Smart IRA withdrawal strategies
|
|
- Cory Walsh
- 5 years ago
- Views:
Transcription
1 Smart IRA withdrawal strategies Fidelity Viewpoints Wednesday, 29 August 2012 Knowing your income needs and options is key. Every year, if you re age 70½ or older, you generally need to withdraw a certain amount of money from your traditional IRA, 401(k) plan, or other workplace savings plan. These minimum required distributions known as MRDs or RMDs are usually taxed as ordinary income. (Part of these distributions may be nontaxable if you've made after-tax contributions to these accounts.) It s important to determine how they fit into your overall retirement income plan, especially if you need the cash flow to cover expenses. While the IRS requires you to take MRDs, you have some flexibility on timing and what to do with the money. For instance, if you don t need it for living expenses, you may want to give it your heirs or a charity. Building a sound retirement income plan one that can match your income sources with your expenses is a critical component in achieving overall financial success during retirement, says Ken Hevert, Fidelity vice president of retirement products. Making the best use of your savings and distributions can help avoid costly mistakes. And if you don't absolutely need the money, you can make some decisions about the best way to use it." Here are four key questions that can help you come up with an MRD strategy. 1. Do you need the money to cover living expenses? If you re planning to spend your MRDs, one big consideration is managing your cash flow, explains Hevert. You may want to consider arranging to have payments sent directly to a cash management account that provides flexible access to the money with features such as checkwriting, ATM use, and online bill payment. Arranging to have the money automatically distributed to a cash management or taxable brokerage account also helps to ensure that your MRD requirement will be met by the deadline of December 31 each year, avoiding an IRS penalty on distributions made after the deadline. When planning your budget, bear in mind that you ll generally owe income tax on any MRDs and other distributions from traditional retirement accounts. You can have taxes automatically withheld from your MRDs. If you choose not to do this, make sure you set money aside for tax time. There are a few different automatic withdrawal methods that you may want to consider to help you satisfy your MRD requirement:
2 IRS recalculation method: This is the required method of calculating your MRD according to IRS rules. It generally requires annual distributions 1 from your account based on your life expectancy, and is recalculated each year. Purchasing an annuity: The purchase of an annuity can help turn your IRA assets into a stream of income payments, guaranteed for life. 2,3 (Important note: This method does not guarantee that you will comply with the IRS MRD regulations or meet your MRD obligations. Only the amount of money being annuitized will be counted as your MRD.) This guarantees a set payment option for retirement income, regardless of your life expectancy, 4 and helps reduce your risk of a budget shortfall. In addition, it provides more income beyond life expectancy than other options. 5 There are two options to consider when deciding whether the purchase of an annuity may be right for you and your retirement income plan: o Fixed payment option: Lifetime payments remain level, and access to additional principal withdrawals is limited. o Variable payment option: Lifetime payments vary over time, based on performance of the underlying investments you choose. In some cases, additional withdrawals after purchase may be allowed Do you plan to reinvest the money? If so, you may want to consider having any MRDs routed to one of your nonretirement accounts, where you can invest the money according to your goals, time horizon, risk tolerance, and financial circumstances. If you invest your MRD in a taxable account, you may want to consider owning tax-efficient securities to help minimize your tax liability: Municipal bonds and municipal bond funds pay income that is free from federal income tax and, in some cases, from state and local taxes (note that income from some municipal bonds and mutual funds is subject to the federal alternative minimum tax). Stocks you intend to hold longer than a year that may pay qualified dividends. Sales of appreciated stocks held more than a year are taxed at lower long-term capital gains rates. Just be sure any dividends the stock pays are qualified. Qualified dividends are taxed at the same low rates as long-term capital gains, but nonqualified ordinary dividends, such as those paid by many real estate investment trusts (REITs), are taxed at ordinary income rates. Equity exchange-traded funds (ETFs). The unique structure of many ETFs investing in equities may help investors by allowing them to delay realizing taxable capital gains. Tax-managed and other tax-efficient equity mutual funds, such as index funds, trade infrequently and may use other techniques that seek to minimize a shareholder's tax liability. Finally, another option for investors with a time horizon of 10 or more years is a lowcost, tax-deferred variable annuity, which allows potential earnings to grow tax deferred until withdrawn.
