Nov. 30 is the deadline to reverse, replace or reinvest any unwanted 2009 Required Minimum Distributions (payouts) from retirement plans.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
Showing posts with label retirement. Show all posts
Showing posts with label retirement. Show all posts
11/25/09
9/11/09
BusinessWeek Magazine (Sept 10, 2009) says, "investors have turned away from anything remotely risky."
The next big risk is not declines in portfolio value, it's TAXES. Taxes will devour retirement savings if not planned properly.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The next big risk is not declines in portfolio value, it's TAXES. Taxes will devour retirement savings if not planned properly.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
12/22/08
Changes to Required Minimum Distributions for 2009
Congress has passed a change to the Retirement Account rules that require taxpayers to take minimum annual withdrawals after age 70 1/2. If the president signs the bill as expected, the change will be effective for tax year 2009.
Don't be confused and don't fail to withdraw for 2008. There is no change to the rules for required minimum distributions for 2008. The penalty for failure to withdraw the required distribution is onerous - 50% of the required amount not withdrawn.
I proposed a similar change to Indiana senators Bayh and Lugar, and retirement industry experts, several weeks ago. However, I hoped that the change would have been effective for 2008, and it will not be.
RMDs reduce account balances. This is not a good strategy for taxpayers who don’t need the money to live on and who want to keep compounding the money in the account, but the government wants distributions to occur so that they can be taxed.The amount of the RMD is calculated on your retirement account balance at the end of the previous year. In general terms, if your account is worth 40% less now than last December, your RMD would be 40% less if calculated on today’s balances as opposed to last year’s balance. A lower RMD would leave more in the account to compound and grow. A higher RMD further depletes an already devastated account.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay.
Don't be confused and don't fail to withdraw for 2008. There is no change to the rules for required minimum distributions for 2008. The penalty for failure to withdraw the required distribution is onerous - 50% of the required amount not withdrawn.
I proposed a similar change to Indiana senators Bayh and Lugar, and retirement industry experts, several weeks ago. However, I hoped that the change would have been effective for 2008, and it will not be.
RMDs reduce account balances. This is not a good strategy for taxpayers who don’t need the money to live on and who want to keep compounding the money in the account, but the government wants distributions to occur so that they can be taxed.The amount of the RMD is calculated on your retirement account balance at the end of the previous year. In general terms, if your account is worth 40% less now than last December, your RMD would be 40% less if calculated on today’s balances as opposed to last year’s balance. A lower RMD would leave more in the account to compound and grow. A higher RMD further depletes an already devastated account.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay.
12/2/08
When to begin taking Social Security benefits
A common way of deciding when to begin taking Social Security benefits has been to calculate the break-even age. That's the age the client must live beyond in order for the highter, delayed benefits to provide a higher lifetime income.
However, the break-even method omits many factors that can influence the age at which benefits should begin, including cost-of-living adjustments (COLAs), taxes, and spousal benefits.
Contact me to help you decide when is the best age for you to start Social Security benefits.
Making the wrong choice could cost you more than $100,000 over a 30-year period.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay.
However, the break-even method omits many factors that can influence the age at which benefits should begin, including cost-of-living adjustments (COLAs), taxes, and spousal benefits.
Contact me to help you decide when is the best age for you to start Social Security benefits.
Making the wrong choice could cost you more than $100,000 over a 30-year period.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay.
11/26/08
Possible changes to Required Minimum Distributions
The Wall Street Journal is reporting that Congress is considering possible changes to the Retirement Account rules that require taxpayers to take minimum annual withdrawals after age 70 1/2 – perhaps allowing to delay the withdrawals or reducing the required amount. There may also be some tax relief for taxpayers who have have already received the required minimum distributions (RMD) for this year.
These are changes that I proposed to Indiana senators Bayh and Lugar, and retirement industry experts, several weeks ago.
RMDs reduce account balances. This is not a good strategy for taxpayers who don’t need the money to live on and who want to keep compounding the money in the account, but the government wants distributions to occur so that they can be taxed.
The amount of the RMD is calculated on your retirement account balance at the end of the previous year. In general terms, if your account is worth 40% less now than last December, your RMD would be 40% less if calculated on today’s balances as opposed to last year’s balance. A lower RMD would leave more in the account to compound and grow. A higher RMD further depletes an already devastated account.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay.
These are changes that I proposed to Indiana senators Bayh and Lugar, and retirement industry experts, several weeks ago.
RMDs reduce account balances. This is not a good strategy for taxpayers who don’t need the money to live on and who want to keep compounding the money in the account, but the government wants distributions to occur so that they can be taxed.
The amount of the RMD is calculated on your retirement account balance at the end of the previous year. In general terms, if your account is worth 40% less now than last December, your RMD would be 40% less if calculated on today’s balances as opposed to last year’s balance. A lower RMD would leave more in the account to compound and grow. A higher RMD further depletes an already devastated account.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay.
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