Depending on the age of the client, IRAs (and retirement plans such as 401(k)s) are often their largest asset. Yet, many times, these assets slip through the cracks and their value is not maximized. Here are some common mistakes: Not updating beneficiary designations Unfortunately, an IRA which names your mother or an old flame is going to control, even if your family circumstances have changed and even if your will or trust names different beneficiaries. It’s critical that clients … [Read more...] about 4 Planning Mistakes with IRAs and Retirement Plans
In a blog last month, I wrote about Roth IRAs and promised a future blog regarding conversions from a traditional IRA to a Roth IRA. As I explained in last month’s blog, with traditional IRAs and 401(k)s, the contributions to the accounts are deductible when made. The money in those accounts builds tax-deferred. On the other hand, contributions to a Roth IRA or a Roth 401(k) are not deductible when made. After the account exists for a few years, the distributions from the account are tax-free. … [Read more...] about Converting to a Roth
Saving for retirement is important for all of us and our clients. Some clients know all about their retirement options and others do not. There is often particular confusion about Roth IRAs and Roth 401(k)s and how they differ from their traditional counterparts. With traditional IRAs and 401(k)s, the contributions to the accounts are deductible when made. The money in those accounts builds tax-deferred. For example, let’s say you contribute $5,000 to an IRA. You can deduct that $5,000 from … [Read more...] about What’s a Roth?