Retirement Watch Weekly
Eight Strategies for Optimizing RMDs from IRAs
Required minimum distributions (RMDs) from traditional IRAs and other qualified retirement plans aren’t suspended in 2021. You need to take the RMDs, and you might as well consider some options and strategies that will maximize after-tax income and make the process easier for you.RMDs are a simple concept that became complicated after Congress and the […]
2021: The Year to Ensure Your Estate Plan Has Maximum Flexibility
Estates that are valued at $3 million and higher should have flexibility in their plans this year. The estate and gift tax law is likely to change soon, as described in the previous article. You should act now to avoid the worst effects of the new law. But your plan needs some flexibility because we […]
Congress is Coming After Your Legacy and Estate Plan: What You Should Know and Do Now
The push for higher taxes has begun, and estate taxes are among the first in line. Millions of people who haven’t had to worry about estate and gift taxes in recent years need to rethink their plans. Congress first went after your legacy and estate plan in 2019 in the Setting Every Community Up for […]
The Biggest Retirement Trend Affecting Your Nest Egg in 2021
Some key investment and economic trends of the last few years started to change in the last few months. I believe those changes will continue, and probably accelerate, through the rest of 2021. One change, which I’ve been highlighting for my paid-up Retirement Watch members, is that returns from U.S. stocks are unlikely to continue […]
How to Calculate the Required Minimum Distribution
The required minimum distribution (RMD) rules limit the extent to which an individual can use the tax deferral of an IRA or other qualified retirement plan. The RMD rules dictate when distributions must be made from the retirement plans of certain taxpayers. The rationale behind the RMD rules is that Congress provided the tax benefits […]
Bob’s Journal for 4/22
Economic Growth Surges Past Expectations The latest economic data show the economy is growing faster than most economists expected and faster than is currently priced into the markets. Almost all the data released recently were more positive than expected, and much of the data greatly exceeded expectations. Retail sales surged in March and showed that […]
Tax Court Shows Risks in Self-Directed IRAs & Unconventional Investments
A self-directed IRA is a good way to invest your retirement account in non-traditional investments. But a recent Tax Court decision shows the dangers of taking shortcuts and not setting up and operating the IRA the right way. In the case, the taxpayer had a SEP-IRA (Simplified Employee Pension Individual Retirement Arrangement). The custodian was […]
Can I Reinvest My Required Minimum Distribution?
The tax code and regulations have detailed and specific rules concerning who must take required minimum distributions (RMDs), when they must be taken, and how they are calculated. But there is no guidance about what a retirement plan owner or beneficiary can do with the RMD. The required minimum distribution (RMD) rules limit the extent […]
