Entries filed under 'IRA Eligibility'

    Halloween Tip: Light Up Your IRA Checklist

    October 28, 2016 9:17 AM by Brian Dobbis

    Now that year-end is approaching, be sure to review important deadlines and retirement plans before the holidays set in.  

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    Once you get past all the trick-or-treaters on Halloween, why not get a jump on year-end retirement planning before hectic holiday schedules keep you awake at night. Consider these important questions:

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    Catching the IRA Wave

    March 26, 2015 5:30 PM by Brian Dobbis

    As April 15 approaches, the window is closing on the opportunities for advisors to capture both 2014 and 2015 IRA contributions.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    With only a few weeks left in the IRA season, this week’s blog contains a compendium of both IRA limits and business-building ideas. Remember: Virtually anyone with a reportable earned income is eligible to fund an IRA. Earned income is the sole requirement. Also worth repeating: through April 15, 2015, investors can still fund IRAs for 2014.

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    Saving for Retirement: Be Careful Not to Over Save

    March 5, 2015 5:15 PM by Brian Dobbis

    Rules governing excess contributions make it potentially costly to overfund an IRA.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    When it comes to IRAs, you can have too much of a good thing. And that’s a bad thing.

    It’s a common error to overfund IRA accounts. "Excess contributions," as the IRS refers to them, typically occur when individuals unwittingly deposit funds that are not permitted to be made to IRA accounts. Much of the time, account owners are unaware that they ran afoul of the rules and, upon being made aware of their error, are unsure of how to correct it. Paradoxically, in order to fix the mistake, time is of the essence—but the account owner first must be aware of the error.

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    Roth IRAs: It's Never Too Late to Save

    January 29, 2015 2:20 PM by Brian Dobbis

    Roth IRAs can be funded at virtually any age. That means individuals can fund accounts with the intention of passing them on to heirs. Beneficiaries inherit the potential to withdraw the funds tax-free. 

    It has been well established that people generally can expect to live considerably longer than previous generations—and they should plan accordingly. With that in mind, individuals who are approaching or already in retirement shouldn’t be discouraged from establishing retirement savings accounts later in life. On the contrary; advisors whose clients are mindful of their legacies might want to encourage them to establish Roth IRA accounts with the intention of leaving the assets to their heirs.

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    IRA Season 2015: Almost Anyone Can Participate

    January 2, 2015 12:45 PM by Brian Dobbis

    The three months leading up to the April 15 federal tax filing deadline are considered peak IRA season, when investors still can make contributions for the year just ended, as well as for the new year.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    In 2014, Individual Retirement Accounts (IRAs) celebrated two milestones: turning 40 and surpassing $7 trillion in assets. And they show no signs of slowing down. IRA assets are due to increase to more than $9 trillion by 2018. A significant portion of this growth is being fueled by rollovers from 401(k) and other workplace retirement plans.

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    The Gift that Keeps on Giving

    November 20, 2014 3:45 PM by Brian Dobbis

    A Roth IRA carries the potential for future tax-free income and could be the gift of a lifetime for a young adult.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    You are not likely to find this item on your teenager’s holiday wish list. In fact, most young adults don’t even know they want one, and typically they need a little time to fully appreciate it. But once they discover the potential power of this gift, their gratitude will be sincere. I’m talking about a Roth IRA—one of the rare gifts that really does have the potential to keep on giving.

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    Backdoor Roths: An IRA Strategy for High-Income Earners

    October 30, 2014 1:25 PM by Brian Dobbis

    Going through the back door can pay off for upper-income retirement savers.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    When the Federal government allowed the establishment of Roth IRAs, it closed the door on certain high-income earners. The front door, that is. Advisors who have such clients might want to bring them around back, where the door is likely to be open.

     

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    Reality Check on IRAs

    August 14, 2014 4:00 PM by Brian Dobbis

    Misconceptions about eligibility may explain why only 15% of qualified individuals have IRAs. 

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    Anyone who has compensation (i.e., earned income, as defined by the IRS) is eligible to fund a traditional IRA or a Roth IRA. The sole exception to the earned-income requirement is a spousal IRA, which is funded by a working spouse on behalf of a spouse who has little or no income. Spousal IRA rules permit a working spouse to fund an IRA in the name of the nonworking spouse.

    Although it is easy to become eligible to contribute, only an estimated 15% of eligible taxpayers made an IRA contribution in tax-year 2012, according to the Investment Company Institute. The low participation rate can partly be attributed to investors’ misconceptions about eligibility and compensation

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