Your beneficiary designation matters - A LOT! Naming IRA beneficiaries is not something to take lightly. A beneficiary designation is 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. One of the things I review in my financial advisory practice is retirement account (IRAs, … [Read more...] about 7 Things You Need to Know about Your IRA Beneficiary Designation
Do you own an IRA? Are you considering it? If so, which should you hold - 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 advantages … [Read more...] about Traditional vs. Roth IRA – Which Should You Own? (2019)
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 My Top Three Reasons to Do a Roth IRA Conversion
As we near the end of the year, I thought it would be a good idea to review the benefits of a backdoor Roth IRA. Many people have incomes too high to allow them to contribute to a traditional IRA with pre-tax money. Though income limits are higher for Roth IRA contributions, there is still a limit. The backdoor Roth IRA is a way to get around the income limits imposed by the … [Read more...] about Is the Backdoor Roth IRA Right for You?
There is a lot of confusion about what you can do with inherited IRAs. In today's post, I'll tell you what you need to know about inherited IRAs to make good decisions about them. There are required minimum distributions to consider. You also need to understand how to name your beneficiaries. There are special rules and exceptions for spouses, and many other things to … [Read more...] about What You Need to Know about Inherited IRAs
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
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