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Retirement tax strategies require making some of the most important decisions for 2026 before your tax return is ever prepared. That distinction matters. Tax preparation generally reports decisions that have already happened. Tax planning asks whether something should still happen before December 31. With several months remaining in 2026, retirees and people approaching retirement have …
Pension Catch-Up Contributions rules are evolving. If you want to understand the changes and how to prepare for tax season continue reading this article. Individuals age 50 and over can make additional annual “catch-up” contributions to salary reduction plans including 401(k) Deferred Compensation plans, 403(b) TSA plans, 457(b) Government plans and SIMPLE plans. Age 50+ …
Ready to learn about what charitable distributions are and the tax advantages of donating in this particular way? Qualified Charitable Distributions (QCDs) are a highly effective tool in the tax planning toolkit, particularly for retirees who must take Required Minimum Distributions (RMDs) from their Individual Retirement Accounts (IRAs). By directing a portion or all of …
As retirement approaches, many older Americans seek strategies for maximizing retirement savings. Retirement plans often provide “catch-up” contributions, a frequently overlooked opportunity to significantly boost retirement funds. This article explores various retirement plans and their catch-up features, highlighting key opportunities for older taxpayers as they near retirement. Simplified Employee Pension Plans (SEP) SEP IRAs are …
Curious about how the recent tax changes for seniors might impact your finances? In recent legislative developments, the Omnibus Budget Reconciliation Bill for 2025 and Beyond (also known as the One Big Beautiful Bill Act, or OBBBA) has introduced significant tax provisions. Some of these tax provisions are tailored to benefit seniors, ensuring they receive …
The Internal Revenue Service today reminded those who were born in 1950 or earlier that funds in their IRAs and retirement plans face important upcoming deadlines for required minimum distributions to avoid penalties.
Required Minimum Distributions (RMD) are required taxable distributions from qualified retirement plans and are commonly associated with traditional IRAs. However, they also apply to 401(k)s and SEP IRAs. The tax code does not allow taxpayers to indefinitely keep funds in their qualified retirement plans. Eventually, these assets must be distributed, and taxes must be paid …
Considering how to fund an IRA for your nonworking spouse? There may be options if you qualify. One of the fallouts of the pandemic is that millions of people have left of the workforce. Women with families are taking the greatest hit of unemployment. And the worse of it is that while unemployed, these workers …
Considering gifting your IRA to charity and finding it difficult to learn more about it? That’s because their are some complications to the IRA to Charity distribution provision that are just now coming to light. Let us explain more… Required Minimum Distribution (RMD) Provisions Changed Due to COVID Individuals are required to begin taking distributions …
Considering the SEP retirement plan as an option? Like many small business owners, you probably find yourself very busy in the wake of the COVID slowdown. But that is not a valid reason to neglect your future. Especially as there are a number of retirement plans available, including Keogh plans and 401(k)s. However all in …
Considering the advantages of back-door Roth IRAs, but want to learn more? Many individuals who are saving for retirement favor the benefits of Roth IRAs over traditional IRAs. This is because the former allows for both accumulation of account earnings and post-retirement distributions to be tax-free. In comparison, contributions to traditional IRAs may be deductible. …
In 2021, required minimum distributions (RMDs) will resume as they were before the pandemic. As part of the CARES Act, the requirement for older taxpayers to take RMDs from their retirement plans was waived for 2020. This was due to the anticipated drop in value for most investments as a result of the economic effects …
The saver’s credit helps eligible taxpayers offset the cost of saving for retirement. Now, low and moderate income workers can take steps to save for retirement and earn a special tax credit. What is the saver’s credit? The saver’s credit is a tax credit worth up to $1000 ($2,000 if married filing jointly). The saver’s …
You don’t want to fall behind when saving for retirement. And right now, many people are choosing not to add to their retirement savings. Or simply planning for their Social Security income to take care of their needs. To encourage better preparation for retirement, tax laws offer a variety of incentives to help. Watch this …
One frequently overlooked tax benefit is the spousal IRA. Generally, only taxpayers who have compensation can contribute to an IRA. The term “compensation” includes wages, tips, bonuses, professional fees, commissions, taxable alimony received, and net income from self-employment. Spousal IRAs are the exception to that rule as long as the spouse has adequate compensation. A …
Keeping your designated IRA beneficiary current is very important. You may not want your account going to your ex-spouse. And you definitely don’t want your chosen beneficiary to be someone who is deceased. Plus, the decision about whom you wish to designate as the beneficiary of your traditional IRA affects other items including: The minimum …
As part of the CARES Act, the requirement for taxpayers to take required minimum distributions (RMDs) has been waived. This is due to the drop in value for most investments as a result of the economic effects of COVID-19. What are Required Minimum Distributions (RMD) RMDs are required distributions from qualified retirement plans. They are …
If you are struggling financially due to the COVID-19 epidemic, you will be happy to know Congress, as part of the CARES Act enacted on March 27, has made it easier for you to access your retirement savings during this emergency. Normally, withdrawals from traditional IRAs and qualified plans such as 401(k)s, self-employed pension plans (SEPs), tax …
Now as part of the SECURE Act that was included in the Appropriations Act of 2020, and effective for tax years beginning in 2020, individuals who otherwise qualify can make traditional IRA contributions at any age.
On December 20, 2019, President Trump signed into law the Appropriations Act of 2020, which included a number of tax law changes, including extending certain tax provisions that expired after 2017 or were about to expire, a number of retirement and IRA plan modifications, and other changes that will impact a large portion of U.S. …
Explaining the new twist of the IRA to Charity provision is a bit challenging. Ever since 2006, individuals age 70½ or older have been able to transfer up to $100,000 annually from an IRA to a charity (as long as the charity qualifies). These transfers are referred to as qualified charitable distributions (QCDs). Here is …
On December 20, 2019, President Trump signed into law the Appropriations Act of 2020, which included a number of tax law changes. Some of these changes included a number of retirement and IRA plan modifications. This article is one of a series of articles dealing with those changes and how they may affect you. In …
If you are age 70-1/2 or older and have a traditional IRA, a 401(k), or a SEP IRA, the tax law requires you to take at least a minimum amount – referred to as the required minimum distribution (RMD) – from those accounts each year. The tax code does not allow taxpayers to keep funds …
Whether your Social Security benefits are taxable (and, if so, the amount that is taxed) depends on a number of issues. The following facts will help you understand the taxability of your Social Security benefits. For this discussion, the term “Social Security benefits” refers to the gross amount of benefits you receive (i.e., the amount …
