Avoiding the 60-Day IRA Rollover Rule
Posted On June 23, 2014
An employer-sponsored plan allows an employee to contribute pre-tax dollars into an investment account for retirement savings. These plans offer several tax benefits including tax-deferred contributions until withdrawn, and employers are allowed to deduct those allowable contributions for each participant. When someone leaves their employer-sponsored plan, they generally have four options to choose from:
- They can leave the money in the former employer’s plan; or
- Roll over the assets to a new employer’s plan; or
- Roll over the assets into an IRA; or
- Cash out...
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Get Your Financial Advisor to Work for You
Posted On May 8, 2014
When you turn over your hard earned money to a financial advisor, you would expect that your best interests will be taken to heart. In the end, that’s not always the case. Over the years, investors have lost trillions in the markets, especially with the last two major market corrections. As a result, it can be safely assumed that a number of advisors do not have their client’s interests first and foremost on their minds. Most clients trust their financial advisors,...
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4 Strategies for Creating and Preserving Wealth
Posted On February 20, 2014
For years you thought creating wealth meant saving as much as possible – taking advantage of all of the available tax deductions, contributing to a retirement account and diversifying investments. Picking good financial advice from bad financial advice isn’t always easy, but when it’s touted as the way things are, it’s even more confusing. As society evolves, the advice you once thought was significant might be downright disastrous and outdated. Saving for retirement is important, but conventional advice is not enough...
- Charitable Planning
- Estate Planning
- Financial Planning
- Investment Advisory
- Retirement Planning
- Tax Planning
- Wealth Management
Stretch IRAs – What They Are and How They Work
Posted On January 31, 2014
The IRS issued new proposed regulations in January 2001 that make it much simpler for IRA participants to determine their required minimum distributions (RMDs). This is the amount that must be withdrawn starting no later than April 1st of the year after the IRA holder reaches age 70 ½. In addition, these new rules make it much easier for beneficiaries of IRAs to "stretch out" the income taxes they must pay when they inherit an IRA.
The Problem with IRAsTraditional IRAs...
3 Ways Life Insurance Can Be Given to a Charity
Posted On January 29, 2014
Every year, millions of Americans donate cash and property to the charities of their choice. While these donations can provide valuable tax deductions, most are left wishing that they could do more for the charities they support. However, leaving a life insurance policy that you may no longer need might be among one of the most convenient and effective ways. Let’s examine how you can leave a legacy to a charity of your choice. Make the Charity as Beneficiary of the Policy You...
Understanding Required Minimum Distributions
Posted On December 19, 2013
As the baby boomers phase into retirement over the next several years, a common hurdle that most will face are Required Minimum Distributions (RMDs) from their IRAs or other employer sponsored qualified plans. Here are some of the rules as well as the subtle nuances that can come up with these intricate calculations. What are RMDs? Internal Revenue Code Section 401(a)(9) requires minimum distributions to be taken by participants in IRAs (except Roth IRAs while the plan owner is living), employer sponsored qualified...
How Professional Athletes Can Avoid Turnovers with their Finances
Posted On November 15, 2013
Professional athletes often become millionaires overnight. For example, in April, the NFL drafted 254 college students into the league. In June, the MLB drafted 1,216 college students, and in July, the NBA drafted 60 college students into the league. However, fast-forward five or ten years down the road, and many of this year's rookies, like many of their prior counterparts before them, could end up broke. The financial rise and fall of professional athletes is one of those puzzling things that...
Should You Convert to a Roth IRA?
Posted On November 13, 2013
The Roth IRA offers a number of advantages over its traditional counterpart. These include:
- Tax-free distributions at retirement
- Ability to continue making contributions beyond age 70 ½
- No required minimum distributions beginning in the year you turn 70 ½
- Leaving assets to survivors that are free from income taxes
- For years before 2010, if your filing status is married filing separately, you don't qualify unless you lived apart from your spouse for the entire...
Using Annuities for Tax Planning
Posted On November 1, 2013
Favorable tax treatment is one of the main reasons for buying an annuity. But what exactly are the tax benefits? And are there any drawbacks? It's important to know the answers to these questions before deciding whether to purchase an annuity. Of course, any information pertaining to taxes is complex, full of exceptions, and subject to change. Taxation of premiums Annuities are typically funded with after-tax dollars. So, the money you pay into an annuity (in the form of premiums) is nondeductible....