The earlier that you make your IRA contributions, the longer they will grow. So, under that theory, you should have made your IRA contributions for tax year 2017 some 12 months ago! But if you didn’t, it’s still not too late. The IRA was born in 1974, in the Employee Retirement Income Security Act (ERISA). […]
Read MoreCategory: Retirement Planning
Bunching Charitable Gifts
With the dramatic increase in the standard deduction in 2018, to $24,000 for married couples, many charities are worried that the tax incentive for donations will disappear, leading to lower gifts. Because the state and local tax deduction is now capped at $10,000, married taxpayers will need to have at least $14,001 in additional deductions […]
Read MoreRetirement planning after tax reform
Several tax reform ideas affecting retirement planning were bandied about as the recent legislation was being prepared, including limits on deductible 401(k) contributions, elimination of “stretch IRAs,” and requiring minimum distributions from Roth IRAs, similar to the treatment of traditional IRAs. In the end, only one significant change made it into the final legislation, together […]
Read MoreInherited IRAs
DEAR TRUST OFFICER: I’ve inherited a substantial IRA from my parent. What are my choices? Can I roll over the money into my own IRA? What I’d really like to do is convert the inherited IRA to a Roth IRA. — FORTUNATE HEIR DEAR FORTUNATE: Those approaches are not available to you. Because you are […]
Read MoreRetirement Readiness
DEAR TRUST OFFICER: How much money must I have in order to be able to retire? Is $1 million enough? — PEAK EARNING YEARS DEAR PEAK: The better question is: How much income will you need during your retirement? If you will have a pension and Social Security checks coming in, $1 million might easily be […]
Read MoreReview Your IRA Beneficiary
Sometimes mistakes in an estate plan can be repaired after death. Sometimes not. Charles Sukenik executed his will on November 4, 2004. His estate was to be divided between his surviving spouse, Vivian, and the couple’s private foundation. His revocable trust was restated at the same time, giving Vivian certain real property and the balance […]
Read MoreIRAs for charity
Charitable giving in the U.S. rose 2.7% last year, reaching an all-time record of $390.05 billion. That’s also a record in inflation-adjusted dollars, reports the Giving USA Foundation in its annual report on philanthropy. Individuals, foundations, and corporations contributed to the robust growth in philanthropy, while bequests were projected to have declined by 9.0%. Some […]
Read MoreYou can’t do that with an IRA
Terry Ellis decided that his next job would be selling used cars. To that end, he formed a limited liability company (LLC), which was to be 98% owned by his IRA. The other 2% would be owned by an unrelated third party working for the LLC. Ellis was designated as the general manager of the […]
Read MoreThree questions to ask yourself before you retire
As you near the end of the final lap of your working years, and begin scanning the retirement horizon, you are likely to be seeking the information that you need to ensure a secure financial future. Here, we touch on three of the most important questions that you should be asking yourself as you transition […]
Read MoreAging in place
The percentage of Americans over 85 is growing steadily, and with it a new conundrum: Where will the elderly live? For a growing number of folks who are still healthy, the answer is “right at home.” According to the federal Consumer Expenditure Survey, from 1987 to 2003 the percentage of persons over age 85 living […]
Read More