3 Meanwhile, you may want to consider investing the existing assets in your IRA or other retirement plan in investments that are not, or are less, tax efficient, such as taxable bond funds, REITs, or short-term stock holdings. Whether you invest the money for your own purposes or for someone else's education, be sure to allocate the money according to investing fundamentals. Say you want to use the assets to help pay for college costs for a family member or friend. In this case, you can arrange for your MRDs to be deposited directly into a 529 college savings plan, although this will not avoid the tax due on the MRD. A 529 college saving plan helps to shield any future earnings from annual taxes, and withdrawals are tax free as long as they're used for qualified higher-education expenses. "Know what the purpose of the money is, how long until you'll need it, and how much risk you're willing to take and invest accordingly," says Hevert. 3. Do you plan to pass assets on to your heirs? If so, you may want to consider converting IRA assets to a Roth IRA. Investors of all income levels are permitted to convert traditional IRAs and 401(k) plans from previous employers to Roth IRAs. When drawing up a will, you may want to consider your current tax rate applied to converted IRA assets versus the tax rate your heirs would pay on inherited assets. If your heirs will be in a higher tax bracket than your own, then it may make sense to convert. The Roth IRA's absence of minimum required distributions during the lifetime of the original owner means you can leave the assets in place for as long as you live, with the potential to generate tax-sheltered growth. Your heirs will have to withdraw a minimum required distribution each year after they inherit the account, but they generally won't be taxed on those distributions, which potentially increases the value of your bequest. If you are age 70½ or older, you will have to take out any MRD amount first before you convert the remaining assets in your IRA to a Roth IRA. Note: While Roth IRAs are generally not subject to income tax, they are still subject to estate tax, so it is important to plan accordingly. When you convert an IRA, you'll have to compute the income tax on the portion of the account assets converted. Ordinarily, the entire amount converted becomes taxable income, but if you've made nondeductible contributions to any IRA, the percentage of your total IRA assets composed of investment earnings and tax-deductible contributions is determined and applied to the converted assets. When the employer plan assets are converted, the taxable portion of the conversion is determined separately from all IRA assets and from any other employer plans.
4 There are a number of factors to consider before converting to a Roth IRA. A conversion generally may make sense if you can pay the tax out of other savings, rather than tapping into the assets in the account you want to convert. Another option to consider when your goal is to pass assets on to your heirs is a "dividends and interest only" strategy for spending down assets in retirement. In this case, you would invest in interest-paying bonds and dividend-paying stocks in your IRA. In some cases, the interest and dividends generated within the account may be enough to cover your MRDs, and allow you to preserve most of, if not all, the principal in your account. This method does not guarantee that you will comply with IRS MRD rules. 4. Do you want to make charitable donations now? If so, a strategy involving a Roth IRA conversion and charitable contributions may advance your philanthropic goals while potentially enhancing your retirement account's flexibility and tax sensitivity. The strategy involves performing a Roth IRA conversion, then making a charitable contribution in the same amount as the conversion. In general, the goal is for your donation to help reduce your taxable income by the same amount that the conversion increases it, leaving you with little or no tax impact. You could also put the charitable contribution into a donor-advised fund and distribute the money to charities over time. For example, say you plan to convert a traditional IRA to a Roth IRA, and $100,000 of the assets in the account will be taxed. Making a deductible charitable donation from a taxable account worth $100,000 would generally offset the converted assets, leaving you with little or no additional liability. The upshot? Your account would be converted to a Roth IRA eliminating MRDs during your lifetime and providing tax-free potential growth 7 at little or no cost and you'd advance your philanthropic objectives. Note: There are IRS limits to deductible charitable donations. Generally the limit is 50% of AGI if cash is used and 30% if appreciated securities are used. "This move is driven by the desire to convert to a Roth IRA," cautions Hevert. "If you don't have a need for a conversion, you may be better off not converting and simply making a charitable donation." Generally, anyone who is over age 75 and has large charitable intentions may not want to convert to a Roth IRA unless he or she is in extremely good health. Typically, the most taxefficient asset to leave to charity at death is a traditional IRA, because the charity does not pay income tax, and the charitable bequest is excluded from an investor's taxable estate. While there are exceptions, the majority of older taxpayers with substantial charitable intentions will fall under this rule.
