With the April 15 deadline approaching for making a 2013 tax year contribution to an individual retirement account, it is a good time to talk about tax strategy. And with varying types of IRAs available, clients of all income levels may benefit. Higher-income clients who may not be eligible to contribute to a Traditional or
Being self-employed has many advantages, such as having more autonomy. But being in charge also means more responsibility for business finances and, in some cases, entrepreneurs neglect their own personal planning. Many entrepreneurs will not save enough for the future unless they make retirement savings a priority. A recent TD Ameritrade survey found that 40%
Combining Social Security benefits with 401(k) assets can help long-term savers replace more than 60% of current income in retirement, according to a recent report from the Employee Benefit Research Institute. While many clients are probably planning to include Social Security as a source of retirement income, they may not be aware of certain factors
Chris Hennessey shares several resources, such as the Worker Adjustment and Retraining Notification Act (WARN), to identify companies that are hiring and firing, and explains how to use LinkedIn to network for individuals who may be on the move and want to roll over their retirement assets or sell company stock. By law, employers with
Roth IRA conversions are on the rise following tax law changes — expanding access for more clients to take advantage of the opportunity to diversify the tax status of their retirement savings. Converting tax-deferred retirement assets, such as traditional IRAs, to a Roth increased significantly in 2010. This took place after new tax provisions were
Some 401(k) plans allow participants to transfer money while they are still working. If your plan provides for in-service withdrawals, funds may be transferred to an individual retirement account, which could provide access to more investment options and the ability to consolidate accounts. Transferring funds out of a 401(k) could have some disadvantages, however, such
Married couples have multiple options to claim Social Security in retirement, including specific strategies that use the timing of the claim to maximize spousal benefits. In certain cases, these strategies can result in an increase in both lifetime and survivor benefits. Two of the most common strategies are restricted application and file and suspend. Here
Most retirees will rely on Social Security for retirement income, but those who claim the benefit too early may be short-changing themselves. Social Security provides a retirement income stream Social Security plays a critical role in any comprehensive and sustainable retirement income plan. Social Security benefits currently provide more than half of retirement income for
The Internal Revenue Service requires retirees to take annual minimum distributions from individual retirement accounts (IRAs). In situations where clients don’t rely on that money for income, they may consider making a charitable donation with the proceeds. IRA account owners must start taking required minimum distributions at age 70½, and report the distribution as taxable
December can be a busy month for clients, particularly those 70½ and older who must take required minimum distributions from their retirement accounts before year-end. This requirement may present a planning opportunity to meet with clients who may not rely on these distributions for income. Help family members save for college Grandparents may use RMDs