April 24, 2014

Every Business Should Start a 401(k)

Small business owners

The president’s hope to restrict the plans should actually make owners more interested in creating one.

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At Least 65% Of Workers Fail To Save Our Recommended 15% For Retirement

Bag Lady

The study shows that 21 percent have saved nothing for retirement.

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How To Report Backdoor Roth In TurboTax

Turbo Tax Backdoor Roth

How to report a backdoor Roth in Turbo Tax.

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Obama’s myRA Plan Violates Multiple ERISA Laws

Go to jail

Willful violations of ERISA legislation carry criminal penalties of up to a year in prison for the plan sponsor and a fine of up to $100,000 for the corporation.

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Opening A Brokerage Account

Stone grid

Opening an account is the first step in getting started in investing.

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Retirement Plan Asset Allocation: University of Virginia Case Study

uva wise owl

Many people lack the time and expertise to develop an intelligent retirement asset allocation plan.

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UVA Tax-Deferred Retirement Plan Asset Allocation Tools

uva wise owl

We have created several asset allocation tools to aid those seeking an intelligently diversified portfolio.

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2013 IRA & Roth Contribution Limits

Retirement plan contrib limits 2013

There’s still time to make sure you’ve maxed out your retirement contributions — your future self will thank you.

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If Tiger Woods Can Contribute To A Roth, So Can You – Via Back Door

backdoor roth

A backdoor Roth IRA contribution requires some extra steps but allows high-income earners equal access to the tax-free benefits of a Roth IRA.

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How to Calculate An Advisor’s Value: Tax Efficiency

Chess White Pawn

A dollar saved on your taxes is better than a dollar earned which causes you to pay more tax.

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Is The Optimum Level Of Annuity Ownership Negative?

Sailboat to Money Island

Does it actually make sense that people should buy annuities as much as conventional wisdom says?

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How quickly should 401(k) deposits be remitted? ($ ?s)

$ Questions

As the payroll processor at our company, how quickly do I need to deposit 401(k) contributions into employee accounts? -Sincerely, Payroll Pam

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Is Your 401(k) Plan Secure?

raccoon stealing

Money deducted from your paycheck for retirement typically gets deposited quickly into your 401(k) plan. But this isn’t always the case.

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IRA Cap Gives Rise to New Funding Strategies

Be Outraged And Fund Your Roth

President’s proposal comes with silver linings for shrewd advisors

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Is A $3 Million IRA Sufficient For Retirement?

Five Presidents

$3 million today has the same buying power as $500,000 in 1970.

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More Than 25% of Americans Are Making a Financial Mistake

A Waste of Money

If you look beyond the short term, making this move is pretty clearly worse than using a high-interest credit card to pay your bills.

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Naming A Foreign 401(k) Beneficiary? ($ ?s)

$ Questions

You should have no problem naming your nephew as your beneficiary, but accessing the money from India after your death is more complicated.

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Financially Savvy Kittens on Retirement Plans

Financially Savvy Kittens on Retirement Planning

These kittens have retirement plans. Be more like these kittens.

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Three steps to find a missing 401(k) ($ ?s)

$ Questions

Literally tens of thousands of employees who were once participants in an employer-sponsored retirement plan (i.e., 401(k) plan, profit-sharing plan) neglect to take their retirement money with them.

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Is Your 401(k) Holding Too Much Company Stock?

company stock_t

Following the holiday season, many will feel the effects of overindulging on festive sweets. It turns out that your 401(k) also suffers when indulging on too much of a good thing.

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Last Chance for a Roth Conversion during 2012

Last Chance for a Roth Conversion 2012

While Roth conversions will be advantageous for some next year, they are advantageous for nearly everyone in 2012.

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Contributing to Multiple Retirement Plans ($ ?s)

$ Questions

This article reviews the coordination rules which govern the maximum contributions to 457, 401(k) and Thrift Savings Plan. Information on 403(b) plan maximums is also included.

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New 401(k) and IRA Limits for 2013

uncle sam_t

It’s time to consider adjusting your retirement savings. The Internal Revenue Service recently issued a variety of inflation adjustments for 2013, and retirement savers can now save even more.

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IRS Notice of Proposed Adjustment for Underpayment/Overpayment (CP2000) for 2010 Roth Recharacterization

IRS CP2000 Notice

Currently the IRS is sending notices to anyone who did a Roth Recharacterization in 2010 asking them to pay as though they kept the entire conversion amount.

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$ ?s: 72(t) and other Early Retirement Distribution Options

72t_t

There is a separate set of rules for those under age 55 or who are looking to distribute from an IRA. These rules focus on an exception called Substantially Equal Periodic Payments (SEPPs).

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Three Questions to Ask Before Establishing a New Company Retirement Plan

401k questions_t

Here are three questions that every small business owner should answer before establishing a new retirement plan.

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The IRA Charitable Donation in 2012

Gift

The tax code provision that allowed IRA owners to contribute up to $100,000 directly from their IRA to the qualified charity of their choice–without recognizing the donation as income–expired at the end of 2011, but what if it is reinstated?

