Changing Jobs? Know Your 401(k) Options
In some cases, you have no choice — you need to use the funds. If so, try to minimize the tax impact. For example, if you have nontaxable after-tax contributions in your account, keep in mind that you can roll over just the taxable portion of your distribution and keep the nontaxable portion for yourself. […]
Saving For Retirement
All investing involves risk, including the possible loss of principal, and there can be no assurance that any investment strategy will be successful. Taxable distributions from retirement plans, IRAs, and annuities prior to age 59½ may be subject to an additional 10% penalty tax unless an exception applies. Due to the Coronavirus Aid, Relief, and […]
2022 Year-End Tax Tips
Here are some things to consider as you weigh potential tax moves between now and the end of the year. 1. Defer income to next year Consider opportunities to defer income to 2023, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a […]
Now Might Be a Good Time for a Roth Conversion
A cost-benefit analysis could help determine whether it would be beneficial to pay taxes on some of your IRA assets now rather than later. One silver lining in the current bear market is that this could be a good time to convert assets from a traditional IRA to a Roth IRA. Converted assets are subject […]
Despite Concerns, Retirement Confidence Remains Steady
For more information on this year’s Retirement Confidence Survey, please visit www.ebri.org. All investing involves risk, including the possible loss of principal, and there is no guarantee that any investment strategy will be successful. There is no assurance that working with a financial professional will improve investment results. Nearly three quarters of workers and 77% of […]
There’s Still Time to Contribute to an IRA for 2021
Making a last-minute contribution to an IRA may help you reduce your 2021 tax bill. If you qualify, your traditional IRA contribution may be tax deductible. And if you had low to moderate income and meet eligibility requirements, you may also be able to claim the Saver’s Credit for 2021 based on your contributions to […]
Retirement Investors: This Back Door May Be Closing for Good
In addition to eliminating the conversion of nondeductible contributions from traditional IRAs to Roth IRAs, the proposed legislation includes a similar prohibition on the conversion of after-tax 401(k) contributions (so-called mega-back-door Roth conversions), as well as other retirement-related provisions affecting those with large account balances ($10 million and higher) and high incomes (more than $400,000 […]
The Budget and the Debt Ceiling: Federal Spending in the Crosshairs
On September 28, Treasury Secretary Janet Yellen informed Congress that the government will be unable to pay all of its bills if Congress does not raise the debt ceiling by October 18 On September 30, 2021, Congress averted a potential federal government shutdown by passing a continuing resolution to provide funding for government operations through […]
Retirement Confidence Remains Strong, Despite Pandemic
Workers who said that they or their spouse participate in a retirement plan were much more likely to have calculated a retirement savings goal than those who do not participate in one. Despite the economic shock of the coronavirus pandemic, American workers and retirees remain largely optimistic about their financial prospects for retirement. In its […]
Common Factors Affecting Retirement Income
When it comes to planning for your retirement income, it’s easy to overlook some of the common factors that can affect how much you’ll have available to spend. If you don’t consider how your retirement income can be impacted by investment risk, inflation risk, catastrophic illness or long-term care, and taxes, you may not be […]
