Tag: Retirement Planning

Who is Your Trusted Contact?

Jun 19, 2020

Trust written on 2 pieces of paper
This vital investment account question should be answered sooner rather than later

Investment firms have a new client service requirement. They must now ask you if you would like to provide the name and information of a trusted contact.1

You do not have to supply this information, but it is encouraged. The request is made with your best interest in mind – and to lower the risk of someone crooked attempting to make investment decisions on your behalf.1 (more…)

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Retirement Plan Options for Small Businesses

Jun 17, 2020

Retirement Plans Notebook on Desk
The SECURE Act and CARES Act may complicate the decision.

As a small-business owner, figuring out retirement choices can be a little intimidating. How do you pick the most appropriate retirement plan for your business as well as your employees? (more…)

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Before You Claim Social Security

Jun 15, 2020

Social Security Card Form
A few things you may want to think about before filing for benefits

Whether you want to leave work at 62, 67, or 72, claiming the retirement benefits you are entitled to by federal law is no casual decision. You will want to consider a few key factors first before taking social security. (more…)

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The Retirement We Imagine vs the Retirement We Live

Jun 1, 2020

No Work Ahead Retirement Sign
Examining the potential differences between assumption and reality

Financially speaking, retirement might differ from your expectations. Just as few weathercasters can accurately predict a month’s worth of temperatures and storms, few retirees find their financial futures playing out as precisely as they assumed. Because of this, some common financial assumptions (and anxieties) about retirement are worth examining. (more…)

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Cash Balance Plans

May 27, 2020

Pension Cash Balance Plans Scrabble Words
More professional practices (and practice groups) should look into them

In corporate America, pension plans are fading away. Only 16% of Fortune 500 companies offered them to full-time employees in 2018, according to Willis Towers Watson research. In contrast, legal, medical, accounting, and engineering firms are keeping the spirit of the traditional pension plan alive by adopting cash balance plans.1 (more…)

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Backdoor Roth IRA

May 20, 2020

Padlock open on backdoor fence
If you make too much money to open a Roth IRA, you could create one this way

You can sum up the appeal of a Roth IRA in three words: federal tax benefit. Potential earnings in a backdoor Roth IRA grow tax free as long as the owner abides by the Internal Revenue Service (I.R.S.) rules, and withdrawals are federally tax free once you reach age 59½ and have held the Roth IRA for at least five years.1  (more…)

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Inherited Accounts Under the CARES Act

Apr 29, 2020

Inherited IRA Under CARES ACT
How the CARES Act Impacts RMDs

Tucked into the gigantic “Coronavirus Aid, Relief, and Economic Security” (“CARES”) Act were two key changes you should know about, regarding required minimum distributions (RMDs). Both were designed to give people more control over their money and to help manage selling investments during an emergency.1 (more…)

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CARES Act and Coronavirus Relief

Apr 2, 2020

Law hammer gavel CARE Act Book
Here are a few ways the government is alleviating the hit to retirement accounts

From Our Partners at PAI: The CARES (Coronavirus Aid, Relief, and Economic Security) Act has been a topic of discussion for weeks as legislators discussed the best way to give Americans a much-needed boost as the economy has faltered due to the Coronavirus. Signed into law in late March, there are several provisions that will help students, workers, and retirement plan participants to maintain more financial stability during this challenging time.

 

CARES Act changes retirement plan provisions for loans and tax-advantaged withdrawals

Retirees and workers alike have likely been groaning when looking at stock values over the last several weeks. While it takes some time for market volatility to level out, these provisions included in the CARES Act may provide retirement plan participants with additional flexibility and more options for loans and penalty-free withdrawals during this stressful time.

PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS

Workers who are experiencing financial difficulty due to the effects of COVID-19 on their careers, health, and overall financial wellness will be able to take a penalty-free distribution from a retirement account, like a 401(k) or IRA, between January 1, 2020, and December 31, 2020.

Under normal circumstances, there is a 10 percent penalty tax added to the taxes paid on distributions from a retirement plan before a participant reaches age 59 1/2. However, the CARES Act includes a provision that allows eligible participants to take up to a $100,000 distribution from a retirement account without the addition of the 10 percent tax that normally accompanies an early withdrawal. This tax-favored withdrawal may be repaid to an eligible retirement plan within three years of taking the distribution, with the option to repay beyond the normal annual contribution limits.

Eligible participants for a coronavirus-related distribution are those who have been diagnosed with the virus (or have a spouse or dependent diagnosed), experience adverse financial consequences as a result of being quarantined, unable to work, laid off, or those who had work hours reduced due to the virus.

TEMPORARILY INCREASED LIMIT ON RETIREMENT PLAN LOANS

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A Roth IRA’s Many Benefits

Feb 28, 2020

blue piggy bank hand coin smiling Roth IRA
Why do so many people choose them over traditional IRAs?

The IRA that changed the whole retirement savings perspective. Since the Roth IRA was introduced in 1998, its popularity has soared. It has become a fixture in many retirement planning strategies because it offers savers so many potential advantages.  (more…)

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Tax Considerations for Retirees

Feb 24, 2020

income tax calculator binder pen spreadsheet
Are you aware of these potential tax breaks and tax-saving opportunities?

The federal government offers some major tax breaks for older Americans. Some of these perks deserve more publicity than they receive. (more…)

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More Insights

Jul 10, 2020

With the economy and financial markets flashing mixed signals, it’s no wonder that lawmakers are deadlocked on whether to pass a Phase 4 of the CARES Act.

Jul 8, 2020

As states cautiously begin the process of relaxing their COVID-19 restrictions, some are wondering, “Why is the stock market doing so well when the economy is doing so poorly?” Ever heard of economic indicators?

Jul 6, 2020

Your car insurance premium is based on more than your driving history. The amount you pay for auto insurance is determined by a complicated algorithm that takes many factors into consideration. Your driving history is just one variable used to calculate your rate. Read on to learn more about what auto insurance carriers look at … Continue reading “What Determines Car Insurance Rates?”

Jul 3, 2020

As Americans adjust their spending habits in a rapidly changing economy, they are building cash reserves at an unprecedented rate. The Bureau of Economic Analysis reported on May 29th that the personal savings rate hit a historic 33% in April. To put that into perspective, it’s the highest number since the Bureau started tracking personal … Continue reading “An Unprecedented Rush to Cash”

Jul 1, 2020

The Fourth of July holiday will be very different this year. Although it’s a time to enjoy family and friends, and maybe even watch some fireworks, social distancing and a new wave of COVID-19 cases also may take a seat at the picnic table. We all continue to believe our doctors and medical community will … Continue reading “Fourth of July Optimism”

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