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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The traditional IRA and deductibility

Traditional IRAs are a great way to lower your taxable income and save for retirement. For 2016, you can contribute up to $5,500 to a traditional IRA plus an additional $1,000 if you’re age 50 and older. In order to contribute to an IRA, you must have “earned income”. Generally speaking, this is earnings from …

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Top Year-End IRA Reminders from the IRS

Individual Retirement Accounts, or IRAs, are important vehicles for you to save for retirement. If you have an IRA or plan to start one soon, there are a few key year-end rules that you should know. Here are the top year-end IRA reminders from the IRS: Know the contribution and deduction limits. You can contribute …

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Turning Age 70 1/2 and Required Minimum Distributions

When it comes to taxes, reaching age 70 ½ is an important milestone. That’s because you have to start taking annual required minimum distributions from your traditional IRAs when you reach age 70 ½. And if you’ve already retired from your company, you also must begin making withdrawals from your company retirement plan as well. …

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Exploring Roth In-Plan Conversions

Brief History The Economic Growth and Tax Relief Reconciliation Act of 2001 authorized the establishment of Roth 401(k) accounts beginning January 1, 2006, which are post-tax retirement account. The next big thing to happen to Roth accounts was the American Taxpayer Relief Act of 2012, which opened the doors to in-plan Roth conversions. Effective immediately …

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10 Steps to Put on Your Retirement Planning Checklist

The average American doesn’t give proper attention and consideration to retirement financial planning for a variety of reasons (excuses). Perhaps you don’t have time in your day-to-day life to squeeze in financial planning because it seems complicated and time consuming. Maybe you think it can be done next year; what’s the rush to do it …

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Timing Rules for SEPs and SIMPLE-IRAs Part II

For the most part, SEPs (Simplified Employee Pensions) and SIMPLE (Savings Incentive Match Plan for Employees)-IRAs live up to their billing as easy ways to set aside tax-favored retirement funds for employees and employers. However, contribution rules for these plans are not necessarily straight-forward. To read part I of this post dealing with SEPs, click …

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Timing Rules for SEPs and SIMPLE-IRAs Part I

For the most part, SEPs (Simplified Employee Pensions) and SIMPLE (Savings Incentive Match Plan for Employees)-IRAs live up to their billing as easy ways to set aside tax-favored retirement funds for employees and employers. However, contribution rules for these plans are not necessarily straight-forward. SEP plans: Business owners can set up and fund their SEP …

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Retirement Plan Considerations for Terminated Employees

When facing the unfortunate circumstance of employee resignations and retirements or having to terminate or layoff employees, companies should be aware of certain retirement plan considerations for the employee in addition to supplying information on heath insurance coverage.  Employers should ensure that former employees participating in the company’s retirement plan have the plan’s current Summary …

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