Category Archives: Roth IRA
Roth IRA has a 5-Year Rule
Roth IRAs are popular for their flexibility and the simplicity of putting after-tax dollars in and not paying taxes on withdrawals during retirement. However, making the most of a Roth IRA requires paying attention to the details, according to a recent article “What is the Roth IRA 5-Year Rule?” from U.S. News & World… Read More »
Stretch Out IRA Distributions, Even Without ‘Stretch’ IRA
It’s sad but true: the SECURE Act took away the long lifetime stretch that so many IRA heirs enjoyed. It was a great efficiency tool for family wealth transfer, but there are ways to fill the gap. A recent article “3 Strategies That Dry Your Stretch IRA Tears” from InsuranceNewsNet.com explains what to do… Read More »
Inherited IRAs Require Careful Handling
For those who inherit IRAs, the intersection of taxes, estate law and financial planning can be a tricky place. There are many choices, maybe too many, and making the wrong choice can be costly, according to the recent article “6 inherited IRA rules all beneficiaries must know” from Bankrate. There are two categories of… Read More »
Tax Implications of CARES Act for Roth Conversions
With a combination of lowered 2020 tax liability, the potential for future tax increases and potentially lower portfolio values, we are in uncharted financial waters. However, all of these factors may make a Roth conversion more attractive than ever, according to the article “Covid-19 and the CARES Act enhance the Roth conversion game” from… Read More »
Tapping an Inherited IRA?
Many people are looking at their inherited IRAs this year, when COVID-19 has decimated the economy. The rules about when and how you can tap the money you inherited changed with the passage of the SECURE Act at the end of December 2019. It then they changed again with the passage of the CARES… Read More »
What Do I Need to Retire?
Research from the Employee Benefit Research Institute’s Retirement Confidence Survey shows a lack of preparation in retirement planning. According to the annual survey, 66% of those 55 years and older said they were confident they had sufficient savings to live comfortably throughout retirement. However, just 48% within the same age group haven’t figured out… Read More »
Will Your Estate Plan Work Now?
The demise of the stretch IRA is causing many IRA owners and their advisors to take a look at how their estate plans will work under the new law. An article from Financial Advisor titled “Navigating The New Estate Planning Realities” offers several different planning alternatives. Take larger IRA distributions during your lifetime. If… Read More »
Alternatives for Stretch IRA Strategies
The majority of many people’s wealth is in their IRAs, that is saved from a lifetime of work. Their goal is to leave their IRAs to their children, says a recent article from Think Advisor titled “Three Replacements for Stretch IRAs.” The ability to distribute IRA wealth over years, and even decades, was eliminated… Read More »
How Much Money Is Needed for Long-Term Care?
You probably know that healthcare is a big expense for retirees. If you don’t, it is important to understand that the cost of long-term care is very high. Research shows that 70% of seniors 65 and over will require some type of long-term care in their lifetime. This could be as little as a… Read More »
What’s Your Retirement Distribution Plan?
If you were supposed to take out an RMD of $4, 000 from your retirement accounts and somehow forgot to do this, you’ll be writing the IRS a check for $2, 000. Ouch! This is something you can easily avoid, says Yahoo Finance’s article “Know These 3 Facts to Avoid Paying Half Your Retirement… Read More »