Recent surveys show that while couples agree investment and retirement plans need adjustment because of the the market’s downturn, they do not agree on how their plans should be adjusted. For more information on what you and your spouse should consider when evaluating your financial future, read this Financial Strategy.
If you are a non-spouse beneficiary of an IRA, the IRS has very specific rules as to how the IRA must be treated to avoid immediate taxation. Tax planning is a must as once mistakes have been made, they cannot be undone, which could result in loosing thousands of dollars to taxes. For more information on how an inherited IRA should be treated, read this C.P.A. Insight.
With so many retirement account balances down, the President passed the Worker, Retiree, and Employer Recovery Act of 2008. This Recovery Act makes it allowable for taxpayers to forego taking a Required Minimum Distribution for 2009. For detailed information on which taxpayers this affects and who it benefits, read this C.P.A. Insight.
When you change jobs, it is generally a good idea to roll assets in your company-sponsored retirement plan into a Rollover IRA.
By adjusting how you allocate your savings for retirement, you are able to benefit the greatest from two of the most popular savings strategy plans, 401(k)s and IRAs. We suggest a savings strategy that is designed to maximize your after-tax return and investment flexibility. For more on savings strategies and how to determine the best amount to contribute, read this Financial Strategy.
For most high-income earners, the decision to make an IRA contribution is a personal one. One significant benefit of contributing to a Traditional IRA is the tax-deferred growth; however a significant drawback is the growth portion of future distributions is taxed as regular income. For the benefits and drawbacks of IRA contributions for high-income earners, read this Financial Strategy.
If you’re faced with a bankruptcy situation, there are federal laws in place that protect your assets held inside qualified retirement plans such as a 401(k) or an IRA. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 extends some of these safeguards. For more information on how much is protected by these laws, read this Financial Strategy.
Funds inside a retirement plan that are exempt from income tax are protected from bankruptcy; however, there are limitations.
If you are planning the sale of your medical practice to finance your retirement, you may need to increase the value of your practice.
The Pension Protection Act of 2006 was aimed at increasing retirement savings. Most notably, employers were allowed to automatically enroll employees in the company’s 401(k) plan.
