The Biggest Tax Increase In U.S. History?
Forbes: “The Justice Department is calling the ObamaCare mandate a tax. . . . it amounts to what’s likely the largest tax increase in U.S. history.
The Ten Worst Money Mistakes Anyone Can Make
Free Money Finance: “I’ve said many times that success in managing personal finances is pretty simple: spend less than you earn over a long period of time. If this is the heart of your financial plan, it’s likely that you’ll be prosperous. That said, there is one other thing you’ll need to do – you must avoid the financial pitfalls that can significantly derail your finances. I call these the worst money moves anyone can make. I’m listing them below in countdown fashion along with some suggestions for avoiding them. Here are the top ten IMO:”
Inherited Retirement Accounts Require Careful Management
NJ.com: “The passing of retirement accounts, including traditional IRAs, requires particular attention because of the numerous statutory dictates, including Required Minimum Distributions (RMDs).”
How To Stretch Out An IRA
Forbes: “the term ‘stretch IRA‘ was used to describe the strategy in which a spouse, child or grandchild inherits a traditional pretax IRA and then draws out distributions (and hence tax deferral) over his or own life expectancy.”
New Year is a Good Time to Consider Adding Roth IRA to Financial Strategy
DesMoinesRegister.com: “The new year rings in a new financial planning strategy that could be right for many people: Roth IRAs. Previously, Roth individual retirement accounts were a tool only available to those who earned less than $100,000 annually, but now with the Tax Increase Prevention and Reconciliation Act of 2005, or TIPRA, everyone is able to participate. Roth IRAs can play an important role in retirement and estate planning because they are a tax-free growth vehicle, and there are no required minimum distributions. Investors should be cautious when using this tool, since the decision to convert a traditional IRA or eligible employer retirement plan to a Roth IRA can be complex. Ten questions that might arise when considering a conversion:”