Beneficiary designations are something people often forget about when preparing for retirement. That can be a very costly mistake. This post offers 7 things you need to know. The bottom line: IRA beneficiaries matter - A LOT! In my financial planning practice, Leamnson Capital, I often review retirement account (IRAs, 401(k)s, etc.) beneficiary designations for the people I … [Read more...] about Naming IRA Beneficiaries – 7 Things You Need to Know
IRAs
IRS Updates Roth Recharacterization Rule
Roth Recharacterization rule Recently, I read the following announcement: IRS updates Roth recharacterization rule. In December, I wrote a post (link below) about a significant change to the rules for recharacterizing Roth IRAs conversions. The change basically took away the option. After researching the IRS update (and since I wrote about it), I wanted to bring … [Read more...] about IRS Updates Roth Recharacterization Rule
Three Reasons to Consider a Roth IRA Conversion
In this post, I'll cover my top three reasons to convert to a Roth IRA. Prior to the Tax Cuts and Jobs Act, recharacterization offered you the ability to undo the Roth conversion, making it like it never happened, The tax law eliminated that option. This has caused many to reconsider whether converting to a Roth IRA makes sense. However, if you make too much money to … [Read more...] about Three Reasons to Consider a Roth IRA Conversion
Which Should You Own – a Roth IRA or Traditional IRA?
Do you own an IRA? Are you thinking about it? If so, which should you own - a Roth IRA or Traditional IRA? The answer for you may be both. There are benefits to each that we will explore in this post. This post will not include a discussion about investments in your IRA. I'll save that for another day., We will discuss in some detail how each IRA works. What are the … [Read more...] about Which Should You Own – a Roth IRA or Traditional IRA?
Rules and Deadlines for Required Minimum Distributions (RMDs)
Since the penalties for not getting required minimum distributions (RMDs) right or severe, I thought it would be a good time to review the rules and deadlines to help you get it right. RMD rules are complicated and making mistakes by not following them are costly. If you miss taking an RMD or take out less than what is required, you will pay a 50% penalty. Yes, you read that … [Read more...] about Rules and Deadlines for Required Minimum Distributions (RMDs)
IRS Brings Major Change to Roth IRAs with New Tax Law
If you own or are thinking about starting a Roth IRA, you need to know that a major change is coming to Roth IRAs. Both the House and Senate proposals include this change. Let me start by saying that I am a raving fan of Roth IRAs. They have many advantages over traditional IRAs. If you have traditional IRAs or company retirement plans, once you reach age 70 1/2, the IRS … [Read more...] about IRS Brings Major Change to Roth IRAs with New Tax Law