I want to remind you about the retirement tax credit for lower/middle-income working families. Assuming you meet the eligibility requirements, you can claim a tax credit for your retirement plan contributions for 2012. Eligible retirement plans include 401(k)s, 403(b)s, a … Continue reading
For retirees, there’s a magic age in the tax code that you must be aware of: 70 ½. That is the age when so-called “required minimum distributions” begin from most of your typical retirement accounts, like IRAs. It’s very important … Continue reading
For many small business owners, the business is also their retirement plan. The plan is to sell the business at some point and then retire. The trouble is often in the timing. When you want to sell may not be … Continue reading
What really motivates people to save for retirement? Well, it’s not linear thinking, which is how most of us think when figuring out a math problem off the top of our heads. What can really motivate someone to save is … Continue reading
When it comes to generating retirement income, conventional wisdom says to spend down/consume your taxable assets first, then your tax-deferred assets (like 401k and traditional IRAs), and then tax-free assets last (like Roth IRAs). After spending all your taxable assets, … Continue reading
In many cases, rolling your company retirement plan assets to an IRA after you leave an employer makes sense. But if there is company stock involved, there may be a better tax option. If you are age 55 or older … Continue reading
In the good ol’ days, having a pension was about as good as it would get for a retiree. Nowadays, even pensions aren’t guaranteed. Stockton, CA filed for bankruptcy this summer, and part of its restructuring plan included cutting retirement … Continue reading
If you have employer stock in your retirement plan (typically in a 401k or an employee stock ownership plan), rolling over that stock to an IRA when you leave that employer may be a mistake. As always, it depends on your … Continue reading
You’ve changed jobs (or lost a job), and you want to move your retirement plan money from your former employer to your IRA. If that money rolls over directly from your employer’s plan to your IRA (typically called a “direct … Continue reading
If you’ve changed jobs recently (or expect to soon) because of a layoff or a corporate downsizing, or perhaps on the brighter side because of retirement, you face an important decision regarding money in your former employer’s retirement plan: whether … Continue reading
