This is part of a series of 6 blogs on important estate planning considerations. I’ll intersperse these blogs with other timely blogs. The first article in the series showed how an estate plan prepares one for incapacity during life and not just for the distribution of assets at death. The second article in the series focused on how an estate plan should take into consideration the potential for future Long-Term Care (“LTC”) needs. The third article focused on the differing needs of the … [Read more...] about 6 Important Estate Planning Considerations – Part 5: Retirement Assets
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?
As my prior blog indicated, as the end of the year approaches, your tax liability is beginning to solidify. As the ball drops in Times Square tonight, most of your ability to plan for your 2014 bill goes out with the old year.You could make a contribution to a 529 plan yet today.You can do annual exclusions for up to 5 years.So, if you miss the boat on making a contribution today, you can use future annual exclusions to cover the contribution next year.A 529 plan allows tax benefits for … [Read more...] about Year-End Tax Planning, Part 2
The concept of a “myRA” account was introduced by President Obama in his State of the Union address on January 28, 2014. Clients may hear of this and want to know about it for themselves or their children. What is it? The myRA is a savings plan similar to a Roth IRA. It is designed to allow lower-income workers to have some savings in a tax-preferred savings mechanism. The contributions are contributed after tax and withdrawals of principal are in after tax dollars. The earnings in the plan … [Read more...] about What is a myRA Account?
As we enter the summer of 2012, few people are concerned with year-end matters. However, when the ball drops on New Year’s Eve, there is a scheduled increase in income tax rates nonetheless. As a result, now may be a great time to “Roth” IRAs. Roth IRA Conversion A Roth IRA is similar to a traditional IRA in that the assets in the IRA build without income taxation. However, there are a few features that are different from a traditional IRA. There is no income tax deduction upon contribution to … [Read more...] about 2012 May Be a Good Year to “Roth”