Estate Planning

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Two important tax deadlines are coming up — and they don’t involve filing your 2022 tax return

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March 21, 2023 , ,

RMD Distribution

April 18 is the deadline for filing your 2022 tax return. But a couple of other tax deadlines are coming up in April and they’re important for certain taxpayers:

  1. Saturday, April 1 is the last day to begin receiving required minimum distributions (RMDs) from IRAs, 401(k)s and similar workplace plans for taxpayers who turned 72 during 2022.
  2. Tuesday, April 18 is the deadline for making the first quarterly estimated tax payment for 2023, if you’re required to make one.

Continue Reading: Two important tax deadlines are coming up — and they don’t involve filing your 2022 tax return

Retirement plan early withdrawals: Make sure you meet the requirements to avoid a penalty

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January 31, 2023 , , ,

retirement plan withdrawal

Most retirement plan distributions are subject to income tax and may be subject to an additional penalty if you take an early withdrawal. What’s considered early? In general, it’s when participants take money out of a traditional IRA or other qualified retirement plan before age 59½. Such distributions are generally taxable and may be subject to a 10% penalty tax.

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Save for retirement by getting the most out of your 401(k) plan

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December 20, 2022 ,

401k

Socking away money in a tax-advantaged retirement plan can help you reduce taxes and help secure a comfortable retirement. If your employer offers a 401(k) or Roth 401(k), contributing to the plan is a smart way to build a substantial nest egg.

Continue Reading: Save for retirement by getting the most out of your 401(k) plan

Answers to your questions about taking withdrawals from IRAs

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December 6, 2022 ,

RMD distribution

As you may know, you can’t keep funds in your traditional IRA indefinitely. You have to start taking withdrawals from a traditional IRA (including a SIMPLE IRA or SEP IRA) when you reach age 72.
The rules for taking required minimum distributions (RMDs) are complicated, so here are some answers to frequently asked questions.

Continue Reading: Answers to your questions about taking withdrawals from IRAs

Don’t forget income taxes when planning your estate

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September 20, 2022 ,

estate tax

As a result of the current estate tax exemption amount ($12.06 million in 2022), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. But now, because many estates won’t be subject to estate tax, more planning can be devoted to saving income taxes for your heirs.

Continue Reading: Don’t forget income taxes when planning your estate

How to avoid the early withdrawal tax penalty on IRA distributions

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July 26, 2022 , ,

IRA distribution

When you take withdrawals from your traditional IRA, you probably know that they’re taxable. But there may be a penalty tax on early withdrawals depending on how old you are when you take them and what you do with the money.

Continue Reading: How to avoid the early withdrawal tax penalty on IRA distributions

Your estate plan: Don’t forget about income tax planning

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June 14, 2022 , ,

Estate tax

As a result of the current estate tax exemption amount ($12.06 million in 2022), many people no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates won’t be subject to estate tax, more planning can be devoted to saving income taxes for your heirs.

Continue Reading: Your estate plan: Don’t forget about income tax planning

Is it a good time for a Roth conversion?

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May 31, 2022 , ,

Roth Conversion

The downturn in the stock market may have caused the value of your retirement account to decrease. But if you have a traditional IRA, this decline may provide a valuable opportunity: It may allow you to convert your traditional IRA to a Roth IRA at a lower tax cost.

Continue Reading: Is it a good time for a Roth conversion?

When inheriting money, be aware of “income in respect of a decedent” issues

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March 15, 2022 , ,

income in respect of a decedent

Once a relatively obscure concept, “income in respect of a decedent” (IRD) may create a surprising tax bill for those who inherit certain types of property, such as IRAs or other retirement plans. Fortunately, there may be ways to minimize or even eliminate the IRD tax bite.

Continue Reading: When inheriting money, be aware of “income in respect of a decedent” issues