5 Whichever scenario applies to you, MRDs are likely to play an important role in your finances in retirement. Building a thoughtful retirement income plan can help you use MRDs in the most effective ways and help you reach your important financial goals. At the very least, it's important to spend some time understanding MRDs and your options, to help avoid a costly mistake. Next steps You can enroll in automatic withdrawals to manage your MRDs from your Fidelity retirement accounts each year. This service will calculate your MRD each year and distribute that amount based on your instructions. You can set up automatic withdrawals (login required) for your Fidelity IRAs, to satisfy your MRDs. You can also view your MRD amount and track how much you have taken during the year by looking on the Fidelity.com "Account History" page for each retirement account. Look on the right-hand side of the screen for each account. The MRD Tracker (login required) shows the estimated MRD amount and how it was calculated, the year-to-date distributions taken from that account, and whether the account is enrolled in an automatic withdrawal plan. Content Source Link:
Tax-Efficient Investing
Tax-Efficient Investing Creating a plan to help manage, defer, and reduce taxes Taking control: Developing an ongoing tax strategy As you save and invest for retirement, there are key disciplines that
More informationPreserving and Transferring IRA Assets
Preserving and Transferring IRA Assets september 2017 The focus on retirement accounts is shifting. Yes, it s still important to make regular contributions to take advantage of tax-deferred growth potential,
More informationRollovers from Employer-Sponsored Retirement Plans
Law Office Of Keith R. Miles, LLC Keith Miles Attorney-at-Law 2250 Oak Road PO Box 430 Snellville, GA 30078 678-666-0618 keithmiles@timetoestateplan.com www.timetoestateplan.com Rollovers from Employer-Sponsored
More informationYear-End Planning 2017
Wealth Management Year-End Planning Executive Summary As we approach the end of, it is time to review traditional year-end planning decisions. We are aware of the significant changes in the tax code currently
More informationUnderstanding your. What it is, when to take it, and what to do with it.
Understanding your Required Minimum Distribution What it is, when to take it, and what to do with it. MAKE YOUR RMDs STRESS-FREE Once you reach age 70½, the IRS requires you to take money out of your retirement
More informationArthur Lander C.P.A., P.C. A professional corporation
A Arthur Lander C.P.A., P.C. A professional corporation 300 N. Washington St. #104 Alexandria, Virginia 22314 phone: (703) 486-0700 fax: (703) 527-7207 YEAR-END TAX PLANNING FOR INDIVIDUALS Once again,
More informationWhat You Need To Know When It Is Time To Start Distributions From Your Retirement Accounts
Retirement Planning Required Minimum Distributions What You Need To Know When It Is Time To Start Distributions From Your Retirement Accounts WHAT ARE REQUIRED MINIMUM DISTRIBUTIONS? Required minimum distributions
More informationLearn about tax-efficient investing. Investor education
Learn about tax-efficient investing Investor education Be a tax-conscious investor Of all the expenses investors pay, taxes have the potential for taking the biggest bite out of their total returns. That
More informationRequired Minimum Distributions
Required Minimum Distributions What You Need To Know When It Is Time To Start Distributions From Your Retirement Accounts What Are Required Minimum Distributions? Required minimum distributions (RMDs)
More informationConverting or Rolling Over Traditional IRAs to Roth IRAs
LPL Financial Sims & Karr Financial Solutions Roger C. Sims Jason R Karr, Alex M. Means 304 North Main Street Greer, SC 29650 864-879-0337 simsandkarr@lpl.com www.simskarr.com Converting or Rolling Over
More informationConverting or Rolling Over Traditional IRAs to Roth IRAs
LPL Financial Sims & Karr Financial Solutions Roger C. Sims Jason R Karr, Alex M. Means 304 North Main Street Greer, SC 29650 864-879-0337 simsandkarr@lpl.com www.simskarr.com Converting or Rolling Over
More informationYour Guide to EFFECTIVE GIVING After Tax Reform
Your Guide to EFFECTIVE GIVING After Tax Reform In December 2017 Congress enacted the most comprehensive tax law changes in more than 30 years. The goal of the legislation was to reduce taxes while simplifying
More informationTraditional IRA/Roth IRA
PREMIERE SELECT Traditional IRA/Roth IRA Invest in your retirement today. Saving for your retirement is important in any market. If you re planning for your future, an IRA can offer you more choices than
More informationRetirement Income: 401(k) and Other Employer-Sponsored Retirement Plans
Nicholson Financial Services, Inc. David S. Nicholson Financial Advisor 89 Access Road Ste. C Norwood, MA 02062 781-255-1101 866-668-1101 david@nicholsonfs.com www.nicholsonfs.com Retirement Income: 401(k)
More informationConverting or Rolling Over Traditional IRAs to Roth IRAs
Brian Krawiec, CFP, ChFC, CLU CERTIFIED FINANCIAL PLANNER 4061 Powder Mill Road Suite 705 Calverton, MD 20705 301-595-8600 brian.krawiec@raymondjames.com www.potomacfinancialgroup.com Converting or Rolling
More informationPreserving and Transferring IRA Assets
january 2014 Preserving and Transferring IRA Assets Summary The focus on retirement accounts is shifting. Yes, it s still important to make regular contributions to take advantage of tax-deferred growth
