September 25, 2016

Most People Take Social Security At The Worst Possible Age

stacked eagles

While taking Social Security at age 70 is not optimal for everyone, age 62 is optimal for almost no one.

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Don’t Forget to Rebalance All Your Assets

stacked rocks

It can be easy to forget about your company’s 401(k) because you aren’t depositing the money yourself, your pre-tax contributions are deducted from your paycheck and are electronically deposited by your employer.

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How Much Can I Contribute to My Retirement Accounts?

potted flowers

With many types of retirement accounts available, it can be difficult to keep track of how much you can put away where, especially if you are eligible to contribute to multiple accounts.

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Do Children Need To File A Tax Return To Fund Their Roth IRA?

Do Children Need To File A Tax Return To Fund Their Roth IRA?

The IRS does not require dependents whose gross income is only earned income to file a tax return if the amount is less than a certain amount.

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How Much Can I Withdraw in Retirement?

Seaside Golf

We have calculated safe withdrawal rates for ages 0 to 100 based on age-appropriate asset allocation mixes.

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Roth Recharacterization: May Change Your Required Minimum Distribution

Roth Recharacterization: May Change Your Required Minimum Distribution

A Roth recharacterization is a true undo; it is as though you never converted those assets in the eyes of the IRS. This includes recalculating your RMD had you not converted the assets.

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Roth Conversion: Take Your Required Minimum Distribution Out First

Roth Conversion: Take Your Required Minimum Distribution Out First

A simple summary of how to meet your Required Minimum Distribution in the same year as you perform a Roth Conversion is the axiom: RMD dollars must come out first.

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Qualified HSA Funding Distribution

Qualified HSA Funding Distribution

There is an obscure tax rule that allows a one-time Traditional IRA-to-HSA conversion called a Qualified HSA Funding Distribution (QHFD).

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Can I Contribute to Both a SEP and a 401(k)?

Can I Contribute to Both a SEP and a 401k?

SEP plans offer a powerful way to provide for your own retirement in the same way that 401ks do.

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What is a Roth Conversion?

What is a Roth Conversion?

If you don’t have retirement savings in Roth IRAs, it’s time you considered their benefits. Assets in traditional IRAs can be rolled into Roth IRAs without a withdrawal penalty.

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Can I Contribute to my Roth IRA?

Can I Contribute to my Roth IRA?

There are some cases that are not as straightforward and if you fall into these categories, you might not know whether or not you are allowed to contribute to a Roth IRA.

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Fund Your 401(k) If You Believe In Free Markets

Fund Your 401(k) If You Believe In Free Markets

I recently read a foolish article entitled “Call for a National Savings Plan” that assumed we haven’t tried a national savings plan already.

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Start Early on Retirement Planning

Start Early on Retirement Planning

Retirement planning should begin the moment you receive your first paycheck.

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Four Things You Can Do with Your Roth Before April 15

beach sprint

If you have not yet funded your Roth account for 2015, it is not too late!

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How Roth Conversions Are Reported to the IRS

How Roth Conversions Are Reported to the IRS

The Internal Revenue Service (IRS) is notorious for misunderstanding the recharacterizations of Roth conversions.

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What Counts as Wages for the Social Security Earnings Test?

What Counts as Wages for the Social Security Earnings Test?

Contrary to the normal way of things, this time what Uncle Sam gives with the IRS, he takes away with the SSA.

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Asset Allocations for UVA Retirement Plans at Fidelity

Asset Allocations for UVA Retirement Plans at Fidelity

The University of Virginia plan includes funds sufficient to produce these excellent portfolios.

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Marotta’s 2016 UVA Fidelity 403(b) Calculator

University of Virginia's Serpentine Walls

Age appropriate asset allocation for 2016 using the choices available in the University of Virginia’s Fidelity 403(b) Tax Deferred Savings Plan (TDSP).

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Marotta’s 2016 UVA Fidelity 401(a) Plans Calculator

UVA Fidelity 401(a) Plans Calculator

Age appropriate asset allocation for 2016 using the choices available in several of the University of Virginia’s Fidelity Retirement Plans.

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2016 Employer-Sponsored Retirement Account Limits

Retirement Cash Jar

Here are the limits for how much your employer can add to retirement accounts on your behalf.

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After-Tax IRA Contributions Must Be Reported On IRS Form 8606

After-Tax IRA Contributions Must Be Reported On IRS Form 8606

The backdoor Roth strategy involves contributing after-tax funds to a traditional IRA.

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Seven Reasons Your Retirement Might Fail

Seven Reasons Your Retirement Might Fail

“In 34 years as a financial advisor, he has seen many people flunk retirement, but investment performance has never been the cause.”

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Healthy And Wealthy Adds A Decade To Your Life Expectancy

Healthy And Wealthy Adds A Decade To Your Life Expectancy

The national average life expectancy is not a good measure for our clients’ life expectancy. That means planning beyond ages 82 and 85.

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Social Security Loopholes Scheduled to Sunset

Social Security Loopholes Scheduled to Sunset

The Bipartisan Budget Act of 2015 ends two very profitable Social Security optimization techniques that allowed some savvy beneficiaries to take up to $50,000.00 in additional lifetime income.

