Retirement

  1. The Demise Of The Defined-Benefit Plan

    Experts are making bleak predictions for your post-work years. Be prepared and plan for your future.
  2. Why should I bother creating a budget?

    Creating and using a budget is a valuable tool for all demographics; it's not just for those who need to closely monitor their cash flows from month to month because "money is tight". For people who earn enough income to cover their bills and have a regular monthly surplus, a budget can help maximize ...
  3. Are You Saving Too Much?

    "Spend now! Don't worry about retirement," say some experts. Could they possibly be right?
  4. Pension Law Could Reduce Your Payout

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

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

    How you distribute qualified retirement plan money can affect your taxes and Social Security benefits.
  7. 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 ...
  8. 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.
  9. 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 ...
  10. Substantially Equal Periodic Payment (SEPP): Learn The Rules

    Taxpayers often make costly mistakes with SEPP programs because there is little guidance on what can be done in certain situations.
  11. I made involuntary contributions to a retirement plan while temporarily employed. ...

    Your options depend on the type of penalty that would apply. If the penalty is a surrender charge or another penalty that would apply to an annuity or insurance product, you may want to consider leaving the assets in the plan until the time when the penalty will no longer apply.
  12. Raising Grandchildren A Financial Feat

    Becoming a full-time caregiver again presents many challenges - including making ends meet.
  13. I am the beneficiary of an IRA and a Keogh. Can I combine them into one plan?

    It depends. If you are a "spouse beneficiary" for both the Keogh and the IRA, then you may transfer or roll over the inherited IRA assets to your own Traditional IRA, and you can also roll over the assets from the Keogh to the same IRA.If you are a "non-spouse beneficiary" of the IRA, you must maintain ...
  14. Can I donate stock to charity?

    Giving stock, instead of cash, as a donation can greatly benefit both parties. You will find that most charities, hospitals, schools and other nonprofit organizations will accept stock as a gift or donation. If the stock has increased in value from the time of purchase, the owner can avoid paying the ...
  15. How do I go about opening up a Roth IRA?

    You may open Roth IRAs at most financial institutions, such as your local bank, your credit union, or brokerage firm. You can even establish an IRA online. The process is as easy as completing a one-page document. Most financial institutions may also require that you complete a new account or customer ...
  16. I am 59 (not 59.5) and my husband is 65. We have participated in a SIMPLE IRA with ...

    During the first two years after a SIMPLE IRA is established, assets held in the SIMPLE IRA must not be transferred or rolled over to another retirement plan. Since you have met the two-year requirement, your SIMPLE IRA assets may be converted to a Roth IRA.
  17. I didn't record my Traditional IRA contributions. Is there a website that lists ...

    Visit the Congressional Budget Office's Online Tax Guide, which summarizes IRA contribution limits and phase-out ranges for every year from 1974 onwards. You may also want to ensure that you file Form 8606 for any year in which you made non-deductible contributions to your Traditional IRA.
  18. I withdrew funds from my Roth IRA to contribute elsewhere. How will I be taxed?

    If you close the Roth IRA now and withdraw the balance, you will be taxed on the earnings unless the distribution is qualified. Furthermore, you will pay a 10% early distribution excise tax on the earnings unless you qualify for an exception. The exceptions are listed on page 58 of IRS Publication 59 ...
  19. Can I return funds to my Roth IRA after I have taken it as a distribution?

    Yes. You can roll over the amount to the Roth IRA, or another of your Roth IRAs (excluding inherited Roth IRAs), provided the amount is rolled over within 60 days from when you received the amount and the Roth IRAs were not involved in a rollover during the 12 months preceding the date of the distribution.
  20. I am self-employed and do not need most of my IRA RMD for expenses. Can I reinvest ...

    You can use your required minimum distributions (RMDs) to fund your Roth IRA as a Roth IRA contribution. This is because the source from which you take the cash to fund your IRA can be from any pool of cash that you have. The IRS' requirement is that you have enough taxable compensation to cover the ...
  21. An Overview Of The Pension Benefit Guaranty Corporation (PBGC)

    Find out how this "retirement lifeguard" can save drowning plans, and why it's unlikely to be a long-term solution to the pension problem.
  22. Can I hold non-dollar currencies in my retirement fund?

    Yes. You would need to find a financial institution that can facilitate these currencies in a retirement account. Many are unable to do so, as their systems are not programmed to perform the currency conversion necessary to satisfy IRS tax reporting requirements, which must be done in U.S.
  23. Boomers: Twisting The Retirement Mindset

    This generation must take a whole new approach to post-work planning.
  24. How does online banking assist with budgeting?

    Setting up online banking can make a personal budget easier to manage through the use of multiple accounts or expense categories with the same financial institution (for expenses like utility bills, vacation accounts, retirement funding accounts, etc.).
  25. 401(k) Plans For The Small Business Owner

    If you own a business, this may be the plan for you! Find out about its benefits and eligibility requirements.
  26. Non-Cash Contribution Rules Could Cut Returns

    Higher standards for certain contributions could mean smaller deductions for you.
  27. A Multipurpose Future Planning Tool

    Overfunded variable universal life insurance policies can be an all-in-one financial solution.
  28. Fatal Seduction Of The Municipal Bond Insurers

    Learn how a foray into CDOs and other exotic products ruined an industry's image.
  29. Benchmark To Show Winning Returns

    You can't win if you don't keep score. Read on to learn how to measure your returns.
  30. My old company offers a 401(k) plan and my new employer only offers a 403(b) plan. ...

