How much should you withdraw from your tax-deferred 401(k) or IRA, and in what form? Here's a brief summary of four retirement income withdrawal methods to help you optimize the decumulation of your retirement income portfolio prudently.
The American Opportunity Credit (for college students) and the Lifetime Learning Credit - for undergrad, graduate and vocational students - are the two education tax credits available from the federal government. Students can claim either of the two credits for schooling costs, or their parents can - provided they don't opt for married filing separately.
In the first and second quarters of 2019, productivity of U.S. workers surged. Meanwhile, the labor force participation rate was higher than expected by the U.S. Government's research arm, the nonpartisan Congressional Budget Office.
Negative rates abroad have driven down bond yields in the U.S. and could make the stock market multiple expand.
Negative rates abroad are driving down bond yields in the U.S., which could make the stock market multiple expand. Investing always carries risk, and current financial economic conditions are unprecedented. For the first time in modern history, you have to pay the bank to hold your money in Europe! You have to pay a bond issuer to hold your money. Here's a factual analysis of factors driving what's happening and how it might affect your portfolio.
For years, year-end tax tips were delivered in this space every September, but this year's story is a real cliffhanger. The twist in the plot is the pending tax legislation. Ironically known as the SECURE Act, an acronym, the legislation is officially named, "Setting Every Community Up for Retirement Enhancement." The bill is likely to cause frantic last-minute tax maneuvering at the end of 2019.
After the manufacturing sector numbers for August were published on Tuesday, September 3rd, the financial press erupted with grim headlines. Largely absent from the coverage was proper context: The manufacturing purchasing managers index has predicted six of the last three recessions, and manufacturing accounts for about 12% of U.S. economic activity. Here are the facts.
The day the yield curve inverted, on Wednesday, August 14th, stocks plunged and financial headlines turned grim. Should you worry? Or is the yield curve inversion the financial fakeout of 2019?
If you own a $1 million IRA account and live in a state with a high income-tax rate, here's a financial planning tip that could save you thousands annually on state income tax. The strategy requires setting up a trust in a state with no income tax, which is probably not something you do every day. So, here's a primer.
"Financial peace of mind" is an overused term in financial services marketing. However, the help we provide in settling financial details of your estate indeed may bring you genuine-and eternal-peace of mind.
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Say Goodbye To Stretch IRAs And Get A New Plan
Bid adieu to stretch IRAs! A new tax law widely expected to become law by the end of 2019 will kill this strategy for passing on your IRAs to the next generation while minimizing the amount that goes to Uncle Sam. Adoption of the legislation is not sure, but it is highly likely, making it wise to plan now for the demise of the stretch technique.
If you previously planned to enable your IRA beneficiaries — this does not include your spouse — to inherit your IRA and stretch out distributions over their lifetime, your plan for minimizing the tax impact to your heirs is likely to become obsolete on January 1, 2020.
To be clear, if you die after 2019 and your children are your IRA beneficiaries, you'll need to rethink your plan for minimizing their tax payments. The new law will require your IRA to be distributed by your heirs over 10 years instead of their actuarial life expectancy.
If you previously set up a conduit trust for your IRA beneficiaries, it will be important to amend your plan, or your beneficiaries may face an unexpected tax bill and sudden cash drain.
Exceptions are carved out in the new law for the disabled and minors as well as surviving spouses. However, the new tax bill will make it wise for more individuals to convert to a Roth IRA and employ other tax planning strategies that require individual advice to minimize your taxes in passing IRA accounts to the next generation.
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