Retirement Watch Weekly
Congress is Coming After Your Legacy and Estate Plan: What You Should Know and Do Now
The push for higher taxes has begun, and estate taxes are among the first in line. Millions of people who haven’t had to worry about estate and gift taxes in recent years need to rethink their plans. Congress first went after your legacy and estate plan in 2019 in the Setting Every Community Up for […]
The Biggest Retirement Trend Affecting Your Nest Egg in 2021
Some key investment and economic trends of the last few years started to change in the last few months. I believe those changes will continue, and probably accelerate, through the rest of 2021. One change, which I’ve been highlighting for my paid-up Retirement Watch members, is that returns from U.S. stocks are unlikely to continue […]
How to Calculate the Required Minimum Distribution
The required minimum distribution (RMD) rules limit the extent to which an individual can use the tax deferral of an IRA or other qualified retirement plan. The RMD rules dictate when distributions must be made from the retirement plans of certain taxpayers. The rationale behind the RMD rules is that Congress provided the tax benefits […]
Bob’s Journal for 4/22
Economic Growth Surges Past Expectations The latest economic data show the economy is growing faster than most economists expected and faster than is currently priced into the markets. Almost all the data released recently were more positive than expected, and much of the data greatly exceeded expectations. Retail sales surged in March and showed that […]
Tax Court Shows Risks in Self-Directed IRAs & Unconventional Investments
A self-directed IRA is a good way to invest your retirement account in non-traditional investments. But a recent Tax Court decision shows the dangers of taking shortcuts and not setting up and operating the IRA the right way. In the case, the taxpayer had a SEP-IRA (Simplified Employee Pension Individual Retirement Arrangement). The custodian was […]
Can I Reinvest My Required Minimum Distribution?
The tax code and regulations have detailed and specific rules concerning who must take required minimum distributions (RMDs), when they must be taken, and how they are calculated. But there is no guidance about what a retirement plan owner or beneficiary can do with the RMD. The required minimum distribution (RMD) rules limit the extent […]
Taking a Fresh Glimpse into How the Pandemic Affects Social Security
The COVID-19 pandemic caused more people to retire early than the number of people that it forced to delay retirement. That reality is going to cause the retirement trust fund to run out of money faster than previously expected. More than 3.1 million Americans aged 55 or older plan to apply for their Social Security […]
How to Get Tax Breaks for Helping Relatives [2021 Tax Write-Off Update]
It is common for family members to help other family members, financially. It is also common for these families to leave money on the table by not taking all the tax breaks they could from these situations. Often, adult children provide financial or other support for their parents, though other situations do arise. Sometimes, the […]