More informationRETIREMENT STRATEGIES. Understanding Required Minimum Distributions
RETIREMENT STRATEGIES Understanding Required Minimum Distributions We can help We have developed this guide to help you avoid common and costly mistakes, provide valuable retirement planning information,
More informationLearn about tax-efficient investing. Investor education
Learn about tax-efficient investing Investor education Be a tax-conscious investor Of all the expenses investors pay, taxes have the potential for taking the biggest bite out of their total returns. That
More informationYour Fidelity Health Savings Account. Information to help make the most of your new health savings account
Your Fidelity Health Savings Account Information to help make the most of your new health savings account Your Fidelity HSA The health savings approach that makes sense for today. And for tomorrow. Congratulations
More informationIRAs. Your Retirement Advisor
Your Retirement Advisor 508-798-5115 lynnt@yourretirementadvisor.com www.yourretirementadvisor.com IRAs March, 2017 Page 1 of 8, see disclaimer on final page Both traditional and Roth IRAs feature tax-sheltered
More informationYOUR GUIDE TO IDENTIFYING YOUR TAX RETURN OPPORTUNITIES
YOUR GUIDE TO IDENTIFYING YOUR TAX RETURN OPPORTUNITIES 2 At Transamerica, we re committed to providing you with the tools and information you need to make the right financial decisions. IRS Form 1040
More informationMilitary Benefit Association Roth IRA Conversions. 11/4/2015 Page 1 of 12, see disclaimer on final page
Military Benefit Association mba@militarybenefit.org Roth IRA Conversions 11/4/2015 Page 1 of 12, see disclaimer on final page Roth Conversions: Easier after 2009 What changed? Before 2010 you could only
More informationFinancial Advisor. Understanding IRAs. January 15, 2019 Page 1 of 5, see disclaimer on final page
Financial Advisor Understanding IRAs Page 1 of 5, see disclaimer on final page Understanding IRAs An individual retirement arrangement (IRA) is a personal savings plan that offers specific tax benefits.
More informationYour Fidelity Health Savings Account. Information to help make the most of your new health savings account
Your Fidelity Health Savings Account Information to help make the most of your new health savings account Your Fidelity HSA The health savings approach that makes sense for today. And for tomorrow. Congratulations
More informationYour Fidelity Health Savings Account. Information to help make the most of your new health savings account
Your Fidelity Health Savings Account Information to help make the most of your new health savings account Your Fidelity HSA The health savings approach that makes sense for today. And for tomorrow. Congratulations
More information2018 Year-End Tax Planning for Individuals
2018 Year-End Tax Planning for Individuals There is still time to reduce your 2018 tax bill and plan ahead for 2019 if you act soon. This letter highlights several potential tax-saving opportunities for
More informationKey Provisions in the Pension Protection Act of 2006
Key Provisions in the Pension Protection Act of 2006 H.R.4, the Pension Protection Act of 2006 (the Act ), was signed into law on August 17, 2006. Among other changes, this massive 800-plus-page law overhauls
More informationP A R N A S S U S F U N D S
PARNASSUS FUNDS P A R N A S S U S F U N D S Useful information about IRAs What is a Traditional IRA? A traditional IRA is an Individual Retirement Account that allows you to put away money for your retirement
More informationRetirement Income: IRAs
Nicholson Financial Services, Inc. David S. Nicholson Financial Advisor 89 Access Road Ste. C Norwood, MA 02062 781-255-1101 866-668-1101 david@nicholsonfs.com www.nicholsonfs.com Retirement Income: IRAs
More informationReceiving Required Minimum Distributions. Making it simple with TIAA
Receiving Required Minimum Distributions Making it simple with TIAA Required Minimum Distributions what you need to know What are Required Minimum Distributions? 1 How can you receive minimum distributions
More informationTraditional and Roth IRAs. Information Kit, Disclosure Statement and Custodial Agreement
Traditional and Roth IRAs Information Kit, Disclosure Statement and Custodial Agreement UMB Bank, n.a. Universal Individual Retirement Account Disclosure Statement (EFFECTIVE DECEMBER 1, 2016) Part One:
More informationJanus Universal IRA. Disclosure Statement & Custodial Agreement
Janus Universal IRA Disclosure Statement & Custodial Agreement Janus Universal Individual Retirement Account Disclosure Statement Part One: Description of Traditional IRAs SPECIAL NOTE State Street Bank
More informationRoth IRA 2018 YOUR PARTNERS IN BUILDING WEALTH AND SECURITY
1 Roth IRA 2018 YOUR PARTNERS IN BUILDING WEALTH AND SECURITY 111.1111 2 Roth IRA A Roth Individual Retirement Account (IRA) can help you save for retirement by offering tax-free earnings accumulation
More informationUNDERSTANDING REQUIRED MINIMUM DISTRIBUTIONS
MAKING ADVISED CHOICES RETIREMENT UNDERSTANDING REQUIRED MINIMUM DISTRIBUTIONS PRUDENTIAL CAN HELP Prudential has developed this guide to help you avoid common and costly mistakes, provide valuable retirement
More informationHelping You Avoid IRA Distribution Mistakes
Helping You Avoid IRA Distribution Mistakes Provided to you by: Yvette Scanlon President & Financial Advisor 888-551-2133 Helping You Avoid IRA Distribution Mistakes Written by Financial Educators Provided
