A dozen tax tips for the 2021 filing season
Our panel of experts have identified these 12 credits, deductions and more as worth particular attention this year.
RMDs
Retirement accounts at ‘serious risk’ as COVID-19 spurs bankruptcies
To protect client nest eggs, advisors must know which savings vehicles are protected — and they’re not all created equal.
Your client was laid off before they could retire? Here’s what to do
Older clients who have lost a job prior to retirement are advised to first consider filing for unemployment insurance and begin making revisions to their budget.
What taxes will my clients owe in retirement?
Aside from income taxes, retirees will also pay consumer taxes and may face a 3.8% Medicare surtax.
How new rules could affect the way clients save for retirement
Seniors choosing between traditional and Roth IRAs must account for their current and future tax rates.
Why clients need more than one source of retirement income
While it’s recommended they have at least three sources when they retire, just 6.8% of savers have done so, according to a report.
The problem with the 4% retirement income rule
While there are strategies to help reduce risk, clients should recognize the order of investment returns is crucially important, an expert writes.
Will your clients be forced to claim Social Security early?
Many pre-retirees leave the workforce sooner than anticipated as a result of various factors, such as job loss and illness.
Why retiring at 65 could become a thing of the past
“By and large, many simply have not yet saved enough to retire comfortably.”
Benefits Think From 401(k)s to stretch IRAs, what the Secure Act means for clients
This recently passed bill is groundbreaking retirement legislation and will substantially alter the landscape for employer-sponsored retirement plans and individual savers.
Dan Collins
Commonwealth Financial Network
Buyout or pension? The heavyweight bout of retirement decisions
Buyout amounts are high right now, but there are many other factors to consider when guiding employees to the right choice.
Clients are too conservative with their retirement accounts
Retirees often only take distributions when they are forced to do so because of the IRS’ RMD rules, an expert says.
Employees should be thinking about their kids’ retirement, too
Workers can use Roth IRAs, 529 plans and — yes — life insurance to give their children a head start.
It’s not too late to boost retirement savings for 2018
There are still several moves that clients can make to reduce their 2018 tax bill.
Does Social Security still have a minimum benefit?
To qualify for this feature, clients should have reported a minimum amount for at least 11 years.
Time is running out to fix this IRA mistake and avoid a 50% penalty
If the client makes a mistake, they are advised to take the RMD as soon as they discover it so they can ask the IRS for a waiver of the penalty.
Even when IRS says yes, company plans may say no
Retirement plans may decline to offer delayed RMDs, plan loans, stretch and hardship distributions and a host of other legally sanctioned tax maneuvers.
7 things retirees need to know about their 2018 tax return
Seniors are more likely to opt for the standard deduction, which increased under the new tax law, but those who want to maximize their deductions have several considerations.
How to avoid cashing out your 401(k)
A recent ruling by the U.S. Labor Department could open the door for automatic 401(k) transfers between employers, which means fewer workers will be tempted to cash out.
New 401(k) legislation could bring big changes for retirement savers
One of the major provisions of proposed legislation would require 401(k) plans to offer annuities so participants could create new income streams.