    It depends. While the regulations do allow rollover of assets between 401(k) plans and 403(b) plans, employers are not required to allow rollovers into the plans they maintain. Consequently, the receiving plan (or employer that sponsors/maintains the plan) ultimately decides if it will accept rollover ...
  31. I own a small business. Can the SBO-401(k) work for me?

    The SBO-401(k) can only be adopted by businesses in which only the business's owners are eligible participants in the plan. The ideal candidate for the SBO-401(k) is an employer who has employees, they do not satisfy both criteria for being included in the plan.
  32. What types of plans allow catch-up contributions?

    Catch-up contributions can only be made to plans with salary deferral features.If you want to make catch-up contributions, you will need to amend your profit-sharing plan to include a salary deferral feature if it does not already have one. Most profit-sharing documentation includes a check-box option ...
  33. 3 Retirement Plan Moves To Make Before Year-End

    If you don't know what must be done before December 31 you may miss opportunities - or even pay penalties.
  34. Can I fund a Traditional IRA, a 403(b) or a Roth IRA using pension money? I'm 56 ...

    Generally, for purposes of contributing to IRAs, 403(b)s and other retirement accounts, compensation is defined as income received in exchange for personal services. This does not include pension income. If you are not eligible to contribute to an IRA or a qualified plan, you may consider other options ...
  35. Get Ready For The Estate Tax Phase-Out

    Changes to federal legislation will affect how your assets are treated once you're gone - be prepared.
  36. Financial Planners: Specialize In Seniors

    Find out how this demographic has all the needs to keep your firm busy year-round.
  37. My uncle died recently. He designated my mother and father as his beneficiaries in ...

    It depends. If the retirement plan is a qualified plan, then the plan administrator would refer to the plan document to determine who the designated beneficiary is. The plan document explains the rules to which the qualified plan is subjected. Generally, qualified plans provide that the surviving spouse ...
  38. How long does an IRA beneficiary have to take an RMD after the IRA holder dies?

    Let's suppose the IRA holder, we'll call him Tom, dies in 2008. If Tom was required to take a required minimum distribution (RMD) for 2008 (and did not withdraw that amount before he died) his beneficiaries are required to withdraw that amount by December 31 of 2008.
  39. House Your Retirement With Self-Directed Real Estate IRAs

    Investors are now able to invest directly in real property, mortgages and other assets.
  40. I have conservative views on investing. How should I go about investing in a Roth ...

    Most financial services institutions - such as banks, brokerage firms, credit unions and mutual fund companies - offer Roth IRAs. Establishing a Roth IRA with your financial institution of choice may be as simple as completing a one-page document (your Roth IRA adoption agreement) and depositing your ...
  41. Are there tax penalties for closing my Roth IRA account?

    You can close your Roth IRA account without negative consequences if your total account balance is less than the accumulated amounts you deposited as regular contributions. Furthermore, if you distribute the total balance, you may be able to deduct the losses on your tax return.
  42. What is the five-year waiting rule for Roth IRAs?

    There are two five-year waiting periods that apply to Roth IRAs. However, in both cases, the waiting period for a Roth IRA begins on the first day of the applicable calendar year. How this rule applies to you depends on the circumstances. To clarify, let's look at the rule in detail: For the five-year ...
  43. Can I have a self-directed IRA or Roth IRA using the forex market?

    In the U.S., one of the best ways for individuals to protect their income from taxes and save for retirement is by using an individual retirement account (IRA). IRAs come in many forms that can be tailored to specific individual preferences. However, significant rules and regulations have been developed ...
  44. Are there special benefits for U.S. armed forces personnel?

    If you are a member of the military, you may be afforded special tax benefits that might not be available to other taxpayers. These include the following:Automatic ExtensionIf you are serving in a combat zone, you receive an automatic extension for filing your tax return, paying taxes, filing claims ...
  45. Can I return funds to my Traditional IRA after taking a distribution?

    If you take a distribution from your Traditional IRA, you can roll over the amount to the same Traditional IRA or another Traditional IRA, provided the following requirements are met: The rollover is completed within 60 days of receiving the distribution.
  46. 10 Retirement-Wrecking Moves

    Don't let these common mistakes put a crack your nest egg.
  47. High-Risk Retirement Portfolio Not Always Taboo

    Find out how much risk your portfolio can take and whether your money will last.
  48. Can I leave my pension to my spouse when I pass away?

    In most cases, an individual with a pension plan should have the option to leave at least a portion of his or her pension to a surviving spouse and/or child. Oftentimes, this can be done by purchasing an option on the pension plan. However, depending on the specifics and conditions mentioned in the plan, ...
  49. Top 6 Myths About Social Security Benefits

    Misinformation on retirement benefits is common. We'll set the record straight.
  50. Business Owners: A Guide To Qualified Retirement Plan Loans

    Thinking of adding a loan feature to your company's plan? Here's what you need to know.
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