More informationBeneficiary Designations for Roth IRAs
Weller Group LLC Timothy Weller, CFP CERTIFIED FINANCIAL PLANNER 6206 Slocum Road Ontario, NY 14519 315-524-8000 tim@wellergroupllc.com www.wellergroupllc.com Beneficiary Designations for Roth IRAs Page
More informationInvestment Tax Planning
Select Portfolio Management, Inc. David M. Jones, MBA Wealth Advisor 120 Vantis, Suite 430 Aliso Viejo, CA 92656 949-975-7900 dave.jones@selectportfolio.com www.selectportfolio.com Investment Tax Planning
More informationLiving in Retirement Guide
Living in Retirement Guide With the right ongoing planning, living in retirement can be a comfortable time of financial independence. 1-866-951-9511 regions.com Expect more in your retirement Your working
More informationIndividual Retirement Account (IRA) Information Kit
Individual Retirement Account (IRA) Information Kit (Effective January 1, 2018) Pear Tree Funds 55 Old Bedford Road Suite 202 Lincoln, MA 01773 1-800-326-2151 PEAR TREE FUNDS Individual Retirement Account
More informationGift Planning 101. ALADN Conference June 6, 2016 Mike Mattson
Gift Planning 101 ALADN Conference June 6, 2016 Mike Mattson Gift planning officer What is a planned gift? o A planned gift is any gift that combines conscientious decisions about how much to give, to
More informationDocumeent title on one or two. during the 2013 IRA season
Documeent title on one or two Tax lines savings Gustan opportunities Book 24pt during the 2013 IRA season The IRA season, from January 1 through April 15, may offer you opportunities to cut taxes and enhance
More informationPreserving and Transferring IRA Assets
AUGUST 2016 Preserving and Transferring IRA Assets SUMMARY The focus on retirement accounts is shifting. Yes, it s still important to make regular contributions to take advantage of tax-deferred growth
More informationRetirement and Savings Plan Payment Rights Notice
Retirement and Savings Plan Payment Rights Notice Federal law requires that you receive information about any rights that you may have associated with a payment from the Cummins RSP. Please review the
More informationUMB Bank, n.a. Universal IRA Information Kit
UMB Bank, n.a. Universal IRA Information Kit INTRODUCTION: What is the Difference between a Traditional IRA and a Roth IRA? With a traditional IRA, an individual may be able to deduct the contribution
More informationCaution: Special rules apply to certain distributions to reservists and national guardsmen called to active duty after September 11, 2001.
LPL Financial Sims & Karr Financial Solutions Roger C. Sims Jason R Karr, Alex M. Means 304 North Main Street Greer, SC 29650 864-879-0337 simsandkarr@lpl.com www.simskarr.com Roth IRAs Page 1 of 13, see
More informationLaw Office Of Keith R. Miles, LLC July 28, 2015
Law Office Of Keith R. Miles, LLC Keith Miles Attorney-at-Law 2250 Oak Road PO Box 430 Snellville, GA 30078 678-666-0618 keithmiles@timetoestateplan.com www.timetoestateplan.com Traditional IRAs Page 1
More informationFundamentals of Retirement Income Planning
Fundamentals of Retirement Income Planning 1 How will you know you re ready to retire? A simple question without a simple answer 2 Understand how a retirement income plan can help you Decide when you can
More informationFundamentals of Retirement Income Planning
Fundamentals of Retirement Income Planning 1 How will you know you re ready to retire? A simple question without a simple answer 2 1 Understand how a retirement income plan can help you Decide when you
More informationIndividual Retirement Accounts Roth & Traditional. IRAs Guidebook
Individual Retirement Accounts Roth & Traditional IRAs Guidebook 2016 IRA Roth & Traditional Individual Retirement Accounts At-a-Glance Eligibility Contents IRAs At-a-Glance... 1 Roth IRA... 2... 3 Roth
More informationConverting or Rolling Over Traditional IRAs to Roth IRAs
Cole FInancial Consulting Jennifer J. Cole, CFA, MBA P.O. Box 1109 Sandia Park, NM 505-286-7915 JCole@ColeFinancialConsulting.com ColeFinancialConsulting.com Converting or Rolling Over Traditional IRAs
More informationT. Rowe Price Traditional and Roth IRA Disclosure Statement and Custodial Agreement T. Rowe Price Privacy Policy
T. Rowe Price Traditional and Roth IRA Disclosure Statement and Custodial Agreement T. Rowe Price Privacy Policy March 2018 TABLE OF CONTENTS DISCLOSURE STATEMENT Introduction 3 Section I Revocation 3
More informationT. Rowe Price Traditional and Roth IRA Disclosure Statement and Custodial Agreement T. Rowe Price Privacy Policy
T. Rowe Price Traditional and Roth IRA Disclosure Statement and Custodial Agreement T. Rowe Price Privacy Policy Effective November 2016 TABLE OF CONTENTS DISCLOSURE STATEMENT Introduction 3 Section I
More informationA GUIDE TO YOUR OPTIONS WHEN SEPARATING FROM SERVICE, INCLUDING THE SPECIAL TAX NOTICE
Distribution Options Guide A GUIDE TO YOUR OPTIONS WHEN SEPARATING FROM SERVICE, INCLUDING THE SPECIAL TAX NOTICE. www.modeferredcomp.org 800-392-0925 DISTRIBUTION OPTIONS WHEN SEPARATING FROM SERVICE
More informationUMB Bank, n.a. Universal Individual Retirement Account Disclosure Statement
UMB Bank, n.a. Universal Individual Retirement Account Disclosure Statement PART ONE:DESCRIPTION OF TRADITIONAL IRAs Part One of the Disclosure Statement describes the rules applicable to traditional IRAs.
