In order to contribute to any IRA you need to qualify. You must have compensation of wages or self-employment. Due to a new law recharacterization of ROTH conversions is not an option but you can recharacterize IRA contributions. Recharacterizations of either a ROTH or a Traditional IRA must be valid in their own … [Read more...]

Many people take early withdrawals from their retirement accounts and this can cost you a lot of money in both penalties and earnings. Millenials are most likely to take retirement money out, with boomers being the least likely. Debt is the number one reason for the withdrawals. People have high credit card debts and … [Read more...]

Deferring your taxes is a good way to save on your taxes today, and can be done by contributing to a tax-deferred retirement plan such as a 401K but it isn't necessarily the best option for high-income earners. Tax deferred today means taxes are paid at retirement. Those individuals who are planning for the same income … [Read more...]

You need examine your retirement contributions and make them! Consider rolling bonuses to your retirement. Convert Traditional Roths to Roth IRA's. The advantage of this is you will be able to pay taxes now and let them grow at a tax free level. Do some tax planning with your advisor to take advantage of any losses … [Read more...]

Taxes are one of the main expenditures during retirement. Family, career and other factors are less as important and pressing as earlier in life, and a move may be beneficial to your wallet. Changing zip codes could save you thousands of dollars in tax dollars. Each state has a different tax scheme, and the amount you … [Read more...]

Although it is exceedingly rare for IRS audits to occur, there are several red flags that can trigger an IRS audit. Individuals with higher incomes are generally more likely to be a target for audits. As well, any discrepancies in an individual's reported income can lead to an audit. This includes earnings from all … [Read more...]

Many retirees are wondering how they can maintain a healthcare plan up until their Medicare coverage kicks in. For most individuals who have recently retired, their COBRA benefits should cover them for up to 18 months after they officially retire. Unfortunately, you will still have to pay the full premium which can … [Read more...]

Retirement is something we all look forward to. With the excitement of starting this new chapter, retirees are facing an almost inevitable financial burden of long term care. Insurance premiums covering such care can be somewhat exorbitant. For this reason, advisors are providing alternative options to those preparing … [Read more...]

Having a heavy tax burden can hurt your retirement savings. Different states each have different tax codes and would affect your retirement income differently. New York is an example of a poor state for retirees tax bill (and everyone else's tax bill as well). Illinois also has an expensive tax code with extremely high … [Read more...]

The state you live in can greatly affect the amount of taxes you pay. Each state uses different state and local tax codes to fund the government. Each state is ranked. Alabama, for example, is a tax friendly state and Alaska is the most tax friendly state. In Alaska, there is no income tax, and each resident receives … [Read more...]