New IRS Guidance for Designated Roth Accounts

Does your employer offer a 401(k), 403(b) or governmental 457 plan? If so, you may be able to set up a designated Roth account through your company's plan. Then your Roth account will be allowed to receive designated Roth contributions that are taken out of your salary through so-called "salary-reduction contributions." Here's more on how this strategy works, why it may be advantageous for certain Continue Reading

Are You Turning Age 70 1/2? Here Is Some Important Information

Under the so-called required minimum distribution rules, you must begin taking annual payouts from your traditional IRA by no later than April 1st of the year after you turn 70 1/2. (If you have a Roth IRA, it is exempt from these rules.) It doesn't matter if you would prefer to leave your traditional IRA untouched. You must begin taking required minimum distributions by no Continue Reading

April 1 Is an Important Date for Older Taxpayers with IRAs and 401(k)s

Did you turn age 70 1/2 in 2015? If so, an important date is coming up soon. By April 1, 2016, you must begin taking required minimum distributions (RMDs) from your traditional IRAs — or face a steep penalty. (Lifetime distributions don't need to be taken from Roth IRAs at any age.) A participant in a qualified retirement plan — for example, a 401(k) plan — must begin taking distributions by Continue Reading

Lower Tax Bill with a Last-Minute Retirement Account Contribution

Tax Day is right around the corner. If your tax bill is higher than you'd like, there may still be an opportunity to lower it: If you qualify, you can make a deductible contribution to a traditional IRA right up until the Tuesday, April 15, 2014 filing date and still benefit from the resulting tax savings on your 2013 return. Small business owners can set up and contribute to a Simplified Continue Reading