Category: IRA
The advantage of a traditional IRA or Roth IRA when it comes to inheritance comes down to the circumstances. Since distributions from a Roth IRA are tax-free while a traditional IRA is not, it is understandable that most people consider the Roth IRA has the advantage in inheritance since not having to pay taxes always […]
There are tax breaks to be had while you are living and those that can benefit your heirs after you have passed. Knowing which ones work at what time is key to help mitigate tax liability. While you are living, giving appreciated assets held in a taxable account is a good way to go. When […]
Estate planning may sound like something that only fabulously wealthy people need to do, but nothing could be further from the truth. If you are an adult, you need an estate plan. If you have children, you really need an estate plan. And if you own something that you would like to give to someone […]
Unlike people who work for an employer and can set automatic deductions for their IRA accounts, self-employed people need to set up and contribute to retirement accounts. Two of the most frequently used accounts are the Simplified Employee Pension (SEP-IRA) and the Solo 401(k). Contributions to both are tax-deductible, allowing the entrepreneur to obtain tax-deferred […]
For most people, turning down a million dollar inheritance seems crazy – but if you are already wealthy, turning down certain inheritances makes sense. When done correctly, turning down an inherited IRA can avoid increased tax liabilities. You’ll need expert guidance to handle this properly. Large IRAs present certain challenges to heirs. Currently, the beneficiary’s […]
“This decision points to a significant chunk of American wealth that is now, quite clearly, no longer as ‘bulletproof’ from creditors as most thought,” Eleanor Blayney, the Board of Certified Financial Planners’ consumer advocate, wrote in a recent blog posting. Creditors and bankruptcy attorneys will have an easier time going after inherited retirement assets, thanks […]
Ordinarily, the deadline for taking this so-called required minimum distribution is Dec. 31. But for your first such distribution you get until April 1 of the year following the year you turn 70½ to make the withdrawal. Do you know when you can withdraw from your IRA? According to the tax law, from age 59½ […]
This valuable estate-planning tool can help your beneficiaries make the most out of their inheritance but many investors do not know about these stretch provisions. This leaves retirees with the important question: Should they force their beneficiaries to stretch the inherited IRA? What is a “stretch IRA” strategy? A recent Forbes article titled “Should I […]
When it comes to retirement investing, the dangerous moving part is — you. According to a recent Forbes article titled “Avoid This Common And Dangerous Retirement Blunder“, when the retirement account balance hits a large figure like $100,000, people begin to think about borrowing against their 401(k) for a new car or a vacation. That […]
In a unanimous ruling written by Justice Sonia Sotomayor, the court said inherited IRA money not received from a spouse isn’t protected in bankruptcy proceedings. The Supreme Court ruling applies to inherited IRAs but not to other types of retirement accounts. It also clarified instructions in the Bankruptcy Code, as millions of baby boomers begin […]