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Understanding Your IRA Required Minimum Distributions (RMDs)

Understanding Your IRA Required Minimum Distributions (RMDs)

After you reach the age of 70 1/2, the IRS requires you to begin taking minimum distributions from your traditional retirement accounts.

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When Are Taxes Due On A Roth Conversion?

When Are Taxes Due On A Roth Conversion?

Any tax which is ultimately going to be owed is owed by April 15th. Otherwise it may be subject to interest and penalties.

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Can I Put My RMD Into A Roth IRA?

Can I Put My RMD Into A Roth IRA?

Annual required minimum distributions must be satisfied before any additional amounts are converted to a Roth IRA.

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How to Factor Social Security into Your Safe Withdrawal Rate

How to Factor Social Security into Your Safe Withdrawal Rate

Carefully computing and adding your Social Security early retirement safe withdrawal rate can safely boost your early retirement standard of living without jeopardizing your future finances.

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Radio Interview: Which Retirement Accounts Should I Fund?

Radio Interview: Which Retirement Accounts Should I Fund?

David John Marotta was interviewed on radio 1070 WINA discussing which retirement accounts you should fund for the best tax outcomes.

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Can I Contribute To A Roth IRA If I Don’t Have A Job?

Can I Contribute To A Roth IRA If I Don't Have A Job?

You can only contribute to your Roth IRA if you have what the IRS calls “earned” income. This makes it all the more important to contribute to your Roth IRA every year you can.

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How Much Can I Contribute To A Roth IRA If I Earn Too Much?

How Much Can I Contribute To A Roth IRA If I Earn Too Much?

I’m on the borderline for being able to contribute to a Roth IRA. How do I determine how much I can contribute?

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How To Correct Excess Roth IRA Contributions

How To Correct Excess Roth IRA Contributions

Regardless of the reason, if you have put too much money in your Roth IRA, the solution is the same.

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Can I Contribute To My Wife’s Roth IRA?

Can I Contribute To My Wife's Roth IRA?

I have earned income but my wife does not. Can I contribute to my wife’s Roth IRA?

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What is a Backdoor Roth?

What Is A Backdoor Roth?

Even over the income threshold, you may still be able to add funds to your Roth IRA with what is called a backdoor Roth.

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Mailbag: Roth IRA vs. Roth 401k, Which is Better?

Mailbag: Roth IRA vs. Roth 401k, Which is Better?

Differing legislation makes one of the two preferable.

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Advisors Save Clients From Costly Mistakes By Social Security Workers

Advisors Save Clients From Costly Mistakes By Social Security Workers

Those costly mistakes are a fifth of a million dollars in most cases.

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Medicare High-Income Premium Surcharges – 2015

Medicare High-Income Premium Surcharges - 2015

These premium surcharges are typically unavoidable except for some planning a Roth Conversion.

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Financial Advisors’ New Patron Saint Just Cut From the Detroit Lions

Financial Advisors’ New Patron Saint Plays For the Detroit Lions

When Ryan Broyles scored a $3.6 million dollar contract after being drafted in the first round he did something quite rare – he sought as much advice as he could find.

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How Much Can I Contribute To My SEP IRA?

How Much Can I Contribute To My SEP IRA?

The calculations for this are a little strange. Here is the formula and two examples of how it works to help you.

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Which Retirement Account Should I Fund?

Which Retirement Account Should I Fund?

Which account you should fund depends on your circumstances, but here are some general guidelines you can follow to make your decision.

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How Can I Contribute to Two Roths?

Pineapple in Field

The terminology is a little confusing, but you are allowed to have and contribute to both individual retirement accounts and employment-related retirement accounts.

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How to Convert Taxable Savings Into Your Roth IRA

How to Convert Taxable Savings Into Your Roth IRA

Most tax professionals don’t think of such tax planning opportunities, because they have to focus on complying with tax accounting regulations.

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Fund Your Roth IRA Even When You Can’t Afford It

Fund Your Roth IRA Even When You Can't Afford It

Sometimes, there isn’t enough to do it all. Even then, fund your Roth.

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What Should I Do With a 401(k) From a Previous Employer?

ballet leap

You have 3 basic options, but whichever option you choose, do not lose track of the accounts you own.

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The Behavior Gap: Finding Your Financial Balance

The Behavior Gap: Finding Your Financial Balance

Planning for your financial future is largely a question of dealing with the constant tension between living for today and saving for some future event.

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The Complete Guide to Automating Your Savings

The Complete Guide to Automating Your Savings

After automating your entire investment plan, you can save and invest without even having to watch.

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Should I Fund a Roth or a Traditional Account?

Should I Fund a Roth or a Traditional Account?

As with many financial decisions, our gut feelings deceive us on this matter.

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Tax Alpha: How to Fix a Client Portfolio

Tax Alpha: How to Fix a Client Portfolio

Good financial planners can be worth their weight in gold in helping clients build a tax-efficient portfolio.

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Can I Contribute to a Roth IRA?

Fountain in Springtime

How do you know if you can contribute to a Roth IRA? See this flowchart for answers.

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Mailbag: Is There An Advantage For Me To Do A Roth Conversion?

Is There An Advantage For Me To Do A Roth Conversion?

My wife and I are 65 years old and I am newly retired. Is there any advantage in doing a Roth conversion this year?

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