More informationSelect Portfolio Management, Inc May 20, 2016
Select Portfolio Management, Inc 26800 Aliso Viejo Parkway Suite 150 Aliso Viejo, CA 92656 949-975-7900 800-445-9822 info@selectportfolio.com www.selectportfolio.com Understanding IRAs Page 1 of 5, see
More informationINSIDE THIS ISSUE. When Is It a Good Time to Sell Investments (p. 1)
INSIDE THIS ISSUE When Is It a Good Time to Sell Investments (p. 1) Required Minimum Distribution A Primer (p. 4) Equalize Inheritances with Life Insurance (p. 6) Municipals Under the Microscope (p. 7)
More informationMFS Retirement Strategies Stretch IRA and distribution options READY, SET, RETIRE. Taking income distributions during retirement
MFS Retirement Strategies Stretch IRA and distribution options READY, SET, RETIRE Taking income distributions during retirement ASSESS YOUR NEEDS INCOME WHEN YOU NEED IT Choosing the right income distribution
More informationConverting or Rolling Over Traditional IRAs to Roth IRAs
Cole FInancial Consulting Jennifer J. Cole, CFA, MBA P.O. Box 1109 Sandia Park, NM 505-286-7915 JCole@ColeFinancialConsulting.com ColeFinancialConsulting.com Converting or Rolling Over Traditional IRAs
More informationHow Roth IRA Withdrawals Are Taxed
How Roth IRA Withdrawals Are Taxed You may think that all withdrawals from Roth IRAs are federal-income-tax-free. Unfortunately, that's not true. Some withdrawals are taxable. On top of that, withdrawals
More information29. Retirement 4: Understanding Individual and Small-Business Plans
29. Retirement 4: Understanding Individual and Small-Business Plans Introduction Whether you work for a large or a small company or are self-employed, you need to plan for retirement. This chapter will
More informationTax-cutting time is ticking away. Review options for accelerating income. Dear Clients and Friends,
Dear Clients and Friends, Taxes are going to be a major issue for the rest of 2012 and for much of 2013. On January 1, 2013, the country faces what Federal Reserve Chairman Ben Bernanke has called a fiscal
More informationTHE CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN (ESIP)
THE CHEVRON EMPLOYEE SAVINGS INVESTMENT PLAN (ESIP) Taking a Company Stock Distribution This brochure describes the distribution options for your Chevron company stock and explains some of the tax consequences
More informationPayment Rights Notice - CSRA 401(k)
Your Benefits Resources www.resources.hewitt.com/csra CSRA Benefits Center 1-844-335-9041 between 8:00 a.m. and 8:00 p.m., Eastern time, Monday through Friday Payment Rights Notice - CSRA 401(k) Federal
More informationSavings Banks Employees Retirement Association 401(k) PLAN APPLICATION FOR WITHDRAWAL OF AFTER TAX/VEC CONTRIBUTIONS AND EARNINGS
Savings Banks Employees Retirement Association 401(k) PLAN APPLICATION FOR WITHDRAWAL OF AFTER TAX/VEC CONTRIBUTIONS AND EARNINGS Participant Name: (Please Print) Certificate No. Current Address (required)
More informationUMB BANK, N.A INFORMATION KIT
UMB BANK, N.A UNIVERSAL INDIVIDUAL RETIREMENT ACCOUNT INFORMATION KIT (EFFECTIVE DECEMBER 1, 2016) 600 University Street, Suite 2412 Seattle, WA 98101 Main: 206.838.9850 Toll Free: 877.701.2883 Fax: 206.838.9851
More informationYEAR-END TAX PLANNING OPPORTUNITIES
YEAR-END TAX PLANNING OPPORTUNITIES These important tax and financial planning moves can help prepare you for the upcoming tax season and better align your portfolio with your short- and long-term goals.
