The IRS just released the updated version of Publication 970, Tax Benefits for Education (For use in preparing 2012 Returns). It discusses a relatively unknown savings account called a Coverdell Education Savings Account (known as a CESA or ESA). An ESA is set up to pay the qualified education expenses of a child or student, known as a designated beneficiary.
Retirement planning is about time...and it sure does fly. Maximizing your time and planning early (while thinking about how to minimize risk later in life) is quintessential to any successful plan. This week's Slott Report Mailbag examines ages (particularly ages 59 1/2 and age 70 1/2) as they relate to retirement planning.
With many Americans living much longer due to advances in medicine, some seniors have asked whether Medicaid can take their IRA to pay for nursing home care, should they require it at some point. The answer to that question is complicated and should be addressed by an elder-care planner. Some general information follows.
This week's Slott Report Mailbag includes questions about where to put your IRA money, RMD requirements, and excess IRA contributions. Click to read a Q&A with our IRA Technical Expert.
Even though Hurricane Sandy occurred in late October 2012, its effects are still being felt. The IRS issued several news releases describing the postponement of certain tax-related deadlines for victims affected by Hurricane Sandy. These postponements also apply to IRA and other retirement plan deadlines. The relief applies to many counties in New Jersey, New York, and Connecticut.
This week's Slott Report Mailbag talks about how (if at all) the new tax law affected Roth conversion planning, as well as a look at Roth IRA rollover rules and the ways you can withdrawal 401(k) money early without penalty (can you do that?).
As we gather our information to prepare our federal income tax return for 2012, don't forget about that Roth IRA conversion you did all of the way back in 2010. A conversion you did from a company plan or IRA to a Roth IRA in 2010 will likely need to be reported on your 2010 tax return.
This week's Slott Report Mailbag talks about the act of "moving money" from one retirement account (yours or an inherited account) to another. There are many tax and penalty pitfalls at play, and we dissect the right way to go through these procedures in the question-and-answer below.
The retirement plan rules are constantly changing. They can be complex. Often, taxpayers are looking for good, free sources of information. While Internet searches can be helpful, caution should be used because there is no guarantee that the information you have found is timely or accurate. So where can you get accurate information on retirement plans? We explain below.
We have covered the new tax law (the American Taxpayer Relief Act of 2012) from both a retirement planning and tax planning standpoint since it was signed into law by President Barack Obama on January 2, 2013. We wrote a quick analysis of the law complete with a 5-plus-minute video on 5 key planning points. We followed with a detailed look at qualified charitable distributions (a topic we get frequent questions about), and how they were affected by the new law.
