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11
Mar
Choosing the Right Financial Advisor in 5 Easy Steps
Why do you need a financial advisor? Today’s financial landscape is as complicated as ever. A good financial advisor can help you navigate this complexity so that you can make educated, informed decisions on what is best for you and your family. 1. Ask for references. Ask your CPA or estate planning attorney. In many cases, they already have a working relationship with a financial advisor.
4
Mar
Avoiding Mistakes in a Divorce in 5 Easy Steps
Retirement accounts and divorce. When a divorce occurs, the financial assets of a couple, including their retirement accounts, are often split. If mistakes are made during this process, the stress of a divorce can be compounded when one or both spouses find that they are subject to unnecessary taxes or penalties. 1. IRAs in divorce.
26
Feb
Choosing the Right Tax Professional in 5 Easy Steps
Why do you need a tax professional? Managing taxes during retirement will be the single most important factor in determining your ultimate lifestyle. In addition to a financial planner and estate planning attorney, a qualified tax professional is an integral part of any planning team. 1. Ask for references. Have you ever stopped to think about how you picked your doctor or mechanic?
29
Jan
Navigating the Health Care Taxes in 5 Easy Steps
What is considered investment income? Investment Income: Interest, dividends, capital gains (long and short), annuities (not those in IRAs or company plans), royalty income, passive rental income, other passive activity income.
22
Jan
Avoiding 60-Day Rollover Mistakes in 5 Easy Steps
What is a 60-day rollover? A 60-day rollover is the distribution of funds from a qualifying retirement account payable to the account owner who then has 60 days to redeposit the funds into another qualifying retirement account. 1. Do trustee-to-trustee transfers instead. The best way to avoid making a 60-day rollover mistake is to avoid 60-day rollovers! Transfer your funds directly to another retirement account.
15
Jan
Examining Qualifying Longevity Annuity Contracts in 5 Easy Steps
What is a QLAC (Qualifying Longevity Annuity Contract)? A QLAC is a type of fixed income annuity that has special attributes and is held in a retirement account. 1. RMD (required minimum distribution) exclusion. The fair market value of your QLAC is excluded from your RMD calcuations. What’s the benefit?
16
Dec
10 Questions Answered on IRAs, RMDs & Tax codes
1: Who is the beneficiary when the primary beneficiary of an Inherited IRA died before claiming it?Answer: John, age 75, has a traditional IRA. He dies with his sister Kathy as his primary beneficiary and Kathy’s children (John’s nephews) named as contingents. Kathy, age 72, qualifies as an eligible designated beneficiary (EDB) because she is not more than 10 years younger than John.
13
Nov
Planning for Health Savings Account (HSA) Distributions in 5 Easy Steps
A Health Savings Account is a tax-advantaged medical savings account that helps people pay for qualified out-of-pocket medical expenses. What are the withdrawal rules for HSAs? Are there special considerations that must be taken into account? 1. Withdrawals can be taken at any time. There is no holding period like with Roth IRAs. The entire withdrawal (including any earnings) is tax-free as long as there is a corresponding qualified medical expense.
23
Oct
Determining Tax on Roth IRA Distributions in 5 Easy Steps
What are the ordering rules? Roth IRA distributions can consist of contributions, converted funds and earnings – or any combination of the three. To determine what your distribution is, you must use “ordering rules” which dictate the order in which these categories of Roth IRA money must be withdrawn. All Roth IRAs are considered one Roth IRA for distribution purposes. A Roth IRA distribution will consist first of any Roth IRA contributions.
16
Oct
Calculating Your RMD in 5 Easy Steps
What is an RMD (required minimum distribution)? An RMD is the minimum amount that must be withdrawn from a retirement account each year. When are you subject to RMDs? Traditional IRA owners are subject to RMDs beginning in the year in which they turn age 73. The RMD age used to be 70½, but the SECURE Act raised the age to 72 for anyone who turned 70½ in 2020 or later.