The Stretch IRA is Dead. Does That Mean More Freedom?

If you’ve been staying on top of retirement news over the past 12 months, then you’ve probably read about the passage of the SECURE Act and it’s termination of the stretch IRA as an estate planning tool. Just a quick refresher, but a stretch IRA was an IRA inherited by a beneficiary in which the beneficiary then took required minimum distributions (RMDs) according to his/her life expectancy and not that of the original IRA owner. If the IRA was inherited by a young beneficiary, that meant the funds could grow, possibly over decades, before the inheriting beneficiary reaches 72 and Continue reading The Stretch IRA is Dead. Does That Mean More Freedom?

The SECURE Act Passed. What Does That Mean?

I’ve written about the SECURE (Setting Every Community Up for Retirement Enhancement) Act a number of times over the past year or so. I’m writing now following it’s passing Congress last week as part of the year-end spending bill. Now that President Trump has signed it into law, it goes into effect on January 1, 2020. The legislation is a relatively large overhaul to retirement savings accounts. The two biggest changes are to contributions and required minimum distributions (RMDs). First off, the new law eliminates the age limit for traditional IRA contributions. This means that if you are still working, Continue reading The SECURE Act Passed. What Does That Mean?

Small Business Owner? Don’t Forgo Retirement Saving

If you are a freelancer or small business owner, you probably have a lot to worry about when it comes to your work or business. You have expenses to track, work to do, clients to satisfy, and maybe an employee or two to oversee. With all that, it can be easy to forget about saving for retirement. Not only that, but you don’t have the reminders regarding opening a retirement account or automatic retirement account enrollment that are standards in larger business and corporations. Thus, it’s imperative that you take it upon yourself to think about and take the required Continue reading Small Business Owner? Don’t Forgo Retirement Saving

Will You Really Need RMDs at 70 1/2?

I’ve written about the SECURE Act here many times in recent months as it is legislation that could open up a lot of retirement saving opportunities for a wide swath of Americans. Officially titled as “The Setting Every Community Up for Retirement Enhancement Act of 2019,” this bill could allow for small businesses to band together to offer retirement savings plan benefits, increase the age for required minimum distributions (RMDs), and allow IRA and 401(k) plan holders to purchase annuities with money in the accounts. While all those a good things, this post is really going to focus on the Continue reading Will You Really Need RMDs at 70 1/2?

Multiple IRA Accounts? Here’s a Couple Tips on Efficiency

If you have multiple IRA accounts and are nearing retirement, you may be considering whether or not you should combine those accounts into one account. It’s not uncommon for retirees to want to combine accounts as it creates more efficiency and less things to worry about when it comes to your savings. There is more than one way to go about combining accounts, however, it should be noted that a trustee-to-trustee transfer is considered to be the best method and does not have the limitations of a 60-day rollover. However, combining accounts isn’t the only way to be efficient with Continue reading Multiple IRA Accounts? Here’s a Couple Tips on Efficiency

Divide and Conquer: The Benefits of Dividing an IRA

You’ve heard a lot of talk on this blog over the years about consolidating IRAs, particularly as you move through retirement and as a means of maintaining efficiency and control over your money. What we have rarely talked about is actually splitting up your IRAs, which is also a thought you may want to consider–especially if you want to leave money behind for a spouse or children. If that is the case, you should consider dividing your IRA into two, so that the spouse is named as the sole beneficiary of one of those IRAs and your child (or children) Continue reading Divide and Conquer: The Benefits of Dividing an IRA

Don’t Let a Start-up Wreck Your Retirement

Retirement can be a great time to pursue an interest or passion you’ve had but haven’t had the time or resources to put into while maintaining and actual career. If your passion or interest is developed enough you might even be able to turn it into an income source. That’s where a start-up comes in. While the term “start-up” often gets associated with the Internet and technology, a start-up can really be any type of business. As with any business, though, a start-up requires money and financial resources and it can be difficult to obtain such resources. For some, those Continue reading Don’t Let a Start-up Wreck Your Retirement

Estate Planning Benefits of Having Multiple IRAs

I’ve often talked here about the wisdom behind converting multiple IRAs into one or two accounts as you grow older. Mainly, that it makes it easier to manage your money and to prevent missed required minimum distributions (RMDs), which can result from juggling too many accounts. While consolidating IRAs into as few accounts as possible is still a good idea, today I’m going to talk about an area in which it just might be beneficial to haveĀ  multiple IRA accounts, particularly Roth IRAs: estate planning. If you are interested in leaving bequests for heirs and family members, an IRA can Continue reading Estate Planning Benefits of Having Multiple IRAs

Make It Easier as You Get Older With Account Consolidation

As you work and save up for retirement, you may find it best to have multiple retirement accounts. Sometimes the reasoning behind that is to prevent the commingling of various funds (after-tax vs. taxable) or because an account is set up through a former employer and there are certain perks to having that account. While having multiple accounts is not a problem, it can create inefficiency once you get into retirement. As you grow older, keeping track of those accounts can become tricky and confusing. It lead to issues regarding how much of a required minimum distributions (RMDs) you have Continue reading Make It Easier as You Get Older With Account Consolidation