Retirement can be a long way off for teenagers, but given how much retirement can cost–and the costs will probably continue to rise throughout future generations–there’s no such thing as getting too early of a head start. No, you teenager might not fully appreciate how much such steps may help in the future, but that shouldn’t be a good enough reason not to at least talk to your teenager about starting to save for retirement as soon as they are able. Of course, you can start off through conversation. However, if you really want to make an impression, you may Continue reading Help Your Children Get a Let Up in Retirement
I’ve focused a lot on Coronavirus and how it has or may affect retirement plans for many. I see no reason to change that theme now. While parts of the country are starting to re-open, many areas are still largely shut down. There is also a lot of uncertainty surrounding opening up parts of the country. What happens in infections spike in areas that are reopening and they have to shut down again? Many predict, such a situation is a real possibility for places opening without a proper plan. It can be easy to become cautious regarding saving for retirement Continue reading Staying Focused on Retirement During Trying Times
If you’ve been reading up on the SECURE Act, then you are probably well aware of the fact that it eliminated the age restriction on contributions to traditional IRAs. This is a big deal for those Americans planning to work into their 70s by allowing them to put money into their traditional IRAs while they continue working. It should be noted, though, that removal of the age restriction does not remove required minimum distribution (RMD) age requirements. That means that people will still need to begin taking RMDs from a traditional IRA at 72, even as they are still making Continue reading Money In, Money Out: The SECURE Act and Age Restriction Changes
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?
We’re a little less than 10 days away from Christmas, so chances are, you’ve probably done all your holiday shopping at this point. However, if you’re looking for a few more gift ideas for your children or grandchildren, then maybe you might want to consider something with a focus on finances and money. For example, a book on personal finance can be a great gift that can help people more than they may even realize. There are many such books out there covering various aspects of personal finance, so you may want to stick with bestsellers on this. A personal Continue reading Finance Themed Gifts or the Holidays
No, this is not a blog post about dating games, but it is about matches–employer contribution matching, that is. In case you are unfamiliar, employer contribution matching is a retirement benefit in which a company will match contributions you make to your employer-sponsored retirement account (usually a 401(k)). Such benefits usually have certain limitations or rules for eligibility. For example, you may have to work at the company for a certain length of time before being eligible or you have to contribute a certain amount of your annual income to take advantage of it. While matching contributions are offered by Continue reading Getting Involved With the Match Game
There’s a good chance that you’re familiar with what a Health Savings Account (HSA) is. You may not have one, but you may have considered opening one at some point in recent years as it has become a common offering by many employers. If you are unfamiliar with HSAs, they are tax-free accounts that can be used to pay for qualified medical expenses and are used in conjunction with high deductible health plans. Distributions used to pay to medical expenses are tax free and there are no income limits for contributions. Furthermore, HSAs can be a great long-term investment as Continue reading Going Up? 2020 HSA Limit Increases Announced
If you work in the public sector or for the government, you’ve probably heard of a type of retirement plan called a Deferred Retirement Option Plan (DROP). A DROP plan allows for an employee to work past their retirement-eligibility date while the employer adds annual, lump-sum payments into an interest-bearing account during that period. Once the employee actually retires, they gain access to the account and all the money in it. It benefits the employer as the employer avoids dealing with an increased pension amount that normally would come with added years of service. It should be noted that DROP Continue reading Public Sector Employee? Look for the DROP!
It’s not talked about nearly as much as Roth IRAs or regular 401(k), but you can have a Roth 401(k). No, not every employer retirement plan offers it. Yes, it does have many of the same advantages as a Roth IRA. If you know what makes a Roth IRA so enticing then you can probably guess the how a Roth 401(k) works. If you guessed that it’s because your contributions are taxed when they go into your account and not when they are distributed, then you are correct. This can be very advantageous, especially if you have an understanding of Continue reading Roth IRA? What About a Roth 401(k)?
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