There are two major differences between saving for retirement and eating bacon. Bacon is bad for you and saving is regarded as good for you. Yet most of us eat bacon regularly and don’t save. Beverly DeVeny explains how you can have your bacon... and eat it too.
A new year brings new retirement account rule changes. IRA Analyst Sarah Brenner dissects six retirement account rule changes that you need to know. Everything from qualified chartiable distributions (they are back!) to SIMPLE IRAs and expanded penalty-free distributions for higher education expenses are discussed.
As 2015 draws to a close, the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) was signed into law on Friday, December 18. Buried in this legislation, which is over 2,000 pages long, is a provision that expands your ability to take a penalty-free distribution from your IRA for higher education. We examine qualified education expenses and the addition of computer expenses in the possible penalty exceptions.
The leaders of Congress promised us that they would deal with the issue of expired tax breaks early in the year so that the American public could proactively go forth with their tax planning based in reality. Well, that didn’t happen. It appears that neither Republicans nor Democrats have the ability to pass timely tax legislation. So, here we are again.
Are you facing big college tuition bills? Generally, if you take a taxable distribution from your IRA before you reach age 59 ½, you will be subject to an additional 10% early distribution penalty. However, an exception to the penalty allows you to take a penalty-free distribution from your IRA if you use the funds for qualified higher education expenses. If you decide to tap your IRA early in order to pay for education costs, you will want to avoid these four mistakes that others have made.
A new client calls or comes to your office. They tell you that they have just inherited retirement assets from their parent, spouse, sibling, friend – it doesn’t matter who. What is the first and most important question you ask them and what impact does that answer have?
It's that time of year if you are an IRA owner age 70 ½ or older. You must take your required minimum distribution (RMD) before the end of the year. Not taking your RMD or the correct amount can result in crippling penalties, which is why we cover this topic in great detail at The Slott Report. Today, I examine 3 RMD mistakes you must avoid. Remember, it's not too late to take your RMD, just make sure you do it correctly with the assistance of a competent, educated financial advisor like the ones who trains in this specialized area.
If you have a traditional IRA and are age 70 ½ or older this year, you will have to take a required minimum distribution (RMD) from your IRA for 2015. Your 2015 RMD is calculated by dividing your December 31, 2014 IRA balance by a life expectancy factor. You can determine your life expectancy factor by using life expectancy tables issued by the IRS. You will most likely use the Uniform Lifetime Table except when this special spousal rule applies.
So, what happens to your IRA when your beneficiary dies? It all depends if the beneficiary dies before or after you. Let's look at a few examples to illustrate the differences.
The rules for rolling over IRA distributions can be complicated. These rules can become especially challenging at the end of the calendar year. If you are taking a distribution from your IRA at end of 2015 and considering a roll over that may not be completed until 2016, here are four facts you will want to know.
