- I’m 65, Taking Social Security and Have $830,000 in a 401(k). Is It Too Late to Convert to a Roth IRA?
There is no age limit on Roth conversions, so you can transfer pre-tax savings into a Roth IRA regardless of your age or retirement status. As long as you have qualifying funds in a pre-tax portfolio, you can move them to an after-tax Roth account. A financial advisor can help you make important decision surrounding… read more…
- What Is a Life Insurance Annuity?
A life insurance annuity is a benefit payment option for a life insurance policy. If you are a beneficiary of a life insurance policy, you may have the option to receive your payout in the form of a life insurance annuity. In this case, when the policyholder dies, the insurance company will place your payout… read more…
- Is it Wise to Convert 10% of My 401(k) into a Roth IRA Each Year to Avoid Taxes and RMDs?
A Roth IRA has a couple of significant advantages. Most notably, they allow your retirement savings to grow tax-free (as opposed to tax-deferred) and they have no required minimum distributions (RMDs). If your priority is to control your retirement savings, then a Roth IRA might be the right choice. However, Roth IRAs have their disadvantages… read more…
- I’m 55 With $1.2 Million in My 401(k). Would Catch-Up Contributions Be Worth It?
Catch-up contributions are designed to help people save extra money in tax-advantaged retirement accounts once they hit age 50. For many savers who are behind on their retirement savings goals, catch-up contributions represent a not-to-be-missed second chance at securing a more comfortable retirement. A financial advisor can help you plan and save for retirement. Connect… read more…
- I Want to Convert $920k from a 401(k) to a Roth IRA. How Can I Reduce Taxes?
Transferring funds from a 401(k) into a Roth IRA lets you make tax-free free withdrawals in retirement, avoids rules on mandatory distributions and adds flexibility for estate planning. However, when converting a large amount of money, the potential tax bill becomes a major issue. Fortunately, strategies exist that can reduce the tax bill significantly and… read more…
- A Successful Retirement May Hinge on Avoiding These Careless Mistakes
Deciding to retire can feel a bit unnerving. Retirees have plenty to potentially worry about – some of which they have no control over – like how the market will perform and how fast prices at the supermarket will increase. But regardless of the economic environment, simple mistakes can prove costly for retirees. Here are… read more…
- What Is a Retiree Reimbursement Arrangement?
Retiree reimbursement arrangements (RRAs) are a type of savings plan funded solely by employers to help their now retired former employees pay for medical expenses, including Medicare premiums and copays. While RRAs cater to the needs of retirees, active employees may find similar benefits in health reimbursement arrangements (HRAs). A financial advisor can help you… read more…
- What Is a Trusteed IRA?
A trusteed IRA is a type of individual retirement account that is set up as a trust. This account can benefit those who want to have the tax advantages of a traditional IRA and the asset management of a trust. Here’s a breakdown of what you need to know. If you need help deciding which… read more…
- 6 Financial Planning Tips for Retirees
The key to maximizing your retirement will depend on your ability to select financial planning resources that align with your specific goals and finances. Here are six general tips that can help you meet needs at every stage of your retirement planning. For help creating a long-term financial plan, consider working with a financial advisor.… read more…
- What to Know Before Hiring an Advisor for Your Retirement Plan
Financial advisors who offer retirement planning services play an important role in the financial services industry. From devising tax-efficient income strategies to managing investment portfolios with an eye on mitigating risks, these advisors work to ensure that your money lasts through your golden years. However, there’s a lot to consider before settling on a retirement… read more…
- I’m Going to Get $2,800 Per Month in Social Security. How Do I Reduce My Taxes on It?
One of the biggest surprises would-be retirees face when planning their retirement finances is the fact that their Social Security benefits could very well be subject to income tax. A financial advisor can help you plan for Social Security and potentially minimize your tax bill on your benefits. Connect with a fiduciary advisor today. One… read more…
- I’m 70 Years Old With $1.2 Million in an IRA. Is It Too Late to Convert to a Roth IRA?
In retirement, it’s not too late to convert your money into a Roth IRA. The IRS will let you convert qualified funds at any time, as long as you pay the associated taxes. It might, however, be too late to get real benefit from that decision. A Roth IRA works best when it has time… read more…
- What Does Remarrying Do to Your Social Security Benefits?
