Retirement assets may be a very large part of a person’s estate at death. It’s important to consider the income tax ramifications of naming a beneficiary, as well as protecting those assets for the beneficiaries. This article considers some of these issues. 6 Important Estate Planning Considerations – Part 5: Retirement Assets … [Read more...] about 6 Important Estate Planning Considerations – Part 5: Retirement Assets
Perhaps the largest part of most Americans’ wealth is in their qualified plan or IRA. Planning for these assets is one of the most important parts of the estate plan, for many reasons. This article will discuss the importance of beneficiary designations. Planning for Retirement Plans and IRAs: Beneficiary Designation … [Read more...] about Planning for Retirement Plans and IRAs: Beneficiary Designation
Retirement takes planning. This article includes milestone ages, such as when you must begin taking distributions from retirement plans. The article also includes links to resources which will be helpful in your retirement planning process. Age-Related Retirement Milestones … [Read more...] about Age-Related Retirement Milestones
If your husband or wife survives you, and you have funds in a 401(k), can you disinherit him or her from your retirement account and leave the funds directly to your children – or to another beneficiary? Not without your spouse’s consent. Under a federal law called the Employee Retirement Income Security Act (ERISA), your 401(k) must go to your spouse, unless he or she has signed a written waiver … [Read more...] about Can I Disinherit My Spouse From My 401(k)?
Planning for retirement is no simple task. In addition to figuring out how much you’ll need to live on and how much you should set aside each year, there are so many retirement plans to choose from, each with its own rules and regulations. Here are a few common retirement plan myths, along with the facts you should know. · Your choice of IRA beneficiary is “locked in” once you reach age 70 … [Read more...] about Retirement Plans: Separating Fact From Fiction
When you leave your 401(k) to a designated beneficiary, the money that beneficiary withdraws from your plan is counted as his or her income, and your beneficiary will be liable for income taxes on any withdrawals he or she takes. While you’re alive, you have the option of taking money out of your plan, or leaving it in the plan and allowing it to grow, at least until you reach age 70 ½. After … [Read more...] about Are Withdrawals From an Inherited 401(k)Taxable?
If you work for a private employer, such as a corporation, you likely have a traditional 401(k) plan. And if you don’t have one, you’re likely to be at least familiar with them. A traditional 401(k) plan is a retirement savings plan that’s sponsored by your employer, and that is funded via payroll deduction with pre-tax dollars. Recently, though, a new kind of 401(k) has gained popularity. It’s … [Read more...] about The Roth 401(K)
One of the main goals in having a Power of Attorney is to allow your agent (also called your attorney-in-fact) to fully manage your finances in the event that you develop Alzheimer’s disease, have a stroke, or otherwise become mentally incapacitated. If this happens, you want your agent to be able to step in and take over your financial accounts and your investments. For most people, this … [Read more...] about Power of Attorney and 401(k)? Make Sure They Work Together
If you have an urgent situation – educational expenses, medical bills, a new house – it’s tempting to take an early withdrawal from your retirement account. But, before you do, think about the true impact the decision will have on your finances. What happens when you take money out of your 401(k), IRA, or other retirement account before you reach age 59 ½? Taxes An early distribution from a … [Read more...] about How Much Does an Early Distribution Really Cost?
Qualified retirement plans, such as 401(k)’s and IRA’s have a terminology all their own. Any withdrawal from your account that you take after you reach age 59 ½ is called a Normal Distribution. A Normal Distribution is not the same as a Required Minimum Distribution (RMD). From age 59 ½ to age 70 ½, you’re free to withdraw any amount you wish from your retirement account, including nothing at … [Read more...] about What’s the Difference Between a Normal Distribution and A Required Minimum Distribution?