Retirement

  1. Once substantially equal periodic payments (SEPP) of an IRA have started, is the ...

    Typically, if you withdraw assets from an IRA or a qualified retirement plan sponsored by your employer while under the age of 59.5, you may owe ordinary income tax on these amounts, plus an additional 10% early-withdrawal penalty. However, you can avoid the early-withdrawal penalty by taking assets ...
  2. I am only 17 years old. I don't have a job or pay taxes. Can I contribute to an IRA? ...

    You must have earned income (eligible compensation) to be eligible to contribute to a Roth IRA. Individuals who are eligible to establish an IRA, but are under the age of majority as determined by their state of residence, may need to have a parent or legal guardian complete and sign all related documents.
  3. What's the difference between a savings account and a Roth IRA?

    A savings account is an all-inclusive term , which includes IRAs and regular ( non-retirement) savings. A Roth IRA is a savings account in which earnings accrue on a tax-deferred basis, but are tax free if distributions are qualified. In a regular savings account, earnings are added to an individual's ...
  4. Is there a limit on how much I can move from my IRA to my Roth IRA?

    There is no limit on the amount that can be converted from your Traditional IRA to your Roth IRA. As you may already know, your modified adjusted gross income must be $100,000 or less and your tax filing status cannot be married filing separately, in order for you to be eligible for a Roth IRA conversion.To ...
  5. Common Risks That Can Ruin Your Retirement

    These unexpected bumps can sideline your post-work plans and prevent you from riding out your assets.
  6. Tax-Free Accounts Make Saving A Snap For Canadians

    In 2009, the Canadian government began allowing citizens to save more tax-free dollars than ever.
  7. Failing Health Could Drain Your Retirement Savings

    You may not be able to prevent illness, but it doesn't have to infect your savings.
  8. 3 Life Events That Can Ruin Retirement Plans

    Death, divorce and loss of income can leave retirees reeling. Learn how to prepare.
  9. Health problems caused me to take my RMD after the deadline. Can I appeal my case ...

    When you missed your required minimum distribution (RMD), you should have sent in a letter of explanation and filed IRS Form 5329 with your tax return. If you did not do so, you will still need to file your Form 5329 and attach the letter of explanation.The letter should include an explanation of why ...
  10. Run Your Personal Finances Like A Business

    The principles that contribute to success in business can also help you achieve your financial goals.
  11. I'm a teacher. Which is better for me, a 401(k) or 403(b)? What is the difference? ...

    The first step is to check with your employer regarding any retirement plan(s) it provides for employees, as you can only participate in a plan sponsored by your employer. As an employee, you are not allowed to adopt any employer sponsored plan, including 401(k) and 403(b) plans.
  12. I am a first-time home buyer. If I take a distribution from my 401(k) to purchase ...

    As you may already know, you must meet certain requirements, outlined in the 401(k) plan document, to be considered eligible to receive a distribution from the plan. Your employer or plan administrator will provide you with a list of the requirements.Amounts withdrawn from your 401(k) plan and used towards ...
  13. I have just been laid off. Can I use my 401(k) for living expenses now and report ...

    Any amounts withdrawn from your 401(k) plan must be treated as ordinary income for the year the amount is distributed from your 401(k) account. Consider the following: If any portion of the withdrawal is rollover eligible, the plan administrator must withhold 20% for federal taxes if the amount ...
  14. 3 Steps To Take If You Miss Your RMD Deadline

    If you fail to take the required minimum distribution from your retirement account, you need to take proper steps.
  15. If an individual still has his or her former spouse as the beneficiary of an IRA, ...

    It depends. Generally, divorce does not effectively change a beneficiary designation unless the divorce decree makes a stipulation to change the beneficiary. It could be argued that the individual retirement account (IRA) owner wants the former spouse to remain the beneficiary of this IRA.
  16. How do my siblings and I receive inherited pension benefit payments from our deceased ...

