Financial Planning

Barack Obama announced the new MyRA retirement savings vehicle during his State of the Union address that was put into action the very next day. Here’s a preliminary look at these new accounts, what the rules are, and how they will work.
At the beginning of 2008, I wrote this piece and was surprised at the positive responses that I received from clients. As usual, I have added a few new items for 2014 but have kept the fundamental framework the same because the basics really never change. So here we go again, back by popular demand!
The only thing permanent in Congress is increased complexity and taxes. The taxes are part and parcel to much of the complexity in government. Over the last three years we have had two major tax law changes with implementation of both permanent and temporary measures.
As we head into the final stretch of 2013, there are several retirement planning opportunities and deadlines to consider before year-end.
Every fall, the Social Security Administration (SSA) and the Centers for Medicare & Medicaid Services (CMS) announce limits and costs for the following year. This year the SSA has announced that beneficiaries will receive a 1.5% COLA adjustment
Flexible spending accounts are funded by employee salary reduction contributions. These contributions are tax-exempt for federal, state, FICA, FUTA, and typically state unemployment tax and workers’ compensation. Funds inside the FSA plans can be utilized to pay for certain qualified medical related expenses.
Some clients have asked about the way that we administer fees and if there was a more tax advantaged way to pay these fees. The following article discusses the tax consequences of paying fees in various ways as well as the ultimate benefit, if any, of choosing one manner over another.
Many retirees have a substantial portion of their assets in qualified plans and/or Individual Retirement Accounts (IRAs). It takes a working lifetime to save prudently and invest wisely to accumulate an adequate nest egg to retire on. A commonly overlooked issue, however, is to determine what will happen to the account at your passing.
If your company plan includes highly appreciated company stock, you may want to consider withdrawing the stock and rolling the rest of the plan assets over to an IRA.
In this paper I will discuss several other factors to consider when deciding whether a Roth IRA conversion is beneficial for your situation.