan To Retire Rich

    Don't just hope for the best - develop a course of action to achieve your goals.
  14. Are You Buying Annuities Or Mutual Funds?

    Investing a client's money in variable annuties is becoming a target for criticism.
  15. Rejuvenate Your Life And Career With A Sabbatical

    Sometimes a one-week vaction isn't enough. Learn the pros and cons of an extended break.
  16. The 5% Solution To Financial Freedom

    How can you save the recommended 10% of your income? We'll show you how to get there.
  17. 401(k) Debit Cards: Taking A Swipe At Your Retirement Savings

    This is just another more convenient way to borrow from your plan. But at what cost?
  18. 11 Things You May Not Know About Your IRA

    These little-known features will help you get the most out of your retirement savings.
  19. I do not want to totally get out of my retirement 401(k), but I want to take 72(t) ...

    The exact amount of the 72(t) distributions that you are eligible to take will be determined by your age and the IRS published interest rate for the month the calculation is done. Generally, a plan participant who is separated from service (no longer employed by the employer that sponsored the plan in ...
  20. What is the best retirement plan option for a physician with her own practice, employees ...

    It is very unlikely that you will find a qualified plan or an IRA-based plan that will allow the employer to exclude other employees, as all employees must be allowed to participate in the plan when they meet the eligibility requirements. An alternative is to include strict eligibility requirements in ...
  21. Can a creditor seize my retirement savings?

    Whether a creditor can seize your retirement savings will depend on the type of account in which you are holding your retirement savings and the creditor that is seeking repayment.If your creditor is a government organization, such as the IRS, then none of your accounts, not even your 401(k) plan or ...
  22. Is my 403(b) account owned by me or by the institution?

    You are the owner of your 403(b). The financial institution just holds the assets on your behalf and facilitates your transactions.For the assets they hold on your behalf, financial institutions generally provide certain protection against their own failure.
  23. Skipping-Out on Probate Costs

    Don't let bad estate planning lead to unnecessary costs and stress for your inheritors.
  24. Can the non-spouse beneficiary of an IRA name a successor beneficiary?

    Whether the beneficiary of an individual retirement account (IRA) can name a successor beneficiary (second generation beneficiary) is determined by the provisions of the IRA plan document. In the last few years, most IRA plan documents that did not allow this option have been amended to allow beneficiaries ...
  25. I inherited a Roth IRA. What are my options for taking distributions from the account?

    It depends. Generally, if you are the spouse of the Roth IRA owner and you are the sole primary beneficiary, you may treat the Roth IRA as your own. This means that you would not need to take distributions unless you wanted to do so.If you are not the surviving spouse of the Roth IRA owner, your options ...
  26. The Simple Tax Math Of Roth Conversions

    Roth conversions will be available to affluent taxpayers in 2010. Will you benefit?
  27. I will be receiving monies from a QDRO executed pursuant to my divorce. I would like ...

    There are several issues to consider: The early distribution penalty - Assets distributed from a qualified plan in accordance with a qualified domestic relations order (QDRO) are exempted from the 10% early-distribution penalty. If you will be using any portion of the assets immediately, it may ...
  28. Can a person who is retired continue to fund an IRA?

    For the purposes of contributing to an IRA, compensation (i.e. earned income) does not include income from a pension, an annuity or Social Security. Generally speaking, you must have earned the income by performing services (i.e. work) or received it as alimony and/or a separate maintenance for it to ...
  29. If an employee covered by a SIMPLE leaves his employer within the two-year period ...

    During the first two years after the SIMPLE IRA is established, assets held in the SIMPLE must not be transferred or rolled to another retirement plan. This two-year period, to which you refer in your question, begins the first day the employer deposits a contribution to the SIMPLE.
  30. I just learned that my 2004 and 2005 Roth IRA contributions are not allowed because ...

    The 2004 excess amount to your Roth IRA would have to be removed by October 15, 2005, to avoid the 6% penalty (assuming that you filed your tax return or filed for an extension on April 15, you receive an automatic extension to October 15, 2005 to remove excess amounts).
  31. Can I still set up an SEP if one of my employees refuses to participate?

    You can establish the SEP IRA, even if the employee refuses to participant. However, you would need to establish an IRA for the employee, assuming he or she is eligible, and deposit his or her contribution to the account. You would first need to check with the financial institution to determine whether ...
  32. What is the difference between a Keogh and an IRA?

