The retirement plan limits for 2020 have been released. The 401(k) and SIMPLE IRA deferral limits increased, along with the catch-up contributions for 401(k), maximum plan compensation, the annual addition limit and the taxable wage base. Other limits, such as the contribution limit for personal IRAs, catch-up contributions for both SIMPLE IRAs and personal [...]
We get asked a lot of questions about IRAs, and their required minimum distributions or RMDs. So Mindy Norton with our JMF Pension Consulting group provided the following synopsis to help explain. As an individual, you are required to begin taking minimum distributions from your traditional IRA in the year in which you turn [...]
When should you start saving for retirement? Probably the best answer is “yesterday.” If you have not started putting aside funds yet, the next best answer is “now.” In other words, it is not too early to begin saving for retirement, nor is it generally too late, although the manner and method of savings [...]
If your company maintains flexible spending arrangements (FSAs) for the healthcare expenses of employees, an important deadline may be looming: March 15, 2019. For many healthcare FSAs, this is the last day you can withdraw funds from the balance in your account for 2018. Background: An FSA is funded with pre-tax dollars, so there are [...]
The IRS recently announced annual cost-of-living adjustments for certain retirement plans for 2019. See the chart below for several key changes. Limit for 2018 Limit for 2019 Maximum annual dollar benefit for a defined benefit plan $220,000 $225,000 Maximum dollar limit on additions to a defined contribution plan $55,000 $56,000 Maximum amount of [...]
Benefits for future generations With a traditional IRA, you can build up a nest egg over time without paying any current tax, including an account where you have deposited a rollover from a qualified plan like a 401(k). However, if you do not need to draw heavily on the IRA, assets may be preserved for [...]
When it comes to taxes and finance, there is usually no going back in time. However, a notable exception may apply if you converted a traditional IRA into a Roth last year. In effect, you can undo a conversion as if it never happened. This “recharacterization” technique has been repealed by the Tax Cuts and [...]
If you are like many Americans, you may have visions of an early retirement. Although there are usually hurdles to overcome, the dream may become a reality, depending on your answers to the following questions. Q. Are you financially ready to retire? Some people begin planning for retirement when they are young, intending to call [...]
There are two basic types of IRAs: the traditional IRA and the Roth IRA. With either one, the deadline for contributions for the 2017 tax year was April 17, 2018. There are no extensions for making IRA contributions for 2017, even if you obtain an extension for filing your return. It is important to know [...]
No matter the size of your company, employees may enjoy the benefits of participating in a 401(k) plan. One of the most popular retirement plans around, this is a proven way to save money for your golden years. Just consider these attractive features: *Tax deferrals: You pay no current tax on the amount of [...]