Tax Warrior Chronicles

The recently enacted Coronavirus Aid, Relief and Economic Security Act (CARES Act) created temporary provisions affecting two types of taxpayers: those who wish to preserve depressed retirement assets, and those who need emergency liquidity from their retirement assets.

Taxpayers Who Wish to Preserve Depressed Retirement Assets

The CARES Act temporarily waives the existing 2020 required minimum distribution (RMD) requirements for certain qualified plans, such as defined contribution plans under sections 401(k), 403(b) and Section 457(b) and for individual retirement accounts (IRA).  If a taxpayer’s initial RMD for calendar year 2019 was deferred to 2020 and not yet taken, the deadline

Over the last several months, the dreaded “R” word has crept into the news. There are economists and analysts who are on both sides of the fence on whether a recession or market correction is coming soon. To help our clients and subscribers, we’ve asked our friend, Robb Parlanti, CFA, a 30-year market veteran and financial advisor at BLBB Advisors, to shed some light on the situation. In Q&A form, here are Robb’s thoughts…

Q: I am worried financial markets will fall significantly. What can I do to prepare myself?

Robb: It is important to keep 3 things in mind:  

1)  Financial markets regularly go through up-and-down periods. While it can be unsettling, investors are generally best served

By: Jeremy Gussick, MBA, CFP

As the busy tax season gets into swing, we like to tap friends in the financial planning world to help our clients and subscribers with their planning. Jeremy Gussick of LPL Financial is no stranger to our subscribers.  Today, he talks about taking distributions from various types of retirement accounts in the most tax-efficient manner.

Did you know that the vast majority of assets currently saved for retirement in this country are all in the same tax-structured account type?  And by saving in this fashion, you may be placing some significant limitations on your ability to grow and distribute your assets during retirement in the most tax-efficient manner? 

By: Eric R. Elmore

While Congress waivers on whether to reduce retirement savings deductions, all pillars of our retirement system appear to be under stress. A recent Government Accountability Office (GAO) Report highlights the challenges faced by each component of the U.S. "retirement system" and argues the case for a fundamental re-evaluation to better promote future retirement security. And, though the Republican-led Congress rarely follows the GAO’s lead, if you have a 401(k), you should be paying attention to what it is saying.

The GAO says fundamental changes have occurred over the past 40 years to the nation's retirement system, which comprises three main pillars: Social