Category Archives: Retirement,Taxes

Tax Benefits of a Simplified Employee Pension (SEP) IRA

Retirement plans, like simplified employee pension (SEP) IRAs, go hand-in-hand with attractive tax benefits. Designed for self-employed individuals and small business owners, SEP IRAs allow employers to directly contribute to their employees’ retirement accounts and their own. In return, they

We’re Selling Our House and Netting $550k to Downsize for Retirement. How Can We Avoid Capital Gains Taxes?

Selling your home to downsize can make your retirement more financially stable, but if you have a profit on the sale you might owe capital gains taxes. Fortunately, in many cases those selling their primary residence who are single can

I Was Planning on Taking My RMDs and Converting Them to a Roth, But Was Told I Can’t. Is That True?

If you’re looking for a tax-savvy way to deal with you required minimum distributions (RMDs), converting them into a Roth IRA isn’t an option. A financial advisor can help you plan for RMDs and figure out if a Roth conversion

Ask an Advisor: Do IRA Withdrawals Before I Turn 73 Count Toward My RMDs?

Do withdrawals from my pre-tax IRA and/or 401(k) accounts made before I turn 73 count toward my RMDs? Or do RMDs start at 73 without regard to prior withdrawals? I’m 70 now and still working and collecting Social Security, but

I’m Almost 60 and Have $1 Million in My IRA. Should I Switch to Roth Contributions?

Should you switch from pre-tax IRA contributions to Roth contributions? Imagine that you’re steadily contributing to a traditional IRA. This provides you with an annual tax deduction. However, contributing to a tax-deferred account comes at the cost of having to

I’m 70 With $1 Million in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?

Compared to many retirees, you are in an enviable position with $1 million socked away in your IRA at 70. Still, living a secure, comfortable retirement that can last two decades or more takes planning. Making sure your nest egg

Ask an Advisor: Is it Wise to Convert 10% of My 401(k) into a Roth IRA Each Year to Avoid Taxes and RMDs?

Is it wise to start converting my 401(k) into an IRA (and then Roth) by 10% per year in order to avoid having to claim too much income each year when converting and also avoid RMDs as much as I

Americans Need the Most Help With This Piece of the Retirement Planning Puzzle

More than any other aspect of retirement planning, workers need help calculating how much to save for their golden years. That’s according to a new 401(k) survey commissioned by Charles Schwab, which also revealed $1.8 million to be America’s new

Ask an Advisor: I’m 73 and My 401(k) ‘Hasn’t Been Doing Well.’ Should I Withdraw My Money and Invest in CDs?

I’m 73 and my 401(k) hasn’t been doing well for the last few years. Would it be a good idea for me to withdraw my money from my 401(k) and pay the tax that I will have to pay eventually

How Asset Location Can Help Minimize Taxes and Maximize Returns

When investing for retirement, it’s critical to stay focused on what really matters — after-tax returns, or the profits left over after any tax payments.