With the continuing budget debate on Capitol Hill, the future for tax rates may appear uncertain. A Roth IRA conversion can be a strategic move for clients to hedge against tax rate increases, and shore up tax diversification strategies in retirement. Hear more about these and other strategies for Roth conversions. 284679
With an October 15 deadline to “undo” a Roth IRA conversion, now is an opportune time to reach out to clients who may want to reverse that transaction. Clients who converted a traditional IRA to a Roth IRA in 2012 have until October 15, 2013, to reverse or “recharacterize” the conversion, transferring the assets back
Will you live to be 100? While no one can predict the future, longevity is an important consideration when planning for retirement. A longer life could extend retirement years, and issues like inflation, health-care costs, and withdrawal rates may become increasingly important issues to navigate. To meet retirement income goals, clients will want to understand
The latest data on the future viability of federal social insurance programs are mixed. While the outlook for Medicare improved slightly in the recently-released Social Security Administration Trustees’ annual report, Social Security’s anticipated insolvency date remained unchanged at 2033. As Social Security and Medicare remain a significant part of retirement planning for most workers, it
Three proposals being debated on Capitol Hill would limit many investors’ ability to plan for retirement. As Washington lawmakers grapple with the federal budget deficit, some retirement accounts and provisions have come under scrutiny. Here are three proposals that have been introduced: 1. Scale back retirement plan contributions Originally proposed in the 2010 Simpson-Bowles Commission
Americans are on track to save 61% of current income in retirement, according to Putnam’s latest Lifetime Income ScoreSM survey. The study also found that those best positioned for success shared these characteristics: Have access to workplace savings plans Defer 10% or more of their income Work with a financial advisor Conducted with Brightwork Partners
A big concern for workers is ensuring that their assets last in retirement. As workers plan for retirement, they may want to understand that withdrawal rates and investment style in retirement can significantly impact how long those assets will last. That is why it is important for pre-retirees to seek professional financial advice. Selecting a
Limitations on tax deductions for high earners and a reduction in expected Social Security benefits are among many provisions in President Obama’s FY 2014 budget proposal. The $3.77 trillion budget, released this week proposes more than $1 trillion in savings from spending cuts, entitlement reforms, and interest savings. Additional revenue from reforming the tax code
The new federal tax law expands the use of Roth IRAs in retirement plans, opening the door for tax diversification. Roth savings accounts were introduced to 401(k) plans by the Economic Growth and Tax Relief Reconciliation Act of 2001. This law allowed for the designation of a Roth 401(k) plan beginning in 2006. These plans
While clients who own businesses may be focused on day-to-day business activity, they may not be planning for retirement. In fact, the Small Business Administration reported in 2012 that more than 9 million self-employed individuals lacked retirement plan coverage, and that only 19.5% of workers in firms with less than 100 employees participated in a