Converting to a Roth IRA
Bil Lako, CFP® and Dr. Gene discuss some of the major considerations for converting a Traditional IRA to a Roth.
Converting Holdings in an Index Fund to an Index ETF
Portfolio Director Ted Parrish, CFA, offers a listener advice on moving funds from an Index Fund to an Index ETF to save on ongoing expenses.
Health Care Coverage in Retirement
If you are approaching retirement, before you plan your party, you need to consider how you will pay for health care coverage once you are no longer employed. Many retirees significantly underestimate how much they need to pay for medical expenses. For a close look at the questions you need to find answers to and items to discuss with your financial planner about health care in retirement, read this Insurance Know-How.
Catch-Up Contributions
If you are 50 years old or older by the end of your retirement plan year, you are eligible for a catch-up contribution allowed in IRA, 401(k), 403(b) and SIMPLE plans. For more information on the amount of the catch-up contribution allowed by each type of plan and other frequently asked questions, read this Financial Strategy.
Four Things To Do With Your Tax Rebate
If your thoughts of spring include a tax refund check, you may opt to use your windfall to benefit your future, rather than spend it now. Some uses you may consider include adding your refund to your retirement savings or investing in continuing education. For more ideas on how to make your refund work for you, read this C.P.A. Insight.
Exceptions to the 10% Early Distribution Penalty
If you take a distribution from a retirement account before you reach the age of 59 1/2, generally, you will have to pay a 10% early distribution penalty. However, if you take an early distribution to pay for unreimbursed medical expenses or qualified higher education expenses, you may be able to avoid the early withdrawal penalty. For other common exceptions in which you may not be subject to the 10% penalty, read this C.P.A. Insight.
SEP-IRA vs. Safe Harbor 401(k) Plan
Both SEP-IRAs and Safe Harbor 401(k) plans allow small-business owners to provide a qualified retirement saving option to their employees while saving a significant amount for their own retirement. These plans have different funding rules, and should be looked at closely by a business owner. For more information on the differences between SEP-IRAs and Safe Harbor 401(k)s, read this Financial Strategy.
The First Mandatory IRA Withdrawal
When discussing the initial mandatory IRA withdrawal, one can easily become confused by the rules and regulations on when the withdrawal should occur. Assets such as qualified retirement plans, 403(b) Plans, IRAs, SEPs, SIMPLE IRAs and section 457 Plans are all included in calculating a mandatory withdrawal. For more information about your first mandatory IRA withdrawal and to learn how your withdrawal is calculated, read this Financial Strategy.
Investment Strategy for a Child’s IRA
If you have decided to establish an IRA for your child, there are several decisions you must make, including which type of IRA to use and what investments to choose. For more information on how we apply our Ten Year Rule investment philosophy to a child’s IRA, read this Financial Strategy.
Saving to a Roth IRA for Future College Expenses in the Parent’s Name
A Roth IRA account can be used to save for both retirement and education expenses; however, there are some disadvantages to doing so, including lower contribution limits and the possibility of taxed earnings. For more information on Roth IRA rules and how an account affects education savings, read this Financial Strategy.