Roth IRA

You may end up relying on Social Security pretty heavily in retirement -- especially if you kick off your senior years with a lower savings balance than you'd like. If you want to score the highest possible paycheck from Social Security, here are a few moves you can make. 1. Save for retirement in the right account What does the retirement plan you choose have to do with the … [Read more...] about 3 Social Security Secrets for Even Bigger Checks

Fidelity Investments, one of the largest brokerage companies in the world, rolled out its latest offering last month: a trading account for 13- to 17-year-olds. One view of Fidelity’s plan is that these accounts are a kind of Wall Street rearguard response to the Robinhood trends of 2021, with Reddit Bro’s driving cryptocurrencies and questionable stocks to the … [Read more...] about Fidelity’s foray into teen investing

Here we go again. The 10-year-rule saga continues, and it is still not over. The issue involves the 10-year rule that most non-spouse designated beneficiaries (like adult children or grandchildren, and certain qualifying trusts) who inherit individual retirement accounts will be subject to under the SECURE Act. It was expected that the 10-year rule would work the same way as … [Read more...] about IRS clarifies the 10-year rule, but with added confusion

The United States Court of Appeals (9th Circuit) recently upheld California’s CalSavers Retirement Savings Program (CalSavers), which provides retirement savings accounts to employees without employer retirement benefit plans. The Howard Jarvis Taxpayers Association sued to challenge the law establishing the CalSavers program arguing that it was superseded by federal retirement … [Read more...] about U.S. Court of Appeals Upholds CalSavers Program | Ervin Cohen & Jessup LLP

This story is part of CNBC Make It's One-Minute Money Hacks series, which provides easy, straightforward tips and tricks to help you understand your finances and take control of your money.If you're young and investing for the first time, you may be facing a confusing decision: traditional IRA or Roth IRA? For most, a Roth is the right choice, according to many financial … [Read more...] about Why young investors should choose a Roth IRA

The United States Court of Appeals (9th Circuit) recently upheld California’s CalSavers Retirement Savings Program (CalSavers), which provides retirement savings accounts to employees without employer retirement benefit plans. The Howard Jarvis Taxpayers Association sued to challenge the law establishing the CalSavers program arguing that it was superseded by federal retirement … [Read more...] about U.S. Court of Appeals Upholds CalSavers Program | Ervin Cohen & Jessup LLP

Let's consider the following scenario of two individuals looking to buy similarly priced dream homes. One was going to deplete their pre-tax retirement savings and the other was going to sell their appreciated non-retirement assets. Since they each had enough money, they both should be affected equally, right? Not really. They’re not equal since the tax treatment for each is … [Read more...] about Your Retirement Account May Not Be The Smartest Way To Buy Your Dream Home

Watch out for the Social Security Tax Torpedo. It’s a hugely unwelcome part of 1983 tax reform, which arrived when the Social Security Administration trust fund was running out of money. (Sound familiar?) But there’s an effective tax-planning strategy to steer clients out of the Torpedo’s path. Wade Pfau, professor of retirement income and director of the Retirement Income … [Read more...] about Avoid the Social Security Tax Torpedo With Roth IRAs: Wade Pfau

Q. My uncle left me a Roth IRA in his will when he recently died. On my beneficiary claim form, I’m requesting a lump sum. Do I check off to withhold New Jersey state income tax? I did check off the federal income tax to be withheld at 10%.— NephewA. We’re sorry to hear about your uncle.Before we answer your question about tax withholding, let’s go over how the rules for Roth … [Read more...] about I inherited a Roth IRA. Will I owe taxes on it?

  What you need to know We’re always being reminded to save for retirement in tax-advantaged accounts like 401(k)s or IRAs. But did you know the government does an about-face and forces us to take money out of those accounts once we reach retirement? It’s called the required minimum distribution (RMD) rule. Here are some tips you should know about RMDs well before you reach … [Read more...] about Forced to withdraw from retirement accounts? – The Willits News