401(k)s, IRAs, pensions, and Social Security — the tax rules that follow you into retirement and how to plan around them.
As part of the continuing discussions about health care reform, the spectre of how to pay for it has risen again. Yeah, cause that’s how it apparently works in Congress. Much like college students, the plan is to figure out how to pay for all the binge-spending “later.” So, with that in mind, consider this:…
I don’t practice family law. I don’t litigate. I don’t take worker’s compensation settlements. I’m a tax lawyer. I do tax law. And sometimes that means I dip into related areas, but when it gets beyond my area of expertise, I tap into the collective experiences of my colleagues. This makes sense to me. I…
My inbox is crowded with queries from retirees asking me when the $250 economic recovery payments (some folks also refer to them as additional “stimulus checks”) will be mailed out. Well, I finally have an answer. Vice President Joe Biden and Michael Astrue (the Social Security Commish) have announced that checks will be mailed in…
Taxpayer asks: Hi,I am currently retired, age of 60.I have pension income of $48K / yr and investment income of 20K/ yr.What are the tax consequences of converting a 401k of $120K to a Roth IRA?To limit taxes, should the conversion be structured over several years? Thanks, Taxgirl says: Retirement planning is so not my…
Taxpayer asks: What’s the maximum contribution to an IRA for 2008? What about 2009? What happens if I go over? Taxgirl says: Argh! Retirement plan questions are tough because they’re so fact specific. Here are the general rules as they relate to IRA contributions: If you are under 50 years of age at the end…
If you’re still looking for ways to minimize your tax this year, remember that you can make contributions to your IRA thru 4/15 #TwitterTaxTip (For more on twitter tax tips, see my prior explanatory post.)
Taxpayer asks: is a person suppose to take his 401 k statement with him when he gets his taxes done! even though im not taking anything out of it as a penalty and i dont plan on it! sure the 401 k plan is another income but im not taking anything out of it until…
Taxpayer asks: On the 1099R block 7, what is code 7. Taxgirl says: Code 7 in box 7 on Form 1099-R means “normal distribution” for a retirement account. Here’s a handy list of codes: 1 Early distribution, no known exception 2 Early distribution, exception applies 3 Disability 4 Death 5 Prohibited transaction 6 Section 1035…
Girls Gone Wild founder Joe Francis continues to make headlines. Francis did not make a scheduled hearing on yesterday as part of his federal tax evasion case. Francis reportedly claimed that he was sick (*cough*) but some wonder if there might not be more to the story. Francis was scheduled to appear pro se because…
It’s Fix the Tax Code Friday! Over the last few days, there has been a lot of focus on Obama’s nominee for Secretary of the Treasury, Timothy Geithner, and his tax woes. Geithner’s tax problems still from the failure to pay self-employment taxes during his stint at the IMF. Critics on both sides have seized…