More informationTax-Savvy Roth IRA Conversions
Tax-Savvy Roth IRA Conversions Posted: 12/4/2014 by Fidelity Viewpoints Before you convert your traditional IRA to a Roth IRA, consider two taxsavvy strategies. The benefits of a Roth IRA are clear the
More informationPayment Rights Notice - Savings Plan
Updated January 2018 Your Benefits Resources http://www.yourbenefitsresources.com/ppg Payment Rights Notice - Savings Plan Federal law requires that you receive information about any rights that you may
More informationLearn how a Putnam IRA can help you save for retirement. Traditional and Roth
Learn how a Putnam IRA can help you save for retirement Traditional and Roth How will you use your IRA savings? A recent study surveyed Traditional IRA owners about how they have used withdrawals. Living
More informationDistributions Options Guide
Distributions Options Guide A Guide to Your Options When Separating from Service Including the Special Tax Notice Retirement Savings, Simplified Your Distribution Options Upon separation of service and
More information2017 Year-End Tax Planning
2017 Year-End Tax Planning If you've been following the news out of Washington, you probably know that for the first time in decades, tax reform is a real possibility. Given that both the House and the
More informationWhat s Inside. March Puny Payouts. Deducting Charitable Gifts. 3 Tax-Efficient IRA Withdrawals. 6 Cybersecurity for Business Owners
Certified Public Accountants Management Consultants 1455 Research Blvd, Suite 510, Rockville, Maryland 20850 Phone: 301-762-7755, Fax 301-762-4688 E-mail: admin@rosenbloomcpa.com Web: www.rosenbloomcpas.com
More informationPayment Rights Notice - Rite Aid 401(k) Plan
Your Retirement Resources www.ybr.com/riteaid Customer Service Center 1-855-594-6214 between 9 a.m. and 6 p.m., Eastern time, Monday through Friday Payment Rights Notice - Rite Aid 401(k) Plan Federal
More informationDialogues Year-End Tax Planning Guide WEALTH STRATEGIES FOR DISCUSSION
Dialogues WEALTH STRATEGIES FOR DISCUSSION We can work with you and your tax professional to help you decide which year-end tax strategies may be beneficial to you. FOURTH QUARTER 2010 COURTESY OF THE
More informationWELCOME TO YOUR 401(k) PLAN SAVINGS GUIDE
WELCOME TO YOUR 401(k) PLAN SAVINGS GUIDE Help make the most of your retirement savings by taking advantage of the features in the TVA Savings and Deferral Retirement Plan (401(k) Plan), including the
More informationPNC CENTER FOR FINANCIAL INSIGHT
PNC CENTER FOR FINANCIAL INSIGHT Six Year-End Tax and Financial Planning Ideas A Focus on How Sweeping Changes are Affecting Planning. Now is the time to make sure you are taking full advantage of the
More informationYOUR ROLLOVER OPTIONS
For Payments From a Designated Roth Account YOUR ROLLOVER OPTIONS You are receiving this notice in the event that all or a portion of a payment you are receiving from the Plan is eligible to be rolled
More informationCharitable Giving: Tax Benefits and Strategies
Charitable Giving: Tax Benefits and Strategies CPAs Attorneys Enrolled Agents Tax Professionals Professional Education Network TM Contents 1 Introduction 2 Overview of Tax Benefits 3 Tax Treatment of Gifts
More informationIRAs. Qualified Charitable Distribution. Questions & Answers
IRAs Qualified Charitable Distribution Questions & Answers Purpose The purpose of this brochure is to explain the permanent adoption of the charitable contribution federal income tax law which will benefit
More informationUnderstanding the taxability of investments
Understanding the taxability of investments Managing your portfolio to help control your tax bill Investors need to consider many factors in the process of choosing investments. One at the top of many
More informationFrequently asked questions pertaining to Roth 401(k) contributions, after-tax contributions and the Roth in-plan conversion feature
Frequently asked questions pertaining to Roth 401(k) contributions, after-tax contributions and the Roth in-plan conversion feature Is a Roth 401(k) in-plan conversion right for you? The following frequently
More informationHow It Works. Additional Considerations
The basics: The employer contributes a defined or fixed percentage of the participating employee s compensation each year. The amount to which the fund grows is the amount the employee receives at retirement.
