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9 10, 2020

Required Minimum Distributions (RMDs) are Waived in 2020—Should You Still Take Them?

By |2020-10-19T08:17:44-07:00October 9th, 2020|Categories: IRAs, Retirement Planning, Tax News|Tags: , , , , , , , , |0 Comments

If you are age 72 or older, you generally must take required minimum distributions (RMDs) from your traditional IRA or employer-sponsored retirement plan, such as a 401(k) or 403(b), each year. These amounts are included in your taxable income, and if you fail to take your RMD by the annual deadline, the amount not withdrawn

16 09, 2020

Active Versus Passive Investing: The Pros, Cons, and Tax Implications of Each Approach

By |2020-10-01T20:04:31-07:00September 16th, 2020|Categories: Retirement Planning, Tax Planning|Tags: , , , , |0 Comments

When deciding how to invest your money in order to maximize returns and minimize taxes over time, you may hear about two different strategies: active and passive investing. As the names suggest, active investing involves a more hands-on role for the portfolio manager, while a passive approach involves buying and holding investments for the long-term.

9 09, 2020

Retirement Fund Rollovers: Watch the Calendar and Follow the Rules

By |2020-09-11T02:29:32-07:00September 9th, 2020|Categories: IRAs, Retirement Planning, Tax Planning|Tags: , , , , , , , |0 Comments

There are many reasons why you might want to move your retirement savings to another account.  Maybe you want to invest with a company with better performance. Maybe you changed jobs and want to bring past accumulations with you to a new plan. If you’re among the millions who lost a job as the economy

26 08, 2020

Limiting Your Post-Retirement Tax Bite

By |2020-09-03T00:46:12-07:00August 26th, 2020|Categories: Retirement Planning, Tax Diversification, Tax Planning|Tags: , , , , , |0 Comments

Saving for retirement in tax-deferred vehicles is a great way to reduce your tax burden today. But it’s also important to limit the tax bite out of your hard-earned savings later by creating a stream of tax-free retirement income. By most estimates, income tax rates will likely rise in the future. Current rates set in

24 07, 2020

Converting to a Roth? Don’t Dip into Your Traditional IRA to Pay the Taxes

By |2020-07-24T00:42:03-07:00July 24th, 2020|Categories: IRAs, Tax Planning|Tags: , , , , , , |0 Comments

Converting a traditional Individual Retirement Account to a Roth IRA offers tax advantages in certain situations. It is most advantageous when you can pay any resulting income taxes without using funds from the traditional IRA. Contributions to Roth IRAs have already been taxed, so they grow tax-free. That means withdrawing from a Roth IRA after

17 07, 2020

The Downside of a Large Tax-Deferred Nest Egg

By |2020-07-17T23:57:51-07:00July 17th, 2020|Categories: Retirement Planning, Tax Planning|Tags: , , , , , , |0 Comments

You’ve been saving aggressively in an IRA or 401(k) plan for your whole career and you’re set up well for retirement. Or are you? If you’ve built up a large nest egg only or mostly in tax-deferred accounts, you may give up too much of your hard-earned savings to taxes when you begin withdrawing from

14 07, 2020

Roth Distribution Rules Help Minimize Taxes and Penalties

By |2020-07-15T00:19:36-07:00July 14th, 2020|Categories: IRAs, Tax Planning|Tags: , , , |0 Comments

Roth IRAs are a great way to balance out your retirement portfolio with assets that can offer a tax-free source of income. Specific rules governing distributions that enhance tax breaks—and a growing list of exceptions to early penalty rules—make Roth IRAs a handy asset to have in your investment toolbox. The biggest and best-known advantage

25 06, 2020

Converting a Traditional IRA to a Roth May Pay Off—Even Near Retirement

By |2020-06-25T23:46:04-07:00June 25th, 2020|Categories: IRAs, Retirement Planning, Tax Diversification|Tags: , , , , |0 Comments

Saving for retirement in a traditional Individual Retirement Account effectively shelters income from taxes while you’re in your high-earning years. But a Roth IRA, which allows withdrawals tax free in retirement when tax rates may be higher, is also appealing. If you haven’t balanced your investments in both types of accounts—or if you couldn’t start

9 06, 2020

How IRA Distributions May Affect Your Social Security and Medicare Benefits

By |2020-06-13T20:21:45-07:00June 9th, 2020|Categories: IRAs, Retirement Planning|Tags: , , , , , |0 Comments

Taking distributions from your retirement account will not reduce your Social Security benefits. However, these distributions will add to your income, which will affect the taxes you pay and could cause your Medicare premiums to rise. Added to any wages and other income sources, distributions from traditional individual retirement accounts and 401(k)s are taxable and

5 06, 2020

Why Now May Be the Right Time to Convert Your Traditional IRA to a Roth IRA

By |2020-06-13T20:18:10-07:00June 5th, 2020|Categories: IRAs|Tags: , , , |0 Comments

As two of the most widely used vehicles for retirement savings, traditional IRAs and Roth IRAs are both designed to facilitate long-term investment and provide tax advantages. However, one of the key differences between them lies in when they are taxed. Traditional IRAs are funded with pre-tax dollars: you receive a tax deduction when you

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