Tax Warrior Chronicles

“Roth or Reason” – A Case for Baby Boomers to Move to Roth IRAs

Posted on Fri, Aug 06, 2021

By: Stefanie Ostrich, CPA

 

A Roth IRA is a retirement savings account in which after-tax dollars are invested and both the earnings and the principal withdrawals become tax-free qualified distributions, when taken after reaching age 59 ½ and after the Roth account has been open for 5 years. While it’s often thought Roth IRAs primarily benefit young people, they can also be a beneficial tool for Baby Boomers—in a big way. Here’s how…

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Protecting Your Heirs from Taxes and Creditors After the SECURE Act

Posted on Fri, Jan 29, 2021

By: Elizabeth M. K. Witko, MAcc, MSF, and Robert N. Polans, CPA, MT, PFS

 

The tax impact of the Setting Every Community Up for Retirement Enhancement (SECURE) Act’s 10-year limited stretch can be a “keep you up at night” concern for individuals who have amassed substantial qualified retirement accounts. Often, these individuals have a substantial portion of their investment portfolios accumulating and growing in tax-deferred retirement accounts, and as a result of the SECURE Act, could be passing down a massive income tax liability to their heirs.

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IRS Expands the Definition of Coronavirus-Related Distributions

Posted on Wed, Jul 22, 2020

The Treasury Department offered easier access to retirement savings in March 2020 as the economic hardships resulting from the COVID-19 pandemic became a forgone conclusion.  Three months later, The IRS has expanded eligibility for coronavirus related distributions and provided further insight into how these new rules should be applied in Notice 2020-50.

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IRS Grants Extensive Relief to 2020 RMD Recipients

Posted on Mon, Jun 29, 2020

If you received a Required Minimum Distribution (RMD) in 2020, you should take careful note of guidance contained in the recently issued IRS Notice 2020-51 regarding the CARES Act’s waiver of 2020 RMDs and a taxpayer’s ability to rollover such distributions.

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GUEST BLOG - Are Most of Your Retirement Eggs in the Same Tax Basket?

Posted on Wed, Feb 12, 2020

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.

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The SECURE Act - Significant Changes for IRAs and 401(k)s – Part II

Posted on Fri, Jan 03, 2020

By: Beth Gaasbeck, CPA, MBA and Robert N. Polans, CPA, MT, PFS

 

Welcome to Part II of our two-part blog discussing the SECURE Act and its impact on retirement and estate planning.  The Act was signed by the President on December 20, 2019, and is effective as of January 1, 2020. Today’s focus is on the not-so-good parts of the Act.

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The SECURE Act - Significant Changes for IRAs and 401(k)s – Part I

Posted on Thu, Jan 02, 2020

By: Beth Gaasbeck, CPA, MBA and Robert N. Polans, CPA, MT, PFS

 

On December 20, 2019, President Trump signed the Setting Every Community Up for Retirement Enhancement Act (the SECURE Act) as part of the Further Consolidated Appropriations Act, 2020, effective 1/1/2020.  Not exactly a Holiday present, there are favorable and unfavorable provisions impacting your retirement planning.  In this two-part series, we will take a closer look at the highlights under the  law.

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Retirement Planning Late in the Game

Posted on Thu, Sep 26, 2019

By: Matthew Walker, CPA

 

Every day you put off funding your retirement is another day your nest egg could be growing. Starting late may seem like a tall task, but it is still possible to set aside enough for a comfortable retirement if you begin the process now, rather than later. It is first imperative that you develop a plan, set goals and begin action. The longer you wait, the harder it will be to catch up. Here are some tips to help…

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Talking Taxes with Kids – 529 Plans, IRAs and 401(k)s

Posted on Thu, Aug 15, 2019

By: Stacie L. Court, CPA, MST

 

There are many benefits to contributing early to education plans, IRAs, and 401k’s – the largest benefit being the advantage of time to compound funds in tax-advantaged accounts.   Children have many years to grow the earnings in these funds, but how do you talk to your kids about the complex world of investing in these types of funds and encourage them to start early? 

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Retirement Savings Strategy Thwarted by New Tax Law

Posted on Thu, Mar 15, 2018

By: Karolyn R. Banks, CPA, MT

 

Another casualty of the 2017 Tax Cuts and Jobs Act (“TJCA”) is the ability to recharacterize a Roth IRA conversion. Prior to this change, taxpayers generally had until October 15 of the year following the year of a Roth IRA conversion to recharacterize the transaction. With the president’s signing of the TJCA, those saving with Roth IRAs must rethink this strategy.

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