More informationRoth IRA Conversions
educational Series Roth IRA Conversions Executive Summary Until now, high-income earners have been effectively prevented from using Roth IRAs. Beginning in 2010, the income limits for Roth conversions
More informationIt s decision time. Determine the future of your Nationwide annuity and Capital Preservation Plus Lifetime Income
It s decision time. Determine the future of your Nationwide annuity and Capital Preservation Plus Lifetime Income Years ago, you and your investment professional made the decision to purchase a Nationwide
More informationThe IRA opportunity: To Roth or not to Roth?
The IRA opportunity: To Roth or not to Roth? Vanguard research July 2011 Executive summary. The year 2010, which may well go down in IRA history as the year of the Roth, saw three notable legislative changes
More informationSavings Banks Employees Retirement Association
Savings Banks Employees Retirement Association 401(k) PLAN APPLICATION FOR WITHDRAWAL AT AGE 59 1/2 Participant Name: (Please Print) Certificate No. Current Address (required) (Street) (City, State Zip)
More informationAdded choice under your 457(b) plan.
3019053.G.P-2 12/19/11 12:06 PM Page T01 Added choice under your 457(b) plan. Roth 457: A unique opportunity for tax-free* retirement income. *Qualifying conditions apply. Your future. Made easier. 3019053.G.P-2
More informationRollover IRAs. Consider the advantages of consolidating your retirement savings PROOF 3
Rollover IRAs Consider the advantages of consolidating your retirement savings O O R P 3 F Consider the Advantages of Consolidating Your Retirement Savings If you have changed jobs, left the workforce
More informationUnderstanding Required Minimum Distributions for Individual Retirement Accounts
Understanding Required Minimum Distributions for Individual Retirement Accounts What are required minimum distributions (RMDs)? Required minimum distributions, often referred to as RMDs or minimum required
More informationFrequently asked questions
Page 1 of 6 Frequently asked questions Distributions and rollovers from retirement accounts Choosing what to do with your retirement savings is an important decision. Tax implications are just one of several
More informationImportant Tax Information About Your TSP Withdrawal and Required Minimum Distributions
Important Tax Information About Your TSP Withdrawal and Required Minimum Distributions The Thrift Savings Plan (TSP) is required by law to provide you with this notice. However, because the tax rules covered
More informationTax Strategies. Tax-Smart Planning for Every Stage of Life
Tax-Smart Planning for Every Stage of Life General Disclaimer This discussion is based on our understanding of the tax law as it exists as of (date). The information contained in this document is not intended
More informationCharitable Giving Techniques
Charitable Giving Techniques Helping achieve your charitable and estate-planning goals Trust Tip A trust can be thought of as having two parts an income interest and a remainder interest. The income interest
More informationJOURNEY. Planning for Financial Security SAVING : INVESTING : PLANNING
JOURNEY Planning for Financial Security SAVING : INVESTING : PLANNING Agenda 1 Cash management 2 Investment planning 3 Tax planning 4 Risk management 5 Retirement planning 6 Estate planning SAVING : INVESTING
More informationHelpful Information for Filing 2018 Income Taxes and Proactive Tax Planning for 2019
Helpful Information for Filing 2018 Income Taxes and Proactive Tax Planning for 2019 Tax planning should always be a key focus when reviewing your personal financial situation. One of our goals as financial
More informationTax strategies for higher-income taxpayers
Tax strategies for higher-income taxpayers This overview summarizes some of the key areas that you and your tax advisor should assess. Your Financial Advisor can assist in evaluating investment decisions
More informationIndividual Retirement Account (IRA) Information Kit
Individual Retirement Account (IRA) Information Kit (Effective January 1, 2013) Pear Tree Funds 55 Old Bedford Road Suite 202 Lincoln, MA 01773 1-800-326-2151 1117-03-0713 PEAR TREE FUNDS Individual Retirement
More informationRoth 403(b) option offers the potential for tax-free retirement income
Roth 403(b) option offers the potential for tax-free retirement income About the Roth 403(b) option: Your plan now gives you the option of contributing to a Roth 403(b) through your retirement savings
More informationMultigenerational Retirement Distribution Planning. Maximizing the Family Wealth Planning Benefits of Qualified Plans and IRAs
Multigenerational Retirement Distribution Planning Maximizing the Family Wealth Planning Benefits of Qualified Plans and IRAs Overview Qualified plans, IRAs and other tax-deferred plans often constitute
More informationSavings Banks Employees Retirement Association
Savings Banks Employees Retirement Association IN-PLAN ROTH CONVERSION ELECTION FORM PLEASE NOTE: Your Plan must allow In-Plan Roth Rollovers Participant Name: (Please Print) Certificate No. Current Address
More information