Which Retirement Income Tax Strategy Is Right for You?
For many people, thinking about retirement simply means contemplating enjoyable ways of spending time during their golden years. What some people may not account for, however, is the impact taxation can have on savings, investments, and cash withdrawals. Just as it is important to plan your investments—and it is never too soon to start—it is […]
IRA Contributions for 2014 – There’s Still Time
The Internal Revenue Service today reminded taxpayers that they still have until April 15, 2015 to make IRA contributions for 2014, and in many cases, qualify for a deduction or even a tax credit. Roth vs. Traditional IRAs Available in one form or another since the mid-1970s, individual retirement arrangements (IRAs) are designed to enable employees and self-employed people […]
Supreme Court Rules Inherited IRAs are Not Protected in Bankruptcy
A unanimous Supreme Court has held that the funds in an inherited IRA do not qualify for exemption in bankruptcy because they do not share the same characteristics as “retirement funds” that traditional IRAs have. In 2000, Ruth Heffron established a traditional IRA and named her daughter, Heidi Heffron-Clark, as the sole beneficiary. When Ms. […]
Early Retirement Plan Withdrawals and Your Taxes
Taking money out early from your retirement plan may trigger an additional tax. Here are seven things from the IRS that you should know about early withdrawals from retirement plans: 1. An early withdrawal normally means taking money from your plan before you reach age 59½. 2. If you made a withdrawal from a plan last year, […]
