Health Savings Accounts (commonly known as HSAs) can be a nice addition to your retirement savings plans. They can provide tax-free funds to help pay for your medically-related expenses–such as monthly medicaid premiums and doctor’s visits–and can also serve as an additional retirement account. Now, I want to follow up on that last part. I am not encouraging you to treat your HSA the same way you would an IRA or 401(k). Yes, you can take withdrawals from your HSA once you turn 65 for non-medical uses and only have to pay taxes on those funds. Depending on your situation Continue reading Including an HSA In Your Retirement Plans
Do you know how much you will need to withdrawal from your nest egg each year in retirement to live the life you want? In other words, do you have a withdrawal plan? A withdrawal plan can be an important part of your retirement plan, especially once you get into retirement. It’s a way to guarantee that your retirement savings last and ensure that you don’t over-withdraw. There are a couple of well-known withdrawal plans out there already. One common plan is known as the 4% rule. With the 4%, you withdraw 4% of your nest egg during your first Continue reading Do You Have a Withdrawal Plan?
You may not realize it, but there the money in your Roth IRA will be distributed in a particular order. The order is important as it will determine any potential tax consequences you may have when you take a distribution from your account. In a Roth IRA, there are generally four (4) classifications of assets within an account: (1) regular contributions, (2) taxable conversion and rollover amounts, (3) non-taxable conversion and rollover amounts, and (4) earnings on Roth IRA assets. Remember, that your contributions are tax-free, but that doesn’t mean that other money in the account is not taxable. Thus, Continue reading Following Orders: Your Roth IRA and Your Money
Are you getting near retirement age and considering making a withdrawal from your IRA, but don’t want to get hit with a penalty if you do? There are multiple ways to withdrawal money from your IRA. However, most of these methods cannot be done until you have reached age 59½. Such methods for withdrawals without penalties include: withdrawal of excess contributions, required minimum distributions (RMDs), qualified higher education expenses, and first-time home purchases, just to name a few. If you are considering taking money out of your IRA, you should talk with a certified financial planner to make sure it Continue reading Withdrawal IRA Money Without Penalties