“Make sure you commit to the payment plan,” says Sarah Brenner, Director of Retirement Education at Ed Slott & Co., a tax-consulting firm in Rockville Centre, N.Y.“You really need to be sure you want to be locked into the payment plan for a long duration.”
Individual retirement accounts have strict rules for depositing and withdrawing money.But there are exceptions, and one of them is attracting attention these days—“substantially equal periodic payments.”
Often referred to as 72(t) plans, this option allows those under the age of 59½ to withdraw funds early from their traditional IRA accounts, for any reason, without paying the usual early-withdrawal penalty of 10% on top of the regular taxes.
It sometimes seems like when it comes to college-savings vehicles, 529s are the only game in town.
But investors are doing themselves a disservice if they don’t also look at another savings tool available: Coverdell Education Savings Accounts (ESAs).Like 529s, ESAs are a tax-favored way to save for education expenses.
For many years, “529” education-savings plans have been a tax-advantaged vehicle for parents and grandparents to accumulate funds for a child’s college costs.A new law, enacted at the end of last year, has made these plans even more advantageous.
My siblings and I are at odds over how to care for our mother, who is widowed and not in the best of health.She wants to continue living at home, but two of us think she needs to move to an assisted-living community
The Internal Revenue Service issued a notice Tuesday that people who took required distributions from retirement accounts this year can put the money back.
On March 27, President Trump signed into law a measure that suspends for 2020 the required minimum distributions, or RMDs, many retirees must take from tax-deferred 401(k) and individual retirement accounts.
The coronavirus pandemic is wreaking havoc on the U.S.economy, with 26 million workers newly unemployed and plenty more people jolted by declines in their retirement and brokerage accounts.
Americans at all economic levels are looking to free up cash
It’s a confusing year for charitably minded seniors with traditional individual retirement accounts—and a good one to reconsider giving strategies.
Recent law changes are responsible.Late in 2019, Congress raised the age at which most savers are required to start taking money from their IRAs to age 72 from age 70½
With stocks down around 17% since Feb.20, older Americans stand to benefit from Congress’s stimulus-bill move to suspend required minimum distributions from retirement accounts this year.
The one-year hiatus gives those who can afford to leave their nest eggs alone a better chance of recovering losses
