Don’t get trapped with the IRA 60 day rollover rule

Deadlines can be very stressful, especially when it comes to taxes. One stress that many people are not aware of is the 60-day deadline for keeping an IRA rollover tax-free. Why you may ask? Because missing the 60 day rollover rule can result in taxable income — and if you’re under age 59½, you may …

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5 Tips to determine if your Social Security is taxable

You may not realize the Social Security benefits you received in 2018 may be taxable. You should receive a Form SSA-1099 from the Social Security Administration which shows the total amount of your benefits. You can use this information to help determine if your benefits are taxable. Here are five tips from the IRS to …

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Health savings accounts as retirement savings

Three words: triple tax free. The contributions are tax deductible, the earnings are not taxed and distributions are tax free if they are used for qualified expenses. This is the main advantage and beauty of Health Savings Accounts (HSAs). While Roth and traditional retirement savings accounts will almost always result in taxable income (now, or …

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Retirement contribution limits increasing in 2019

The IRS recently issued technical guidance relating to changes for pension plans and retirement accounts for tax year 2019. The biggest changes relate to the amounts employees can contribute to various types of retirement plans. The good news for you is that retirement contribution limits are going up. Retirement contribution limits The contribution limit for …

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How can you benefit from an 83(b) election?

When is an 83(b) election appropriate to make and what are some of the benefits from it? Section 83 applies to employees who receive stock that is subject to vesting. It is an election that would allow the taxpayer to be taxed at the time of the receipt of the property. There are various examples …

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Treasury ends myRA low income retirement savings plan

The myRA (“my retirement account”), a savings account designed to help low and middle-income savers put money away for retirement, is being shut down by the U.S. Treasury Department. Citing lack of participation relative to the cost of maintaining the program, U.S. Treasurer Jovita Carranza, stated “The myRA program was created to help low to …

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Foreign earned income exclusion & retirement savings

Do you think your accountant asks you too many questions? Do you feel interrogated? I’d just like to remind you that we are on your side and we aren’t the ones issuing penalties. We are here to help prevent those penalties, but we can only use the information that is given to us (shocking, I …

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Is the death of the stretch IRA imminent?

We may soon see the end of a valuable estate planning tool known as the stretch IRA, which allows the tax deferred status of an inherited individual retirement account (IRA) for as long as possible when the beneficiary is someone other than a spouse. This tool is typical of the planning currently being done with …

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Advantages of a Roth IRA for retirement

Saving for the future can be a daunting task if you are unsure where to start or what the advantages of each type of saving can do for you. Let’s take a minute to look at the advantages of a Roth IRA. A Roth Individual Retirement Account (IRA) is an account you open and manage …

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Out of state pension income – who gets your taxes?

The best part of being retired is no doubt the freedom of movement. This freedom allows retirees to live wherever they want and to move whenever they want. (Oh, the joy!) They may decide to move to someplace warmer, someplace cheaper, or even someplace closer to their kids or grandkids. The fact is that many …

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