On Friday, December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. The broad intent of the legislation is to make it easier for families to save more for retirement, but it also includes several unfavorable provisions intended to offset the loss of tax revenue likely to result…
Details
Annual contribution limits for retirement savings accounts for 2019 and 2020, as established by the IRS, are listed below. Please keep in mind that contributions to Traditional IRAs, Roth IRAs, and SEP IRAs can be made up until the time your tax return is due, including extensions.
Details
In most aspects of our lives, taking action serves us well. We are conditioned from a young age to believe that if we want to succeed at any endeavor – climbing the corporate ladder, excelling at a sport, being a great parent, getting good grades – we must work hard, make tough choices, and put…
Details
In the hierarchy of tax-preferenced savings vehicles, the Health Savings Account (HSA) sits at the top. Unlike an IRA or 401K, an HSA offers a triple tax benefit: contributions to the account are tax-deductible, earnings grow tax-deferred and distributions are tax-free as long as they are used to pay for qualified health expenses. In contrast,…
Details
Annual contribution limits for retirement savings accounts for 2018 and 2019, as established by the IRS, are listed below. Please keep in mind that contributions to Traditional IRAs, Roth IRAs, and SEP IRAs can be made up until the time your tax return is due, including extensions. 2018 2019 Maximum Annual Traditional IRA contribution (under…
Details
When helping people plan for their financial future, the overriding principle that governs the advice we give is to “control what we can.”, and one of the things we have the most control over is how much we spend and how much we save. For those that are preparing for retirement, so much focus is…
Details
When saving for retirement, ROTH accounts are becoming increasingly popular. Unlike traditional IRAs or 401k plans, while contributions to ROTH IRAs and ROTH 401k plans are not tax deductible, distributions are tax-free (so long as certain requirements are met). If you have ROTH accounts, it is important to understand Minimum Distribution Requirements as they differ from those of traditional IRAs/401ks.
Details
As you may recall, under the Obama administration, the Department of Labor passed the Fiduciary Rule which addressed the standard of care that an advisor has to their clients in regard to retirement plan accounts. A fiduciary standard means the advisor is ALWAYS required to act in the client’s best interest, whereas a suitability standard…
Details
In the video When Should You Begin Collecting Social Security Benefits, we’ve discussed considerations to take account when determining when to begin collecting social security benefits. Specifically, we discussed the fact that delaying collection allows your benefit amount to grow by 8% per year plus inflation from Full Retirement Age to Age 70 while collecting…
Details
When a prospective client over the age of 55 calls my office, more times than not, it is someone who is thinking about retirement. He or she has been working for many years, has accumulated some significant assets, may or may not be eligible for some type of pension and will have social security income. …
Details