Entries filed under 'Retirement'

    How NUA Can Help Save Money in Retirement

    June 27, 2016 12:08 PM by Brian Dobbis

    NUA, or net unrealized appreciation, allows for favorable tax treatment of withdrawals of an employer’s stock—but understanding the rules is essential.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    Of all various ways to lower one’s taxes in retirement, net unrealized appreciation (NUA) is often misunderstood or overlooked altogether.  The rules may be complicated, or even short-lived (President Obama’s 2017 budget proposal would eliminate the NUA tax break).  But any plan participant who owns company stock and is separating from service or retiring should be aware of NUA before rolling his/her retirement account into an IRA or a new employer’s plan. 

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    Tips on IRA Rollovers

    June 17, 2016 4:30 PM by Brian Dobbis

    Confused about treatment of both pretax and aftertax dollars in a qualified plan? Here’s some updated guidance from the IRS.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    In case you missed it (many investors have), the IRS offers much-needed guidance on the allocation of aftertax dollars to IRA rollovers. While the administrative language might seem unclear at first, it at least provides a roadmap for splitting a 401(k) distribution that consists of both pretax and aftertax dollars.  

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    How to Avoid IRA Rollover Headaches

    June 9, 2016 2:45 PM by Brian Dobbis

    Keeping abreast of the “60-day” rule and various nuances can protect your nest egg. 

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    After a day of presentations, I recently received a spate of questions regarding the tricky “60-day rule” on IRA rollovers and its many nuances. So let’s revisit the latest regulations, effective January 1, 2015, which are a game-changer.

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    How to Hedge against RMDs

    June 2, 2016 3:30 PM by Brian Dobbis

    Worried about outliving your IRA savings? Some retirees are purchasing qualified longevity annuity contracts (QLACs) within their IRAs to defer a portion of their RMDs up to age 85.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    According to the Stanford Center on Longevity, three out of four Americans indicate that they want to live to 100 if they can do so in good health. Whether they will have enough money to support themselves in retirement, however, is another matter. Some studies suggest that many will struggle, given insufficient savings, pensions, and Social Security. Further complicating matters, IRA owners, once they turn 70½, generally have to take required minimum distributions (RMDs), which are taxable.

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    Five Steps Toward a Smarter Retirement

    May 19, 2016 4:25 PM by Brian Dobbis

    In case you missed it, here’s a handy summary of our most popular blogs among readers. 

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    Of all the conundrums facing financial advisors, none compare with clients’ worries about retirement. After all, many clients have not saved enough for their golden years, and there’s a growing need for income, owing to longer lifespans, low interest rates, rising health costs, and inadequate support from Social Security and pension plans (if your clients even have one.)

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    How Spousal IRAs Can Build Nest Eggs

    May 13, 2016 11:46 AM by Brian Dobbis

    Often overlooked by couples caring for children and/or elderly parents, spousal IRAs can be a valuable tool to save for retirement.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    A common misconception I often hear is that you must have taxable compensation to fund an IRA, as though not having earned income meant that you were out of luck either beginning or further building a nest egg. This is a very costly myth.

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    State-Run Retirement Plans: Ready for Prime Time?

    May 9, 2016 3:15 PM by Brian Dobbis

    While industry critics worry about the practical aspects, state-run retirement plans for private-sector workers have gained momentum. Whether the details bedevil them is another matter.  

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    Now that the Department of Labor (DOL) has issued its final version of the “conflict of interest” rule, we can turn our collective attention to another important happening that is presently taking place in the retirement world, one in which the DOL again finds itself spearheading efforts to expand access to retirement plans to private-sector workers.

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    IRA Alert: Remember Those RMD Rules

    April 28, 2016 1:41 PM by Brian Dobbis

    With so much confusion about required minimum distributions from IRAs, here are some key points on how and when people age 70 1/2 and older must begin their withdrawal.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    "Spend it—or else." That essentially is Uncle Sam’s warning—and the rules are clear: Investors must take required minimum distributions (RMD) from all their IRAs, including SEP and SIMPLE, but not Roth, after reaching age 70½.

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    How to Correct IRA Mistakes

    April 22, 2016 9:47 AM by Brian Dobbis

    The good news: there’s a road map. The bad news: it generally leads to a penalty.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    The Internal Revenue Service (IRS) is probably the last place you’d look for motivational quotes about coping with mistakes.

    Mistakes may be steps up the proverbial ladder. They may be how you learn. They may be forgivable. But the operative view at the IRS is the simple adage that mistakes happen and you had better own up to them.

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    Last-Minute Tax Tip: Mind Your IRA Contributions on Form 5498

    April 15, 2016 3:48 PM by Brian Dobbis

    You don’t have to send this form to the IRS because they get a copy as well. But be sure to review it for errors and file with your records.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS 

    Building a retirement nest egg takes a concerted effort, especially when it comes to the assortment of government paperwork for IRA compliance. Several weeks ago, we covered the often overlooked Form 8606, which reports nondeductible contributions. Now it’s time to explain Form 5498, which is all about reporting IRA contributions, including SEP and SIMPLE accounts.

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