    Generally, the provisions of the plan document determine the distribution options available to beneficiaries of retirement plan assets. From a regulatory perspective, you are allowed to distribute the assets over the life expectancy of the oldest sibling.
  17. Distribution Rules For Inherited Retirement Plan Assets

    If you've recently inherited a retirement plan, you must get to know the rules for distributing the funds.
  18. What are the income limits for Roth IRA contributions?

    The 2007 and 2008 income limits for Roth IRA contributions are as follows: Situations 2007 2008 Individuals who are married and file a joint tax return $166,000 $169,000 ...
  19. My Traditional IRA has been converted to a Roth IRA. Can I still make a qualified ...

    If you converted the funds less than five-years ago, you will not be able to meet the qualified distribution requirements. However, the amount you distribute for use toward the acquisition of a first home will not be subject to the 10% early-distribution penalty.
  20. I'm an 80 year old making increasing required minimum distribution (RMD) tax payments. ...

    First, some background information: the tax treatment of a Roth IRA distribution depends on whether or not the distribution is qualified. Qualified distributions from Roth IRAs are tax and penalty free, but non-qualified distributions may be subjected to tax and an early-distribution penalty.
  21. Can I add my higher income spouse's name to my Roth IRA in order to raise our contribution ...

    IRS rules prevent you from maintaining joint Roth IRA accounts. However, you may accomplish your goal of contributing larger amounts if your spouse establishes his or her own IRA. Please note, however, that if your tax filing status in 2007 is married filing separately, you are eligible to contribute ...
  22. What does the Pension Protection Act of 2006 say about charitable contributions?

    According to the Pension Protection Act of 2006 (PPA), you can make a distribution from your IRA payable to a charity. A distribution to a charity is not taxable to the IRA owner if the charity satisfies the specifications as described under PPA and the distribution occurs after the IRA owner reaches ...
  23. I want to roll over a portion of my retirement plan with my employer and I have been ...

    This is based on the rules that an individual can roll over a portion of his or her retirement plan balance, rather than rolling over the entire balance. According to the rules, if an individual rolls over only a portion of his retirement account balance, the portion that is rolled over is deemed to ...
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  25. Can high-income earners deduct yearly defined-benefit plan contributions of over ...

    At a very high income level (say from $300,000 plus per year), you may be able to contribute and deduct the $100,000 contribution each year, or possibly more. However, as you may already know, defined-benefit plans involve complex calculations and usually require the assistance of a competent plan administrator ...
  26. Making Spousal IRA Contributions

    Eligibility requirements, contribution limits and tax deductions all change with one little ring.
  27. New Retirement Plan Limits For 2011

    New changes to the law can have a huge impact on your nest egg.
  28. 6 Ways To Maximize The Value Of Your 401(k)

    From matching employer contributions to proper asset allocation, we'll tell you how to get the most out of your plan.
  29. Capital Gains Tax Cuts For Middle Income Investors

    Find out how TIPRA plans to slash taxes for those in the 10-15% tax bracket.
  30. The Gatekeepers: Consultants Hold The Key

    Institutional investment consultants help match up asset managers with large institutions.
  31. Bear Spray For Your 401(k)

    You can defend your retirement savings from the ravages of a bear market. We'll show you how.
  32. I've heard that workers who don't roll over their 401(k)s after retiring face some ...

    I am not sure to which government regulation your contact was referring. However, here is what I can tell you. In 2002, the IRS issued final required minimum distribution (RMD) regulations affecting the options available to beneficiaries of retirement plan assets.
  33. If a company undergoes an acquisition can an employee withdraw 401(k) funds tax free?