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Mailbag: I’d like to withdraw money from my IRA to purchase physical silver.

1000oz Silver Bar

Precious metals will, on average, just keep up with inflation, but your after tax return would mean you fell behind inflation by the 28% tax you must pay.

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$ ?s: Roth or Pre-Tax 401(k)?

$ Questions

Here is the only question you should attempt to answer: Are you paying a higher tax rate now or later?

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Mailbag: How should I invest a Roth IRA that my children will inherit?

Treasure Chest Opening

Should it be invested aggressively, like 100% equities, or use the same split as my taxable investments, such as 50-50 stocks vs bonds?

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Tax Planning from the 2012 January / February issue of Planning Perspectives

NAPFA Planning Perspectives Jan-Feb 2012

“How can you respond if these new taxes are enacted? One option is to do a Roth conversion so that you can pay taxes now for those retirement funds.”

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Roth IRA Recharacterization 2012: Undoing a Roth Conversion

Roth Undo

Nearly everyone is an excellent candidate for a Roth conversion this year. You can always undo part or all of a Roth conversion with what’s called a recharacterization, so you can’t convert too much.

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Roth IRA Conversion 2012: Roth Calculator for Prof. Low Income

Stanford Quad

Who would have thought that someone earning $10,700 might want to purposefully push their taxable income up to $217,450 this year in order to pay $47,595 more in taxes at these lower 2012 tax rates?

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Roth IRA Conversion 2012: Roth Calculator for Mr. Esq

Roth IRA Conversion 2012 Calculator for Mr. Esq

Who would have thought that someone in the 33% tax bracket now who will be in a lower 28% tax bracket in the future might want to do a Roth conversion at his higher rates now?

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Roth IRA Conversion 2012: Roth Calculator for Ms. Small Business Owner

Roth IRA Conversion Calculator 2012 for Ms. Small Business Owner

Who would have thought that someone earning $400,000 might want to purposefully push their taxable income up to $1.2M this year in order to pay $280,000 more in taxes at these lower 2012 tax rates?

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Roth IRA Conversion 2012: Roth Calculator for Mr. Average

Roth Conversion Calculator 2012 for Mr. Average

Who would have thought that someone earning $75,000 might want to purposefully push their taxable income up to $275,000 this year in order to pay as much as possible at these lower 2012 tax rates!

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Roth IRA Conversion 2012: A Roth Conversion Calculator

Calculations

Nearly everyone is an excellent candidate for executing a Roth conversion this year. But it is helpful to have a target amount in mind before you begin.

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Roth 401(k) vs. Roth IRA (A guide for the perplexed)

$ Questions

A Roth provides more flexibility than its Roth 401(k) counterpart because you can access the principal at any time without penalty.

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Roth IRA Conversion 2012: Are You a Good Candidate?

Good Candidate

You may be a good candidate for a Roth conversion in 2012 if you can answer “yes” to any of these statements.

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The Absolutely Last Chance for a Massive Roth Conversion

Racoon in Tree

A tax tsunami is coming at the end of this year. This will be your last opportunity to safeguard your assets in a lifeboat and avoid getting swamped with taxes.

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$ ?s: Investment advice for those who don’t need the money

$ Questions

Q: I am a 65-year-old retired widow and I have a large IRA. How should I invest if I don’t need this money?

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$ ?s: Accessing 401(k) funds when disaster strikes

$ Questions

Q:What advice can you offer for how to go about accessing retirement funds after a hardship?

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Mailbag: Is there a certain Roth you recommend?

Amy Lee

I’m in my 20s and I’m just getting started in the working world.I’m also looking at a Roth IRA. Is there a certain Roth you recommend?

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Mailbag: Which of these 401k investment choices do you recommend?

Amy Lee

I’m in my 20s and I’m just getting started in the working world. Which of the attached 401k investment choices do you recommend?

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Roth Regrets? Still Time to Change

Wall Street Journal 2011-10-02

David John Marotta was featured in a Wall Street Journal article about the upcoming Roth recharacterization deadline.

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Retirement Plans’ Perilous Future

Venus Flytrap

Between threats of cutting tax benefits and crackdowns on non-compliant plans, for the retirement industry ‘stakes are higher than they ever were’

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The GAO Makes A Poor Financial Advisor

The GAO Makes A Poor Financial Advisor

If the GAO were giving you investment advice they would suggest that you not participate in your 401(k) and convert at least half of your retirement savings into an annuity laden with fees and expenses.

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How To Cut Taxes On Your IRA Withdrawals

how-to-cut-taxes-on-your-ira-withdrawls_t

This article from Donald Jay Korn for Investor’s Business Daily describes the benefits of advance tax planning to reduce the tax bite that is inevitable as you grow older and required minimum distributions (RMDs) become a larger portion of your retirement account.

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Video: A Roth Conversion Makes Cents

Marotta Youtube

There are years and situations when a Roth conversion is not appropriate, but they are often surrounded by years when it should be considered.

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Women Have Unique Financial Needs

Sophie Tucker

Retirement planning is even more crucial for women than for men.

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