Regardless of which path you choose with your retirement accounts, keep in mind that generally, you’ll be required to begin taking minimum distributions from employer-sponsored plans and traditional IRAs in the year you reach age 70½; you can delay your first distribution as late as April 1 of the following year. Taxable distributions from traditional […]
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Four Ways to Double the Power of Your Tax Refund
The IRS expects that more than 70% of taxpayers will receive a refund in 2017.¹ What you do with a tax refund is up to you, but here are some ideas that may make your refund twice as valuable. Double your savings Perhaps you’d like to use your tax refund to start an education fund […]
What are some tips for creating a home inventory?
Imagine having to remember and describe every item in your home, especially after you’ve been the victim of a fire, theft, or natural disaster. Rather than relying on your memory, you may want to prepare a home inventory — a detailed record of all your personal property. This record can help substantiate an insurance claim, […]
How can I prepare financially for stormy weather?
Floods, tornadoes, torrential rain, lightning, and hail are common events in many parts of the country during the spring and may result in widespread damage. Severe weather often strikes with little warning, so take measures now to protect yourself and your property. Review your insurance coverage. Make sure your homeowners and auto insurance coverage is […]
Why a Life Insurance Claim May Be Denied
As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Any guarantees associated with payment of death benefits are based on the claims-paying ability and financial […]
Why Diversification Matters
Diversification and asset allocation are methods used to help manage investment risk; they do not guarantee a profit or protect against investment loss. When investing, particularly for long-term goals, there is one concept you will likely hear about over and over again — diversification. Why is diversification so important? The simple reason is that it […]
Due Date Approaches for 2016 Federal Income Tax Returns
Tax filing season is here again. If you haven’t done so already, you’ll want to start pulling things together — that includes getting your hands on a copy of last year’s tax return and gathering W-2s, 1099s, and deduction records. You’ll need these records whether you’re preparing your own return or paying someone else to […]
What’s the Difference Between a Direct and Indirect Rollover?
If you’re eligible to receive a taxable distribution from an employer-sponsored retirement plan [like a 401(k)], you can avoid current taxation by instructing your employer to roll the distribution directly over to another employer plan or IRA. With a direct rollover, you never actually receive the funds. You can also avoid current taxation by actually […]
Can the IRS Waive the 60-Day IRA Rollover Deadline?
If you take a distribution from your IRA intending to make a 60-day rollover, but for some reason, the funds don’t get to the new IRA trustee in time, the tax impact can be significant. In general, the rollover is invalid, the distribution becomes a taxable event, and you’re treated as having made a regular, […]
Grandparents Can Help Bridge the College Cost Gap
Assets in 529 plans reached $266.2 billion, spread over 12.7 million accounts, as of the second quarter of 2016. Source: College Savings Plans Network, 529 Report: An Exclusive Mid-Year Review of 529 Plan Activity, September 2016 For many families, a college education is a significant financial burden that is increasingly hard to meet with savings, […]
