By: Greg Reese, President & CEO, AmeriEstate Legal Plan, Inc. The Setting Every Community Up for Retirement Enhancement Act, better known as the SECURE Act, was signed into law on Friday, December 20, 2019 and became effective as of January 1, 2020. For purposes of this article, traditional IRAs and employer tax deferred accounts such as 401(k)s, 403(b)s, and 457s will all be referred … [Read more...] about The Secure Act – 2020 New Law Affecting Qualified Plans Payable to a Trust
While you're considering health care benefits options during your "open enrollment" period, you should also take stock of your retirement savings strategy. Are you saving enough to cover your retirement needs? The answer depends on many factors, including your expected living expenses, bucket list items (such as travel and hobbies) and potential medical and long-term care costs. Also be … [Read more...] about Take Time to Review Your Retirement Savings Strategy
Good things come to those who wait. Older taxpayers may be entitled to some age-based tax breaks. Here are the details: Catch-Up Contributions to Retirement Accounts Older taxpayers can make extra "catch-up" contributions each year to certain types of tax-favored retirement accounts. For the 2019 tax year, the maximum catch-up contributions are: $1,000 for traditional and Roth IRAs, … [Read more...] about Tax Strategies for Seniors
Most private sector employers, for better or worse, put you in the driver's seat when it comes to saving for retirement. If you're a genuinely savvy and diligent investor, you might prefer the flexibility of rolling over your accumulated retirement savings into an IRA. This choice assumes, however, that your next employer's 401(k) plan allows you to move money into it from another 401(k) … [Read more...] about Changing Jobs? What Will Become of Your 401(k) Balance?
Small business owners have several options for their retirement plans. Two tax-smart and flexible alternatives are SIMPLE IRAs and solo 401(k) plans. If you're eligible for these types of plans and you want to maximize your tax-deferred savings, which makes more sense? Here's a series of side-by-side comparisons to help you decide.Eligibility Requirements SIMPLE IRASolo 401(k)SIMPLE IRAs … [Read more...] about SIMPLE IRA vs. Solo 401(k): Which Is Right for Your Small Business?
Every year, the IRS releases cost-of-living adjustments to qualified retirement plan amounts. For tax year 2019, many of the limits applicable to pensions and other retirement plans will increase. But some will remain unchanged from 2018. The following limits will increase for 2019 based on the cost of living: The elective deferral limit for employees participating in 401(k), 403(b) … [Read more...] about IRS Ups the Ante on Retirement Contributions
Most 401(k) plans permit hardship withdrawals, though plan sponsors aren't required to allow them. As it stands today, employees seeking to take money out of their 401(k) accounts are limited to the funds they contributed to the accounts themselves, and only after they've first taken a loan from the same account. Loans must be repaid, of course. The theory behind the loan requirement is that … [Read more...] about Congress Raises 401(k) Hardship Withdrawal Limits