    Although the participant may be eligible to withdraw the funds if a plan is terminated as a result of an acquisition or other similar transaction, this does not mean that the 10% penalty will be waived. However, the participant would qualify for an exception if he/she meets any of the requirements as ...
  34. Strategic Ways To Distribute Your RMD

    We give you some tips on preserving your nest egg in the face of unavoidable withdrawals.
  35. 5 Things To Consider Before Late-In-Life Marriage

    Waiting to marry has become the norm, but do you know what to consider before saying "I do"?
  36. Does the five-year rule apply if a non-spouse inherits an IRA after the required ...

    The five-year rule applies only when the IRA owner dies before the required beginning date (RBD). If the IRA owner dies after the RBD and did not satisfy the required minimum distribution (RMD) for the year of death, the beneficiary must satisfy the RMD on behalf of the deceased.
  37. My spouse is the primary beneficiary of my IRA. I also have a contingent beneficiary. ...

    A spouse who is the sole primary beneficiary of an IRA can always treat the IRA as his or her own. The contingent beneficiary on an IRA is never taken into consideration unless the primary beneficiary predeceases the IRA owner, or the primary beneficiary disclaims the assets.
  38. Recharacterizing Your IRA Contribution Or Roth Conversion

    Learn why you might make such a transaction and find out how to calculate how it will affect you.
  39. A Look At IRA Separate Accounting Rules

    If you are a younger multiple beneficiary, make sure you understand the RMD regulations.
  40. 4 IRA Changes That Encourage Savings

    Find out what's new in the world of IRAs and how you can get more bang for your buck.
  41. As a temporary resident of the US, can I withdraw funds from my Traditional IRA without ...

    Should you decide to invest in a Traditional IRA and receive a tax deduction for your contribution, the amounts that you later withdraw will be subject to income tax and an additional 10% early-withdrawal penalty. The penalty will be waived if you meet an exception.Given that you ...
  42. If I am entitled according to my divorce decree to a percentage of my ex-husband's ...

    In order to have your portion of the IRA assets transferred to you (i.e. into your name), you should contact your husband's IRA custodian/trustee and provide them with a copy of the divorce decree. Be sure to ask the custodian about other documentation requirements.
  43. Can investment real estate be purchased within an IRA and, if so, are there any pitfalls?

    Investment real estate can be purchased with an IRA provided the investment does not violate the prohibited transaction rules.An individual may want to check with the IRA custodian to determine whether this is an option, as not all custodians allow for such investments.
  44. My spouse and I now earn more than the dual-income limit specified by our IRAs. What ...

    The amounts that you contributed while your modified adjusted gross income (MAGI) was within the statutory limits will not be affected by any increase in your MAGI for future years. For instance, assume you contributed $4,000 for tax year 2007 while your MAGI was below $166,000.
  45. Can my spouse and I combine our Traditional IRAs?

    No. IRAs cannot be maintained as joint accounts. One key indicator is the label - IRA stands for individual retirement account. The "individual" in the label suggests that the account must be maintained as an individual account for registration purposes.
  46. I have two jobs. Can I contribute to two SIMPLE IRA plans?

    If there is no relationship between the two companies - the only link is that the employee works for both of them - then the employee can make salary deferral contributions up to an aggregate amount of $20,500, with no more than $13,000 to one of the SIMPLE IRAs.
  47. When should I take my Canadian Pension Plan distributions?

    The Canadian Pension Plan (CPP) is a retirement program from which contributing Canadians may receive payments at the age of 60 or upon a disability. The program, however, does not start immediately paying you upon retirement, disability or at the age of 60 because you must apply for payments.
  48. Money Can't Buy Retirement Bliss

    Emotional snags can ruin your future happiness. Learn how you can avoid them.
  49. Where can I find information on multiple annual additions for someone employed by ...

    That information can be found in Internal Revenue Code Section 402(g). Also see IRS Publication 571.If an individual participates in multiple retirement plans, the aggregate salary deferral among those plans for the individual cannot exceed $15,000 for 2006, plus catch-up contribution of $5,000.
  50. A Closer Look At The Roth 401(k)

    Learn about the benefits and drawbacks of this new investment account and see if it's right for you.
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