A living Will and a Healthcare Power of Attorney can be used to make your wishes known if you become incapacitated and can cannot make decisions regarding your medical care. You can make your wishes know in advance regarding resuscitation, and the administration of food and water. For more information on planning health care decisions in advance, read this Financial Strategy.
If you take a distribution from a retirement account before you reach the age of 59 1/2, generally, you will have to pay a 10% early distribution penalty. However, if you take an early distribution to pay for unreimbursed medical expenses or qualified higher education expenses, you may be able to avoid the early withdrawal penalty. For other common exceptions in which you may not be subject to the 10% penalty, read this C.P.A. Insight.
Both SEP-IRAs and Safe Harbor 401(k) plans allow small-business owners to provide a qualified retirement saving option to their employees while saving a significant amount for their own retirement. These plans have different funding rules, and should be looked at closely by a business owner. For more information on the differences between SEP-IRAs and Safe Harbor 401(k)s, read this Financial Strategy.
If you are receiving a tax refund, consider directing your refund into your retirement account. This option is available to all individual filers no matter which 1040 form they file. For more information on the direct deposit of your refund, read this C.P.A. Insight.
Investors who are seeking income producing investments during a time when interest rates are low may turn to master limited partnerships. It is important to remember master limited partnerships are businesses first, and they expose the investor to more than investment or market risk. For a detailed explanation of master limited partnerships, read this Investment Whys.
When discussing the initial mandatory IRA withdrawal, one can easily become confused by the rules and regulations on when the withdrawal should occur. Assets such as qualified retirement plans, 403(b) Plans, IRAs, SEPs, SIMPLE IRAs and section 457 Plans are all included in calculating a mandatory withdrawal. For more information about your first mandatory IRA withdrawal and to learn how your withdrawal is calculated, read this Financial Strategy.