    The Keogh plan, or HR10, is an employer-funded, tax-deferred retirement plan designed for unincorporated businesses or self-employed persons. The Keogh plan, named after U.S. Representative Eugene James Keogh, was established by Congress in 1962 and expanded into the Economic Recovery Tax Act of 1981.
  33. Is it easier to save for retirement if you start earlier in life? Can I make up for ...

    In general, the earlier you start saving for retirement, the easier it will be to afford, given the number of financial obligations that tend to be incurred at that later period in your life. A closer look at the interesting aspects of compounding will illustrate how, in the retirement game, the early ...
  34. How To Evaluate Pension Risk By Analyzing Annual Costs

    Learn how to assess whether a company's pension plan is posing more risks than what the footnotes indicate.
  35. Squeeze A Greenback Out Of Your Latte

    Stick to your budget every day with these 15 simple tips.
  36. Top 7 Social Security Myths: Exposed

    A look at several myths that surround Social Security benefits.
  37. Changes In Tax Legislation And Regulation

    Keeping on top of these amendments can help you avoid penalties and take advantage of benefits.
  38. Pension Law Could Reduce Your Payout

    Discover how this act negatively affects your lump-sum withdrawals.
  39. No Need To Rush End-Of-Career Retirement Planning

    Your retirement is fast approaching, but your retirement plan needn't change as quickly.
  40. Asset Distributions A Key Consideration For Retirees

    How you distribute qualified retirement plan money can affect your taxes and Social Security benefits.
  41. My company is the trustee of our 401k plan (which has 112 participants). What are ...

    The answer may vary depending on the plan provider and the provisions of the plan document. For questions relating to a specific issue, the employer should consult with an ERISA attorney, who will be able to make an appropriate recommendation. An ERISA attorney may consider cases, such as that involving ...
  42. Can an employer adopt a different type of retirement plan for each employee?

    Generally, any qualified retirement plan or IRA-based plan adopted by an employer must cover all eligible employees. Failure to do so could result in plan disqualification. For example, suppose that a partnership company wishes to incorporate an IRA for its partners and a 401(k) plan for the employees.
  43. I failed to distribute an inherited 401(k) that was found in an audit. What happens ...

    The party responsible for paying the penalty in such cases will be the beneficiary of the 401(k) plan. You may want to start by finding out who the beneficiary is, if you have not already done so.The next step would be to find out the distribution options that the beneficiary was required to use to withdraw ...
  44. I am a teacher in a public school system and I don't presently have a 403(b) plan, ...

    If you establish a 403(b) account under the school's 403(b) plan, you may roll the Traditional IRA assets to the 403(b) account. As you may know, the rollover from the Traditional IRA to the 403(b) cannot include after-tax amounts or amounts representing required minimum distributions.
  45. Upon my death, will the beneficiaries of my IRA be compelled to take the entire amount ...

    It depends. If the beneficiary of your IRA is your spouse, he or she will be eligible to transfer the amount to his or her own IRA, from which distributions are not required until age 70.5. If the beneficiary is not your spouse, then the options available may be determined by the provisions in the IRA ...
  46. Can I give stock as a gift?

    Stocks, bonds or any other securities can be transferred as gifts. Giving the gift of stock also has benefits for the giver. If the stock has appreciated in value, the holder can avoid paying the capital gains tax by giving it as a gift. There are two methods in transferring the ownership of a stock, ...
  47. It's December - Do You Know Where Your IRA Statements Are?

    Don't discard these important documents with your junk mail - they may affect your taxes.
  48. The Rap On Wrap Fees For Retirement Accounts

    If your retirement account is managed under a wrap fee program, you need to consider whether you should pay the fee out of your retirement account balance or out-of-pocket.
  49. Pursuing Alpha In A Well-Diversified IRA

    This strategy is not as complex as some investment gurus would like you to believe.
  50. What are the "certain requirements" that must be met for substantially equal periodic ...

    For substantially equal periodic payments (SEPPs), the distributions would occur from your IRA after you rollover the assets. (SEPPs are also allowed from qualified plans after the participant has separated from service - this does not apply to you at this time.) There are no mandatory withholding requirements ...
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