If you are divorced and considering remarriage, you may be concerned about how this will affect your Social Security status. In most cases, remarriage will not affect your Social Security benefits. If you receive retirement or disability benefits based on your own work history, getting divorced and remarried will not change anything. However, if you… read more…
- What Happens If You Exceed the Roth IRA Income Limit?
The IRS puts annual income limits on a Roth IRA. When you exceed that limit, the IRS generally charges a 6% tax penalty for each year the excess contributions remain in your account. This is triggered at the time you file each year’s taxes, giving you until that deadline to remove or recharacterize the misplaced… read more…
- Can a Nursing Home Take Our Savings? We Have $350,000 in IRAs
A $350,000 account could be exhausted in just a few years if both members of a couple required semi-private rooms in skilled nursing facilities. However, that’s not necessarily what would happen. For one thing, most people don’t run up nursing home bills of that magnitude. Also, you may be able to get government assistance to… read more…
- How Can a Trust Own an Annuity?
Annuities can offer a steady stream of income when you need it most, while trusts provide a structured way to manage and protect your assets for the benefit of your loved ones. But what happens when you consider combining these two powerful tools? Can a trust own an annuity, and if so, what are the… read more…
- How Mutual Funds Can Be Used for Retirement
Mutual funds are commonly used for retirement planning because they offer diversification, professional management and reduced risk when compared with other investments. These investment vehicles pool money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities, with each investor owning shares proportional to their investment. A financial advisor can help… read more…
- What Is Pension Maximization?
Pension maximization is a strategy used by individuals who have a traditional pension plan to potentially increase the amount of retirement income they receive. With traditional pension plans, retirees typically have the option to choose between different forms of payout, such as a single-life annuity or a joint-and-survivor annuity. Pension maximization involves selecting the single-life… read more…
- How a 457(b) Plan Works After Retirement
Government employees, or those of a charity or religious organization, might have the opportunity to invest in a retirement account called a 457(b) account. These are tax-advantaged accounts that can help you effectively save for retirement, but they are subject to rules and laws that you must comply with to keep the tax-advantaged status. Additionally,… read more…
- Can I Use My RMDs to Transfer Money Into My Roth IRA?
If you’re taking a required minimum distribution from an IRA, 401(k) or other tax-deferred account and don’t need the money to cover living expenses, where should you stash that unneeded cash? Investors now need to start taking RMDs at age 73 or, if they were born after 1960, at age 75. Depending on the balances of… read more…
- How Much You Need to Save to Retire With $5 Million
Accumulating a $5 million nest will require saving each month somewhere between a few thousand dollars and a few tens of thousands of dollars, with the difference depending mostly on your age when you start. Other factors include your age at retirement, investment returns and taxes. While $5 million will fund a comfortable and secure… read more…
- What Should I Do With My 403(b) Once I Retire?
If you have an employer-sponsored retirement plan, like a 403(b), leaving your job means you’ll need to decide what to do with your account. When retiring, you have three main options: You can retain your old 403(b) if the plan allows it, roll your money over into an IRA or a Roth IRA, o4 withdraw… read more…
- I’m 60 With $1.1 Million in an IRA. Is It Worth Converting $100,000 Per Year to a Roth to Avoid RMDs?
Required minimum distributions, or RMDs, are a problem for some retirees. If that’s your situation, a Roth conversion may be able to help. The advantage to switching your money from a pre-tax portfolio, like a traditional IRA, to a post-tax Roth IRA is an end to RMD concerns. Since you’ve already paid taxes on the… read more…
- I’m Getting Divorced This Year at 55 With $800k in a 401(k). How Do I Protect My Finances?
Like all family and property law, divorce is a highly state-specific process. How you will handle a divorce and protect your assets, and what constitutes individual vs. shared assets, will depend entirely on your jurisdiction. As a result, how retirement accounts are treated during divorce proceeds can vary widely from state to state. If you… read more…
- I’m 75 With $900,000 in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
Ensuring that your retirement savings last the rest of your life often requires balancing income with expenses over your projected lifespan. But suppose you have $900,000 in an IRA. You’d also want to consider whether you want to leave behind a financial legacy. And since all long-range forecasts are subject to change, you’d need to… read more…