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.
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.
If you have decided to establish an IRA for your child, there are several decisions you must make, including which type of IRA to use and what investments to choose. For more information on how we apply our Ten Year Rule investment philosophy to a child’s IRA, read this Financial Strategy.
A Roth IRA account can be used to save for both retirement and education expenses; however, there are some disadvantages to doing so, including lower contribution limits and the possibility of taxed earnings. For more information on Roth IRA rules and how an account affects education savings, read this Financial Strategy.
There are several scenarios that would make a non-deductible IRA contribution useful to an investor. These include low capital gains tax rates and a strategy involving converting an appreciated account to a Roth IRA. For more information on how a non-deductible IRA contribution may benefit you, read this Financial Strategy.
Recent surveys show that while couples agree investment and retirement plans need adjustment because of the the market’s downturn, they do not agree on how their plans should be adjusted. For more information on what you and your spouse should consider when evaluating your financial future, read this Financial Strategy.
If you are a non-spouse beneficiary of an IRA, the IRS has very specific rules as to how the IRA must be treated to avoid immediate taxation. Tax planning is a must as once mistakes have been made, they cannot be undone, which could result in loosing thousands of dollars to taxes. For more information on how an inherited IRA should be treated, read this C.P.A. Insight.
With so many retirement account balances down, the President passed the Worker, Retiree, and Employer Recovery Act of 2008. This Recovery Act makes it allowable for taxpayers to forego taking a Required Minimum Distribution for 2009. For detailed information on which taxpayers this affects and who it benefits, read this C.P.A. Insight.
When you change jobs, it is generally a good idea to roll assets in your company-sponsored retirement plan into a Rollover IRA.
By adjusting how you allocate your savings for retirement, you are able to benefit the greatest from two of the most popular savings strategy plans, 401(k)s and IRAs. We suggest a savings strategy that is designed to maximize your after-tax return and investment flexibility. For more on savings strategies and how to determine the best amount to contribute, read this Financial Strategy.
