401(k)s, IRAs, pensions, and Social Security — the tax rules that follow you into retirement and how to plan around them.
Just before the holidays, President Bush signed a bill that eliminated the hefty penalty for not taking the required minimum distributions (RMDs) from certain tax-deferred retirement accounts such as traditional IRAs and 401(k) plans for the year 2009. Under the traditional rules, you must begin RMDs for traditional IRAs and 401(k) plans by April 1…
Effective for the year 2008, some taxpayers can save for retirement and earn a special tax credit. This credit, referred to as the “saver’s credit” can offset the first $2,000 contributed to the taxpayer’s IRA, 401(k) and other retirement plans. There is a catch. The credit is only available to taxpayers which meet certain income…
Today, we’re wrapping up a series by guest author Ed Garrison on “Tax Considerations in Retirement Investing.” Ed is the Executive Director of AAFR, the American Association of Future Retirees. If you missed Part 1 of the article, you can catch it here. Enjoy! — Asset Allocation Is Key So how do you know where…
Tax is a pretty broad area of the law. I don’t profess to know it all. Okay, my brothers may say that I think I do, but that’s just for their benefit (and to keep them in their place). I really don’t. One of the subjects which I will freely admit is one of my…
In the midst of all of the chatter about the economic fiasco bailout package, the term “golden parachute” has been bandied about quite a bit. Most folks know it has something to do with executive compensation – but what the heck is it? A golden parachute is an agreement between a company and an employee…
It seems that nobody really knows what to do about Social Security. Or maybe it’s that lots of folks do really know, but nobody has the guts to do it… At any rate, presidential candidate Barack Obama and other Democratic presidential candidates have previously indicated that something needs to happen to save Social Security. Initially,…
Taxpayer asks: I had a IRA from a former employer that was rolled over to a brokerage account in 2006. While preparing for my tax appointment, I contacted the brokerage house to find out if I was due a 1099 as I hadn’t received one. They said no. So I went to my appointment, got…
One of the most important tax changes for 2006 is the increase in the contribution limit for Roth and traditional IRAs rises for those taxpayers who are aged 50 or more. The increase is more than 10% from $4,500 to $5,000. But if you’re under age 50, sorry, the contribution limits remain the same. Even…
Few can argue that our Social Security system doesn’t need fixing. Even fewer can agree on how to fix it. A number of alternatives have been suggested from shelving the entire system and starting from scratch to simply changing the investment schemes available. So, this is your chance to voice your opinion. Today’s Fix the Tax Code Friday question…
Nobody wants a partisan tax blogger. It’s so… impolitic, if you will. So, I’m not going to offer any real commentary about the election on yesterday in terms of winners and losers. You can do your own Wednesday morning quarterbacking. That said, the face of the House has changed drastically with the loss of 27…