by Julie Jaggernath Have you ever been surprised to find a dust bunny lurking in a corner? While it’s easy any time of year to clean them up once we spot them, we don’t look into the corners often enough to keep them at bay. The same can be said…
A Roth conversion ladder can help early retirees access retirement savings before age 59 ½ without triggering the usual early withdrawal penalty. The strategy works by gradually converting pretax retirement money to a Roth IRA. However, timing is critical: Each conversion generally has its own five-year waiting period before it’s…
Amanda Gomez submitted hundreds of rental applications for an apartment in Harlem, New York, last year. Most were met with silence. Fifteen, however, were outright rejected. When she subsequently noticed the same apartments relisted five or six times, Gomez suspected racial discrimination. In 2024, housing discrimination complaints filed with the…
In her half-century on earth, Torry Holmesly has been subjected to neglect, violence, eviction and homelessness. So, if you ask her about what life is like in a banking desert, forgive her for looking at you funny. And yet, Holmesly, 50, is far from a fool. She knows that not…
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Major changes to federal student loan repayment rules went into effect this month and are rippling across the system. Many…
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Each year, Social Security benefits may increase with a cost-of-living adjustment (COLA), but higher Medicare premiums can reduce how much of that raise reaches your monthly budget. Since both are calculated differently, they do not necessarily move at the same rate. Comparing the dollar value…
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How Does Medical Debt Happen? Some health costs don’t fit into a monthly budget. A major dental procedure or a new health problem…
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Team Name: Musgrave Dunn & AssociatesFirm: Merrill Wealth ManagementSenior Members: Travis Musgrave, Timothy Dunn, Valerie MarshallLocation: Lexington, KYTeam Custodied Assets: $1.4 billionBackground: Travis…
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One common misconception is that any adult child can request a share of a parent’s Social Security check simply because they’re related. In reality, eligibility on a parent’s record is narrow and depends on the child’s age, school enrollment or disability, and whether the parent is living, retired, disabled or…
Retiring at 65 with $1.6 million in a 401(k) could set you up for a much larger tax bill 10 years later. As the account continues to grow, RMDs may eventually force sizable taxable withdrawals, potentially pushing more of your retirement income into higher tax brackets.Why Your $1.6 Million 401(k)…
An investment can increase substantially in value without creating an immediate federal income tax bill. In a taxable account, gains generally aren’t taxed until the asset is sold. That tax deferral can be valuable, but when and how the gain is eventually realized can have a significant effect on the…
The 65-day rule can give certain trusts more flexibility when deciding when to distribute income to beneficiaries. The IRS may treat an eligible distribution made during the first 65 days of a new tax year as though it occurred in the prior year. This can potentially shift taxable income from…
Annuities can look tax-friendly because your money grows without an annual tax bill, but the real surprise often comes when you start taking money out. Depending on how the annuity was funded, withdrawals can trigger ordinary income taxes, early-withdrawal penalties and surrender charges. Combined, these costs can significantly reduce what…
A successor beneficiary is someone who inherits an individual retirement account (IRA) from a prior beneficiary rather than directly from the original owner. That second-generation inheritance can affect distribution deadlines, annual required minimum distributions (RMDs) and tax-planning considerations. Because of these implications, it’s especially important to understand the original beneficiary’s…
You inherited an IRA from a beneficiary, not the original owner. That distinction matters because you generally assume the existing distribution schedule and don’t start a new timeline. As a result, your options may be more limited than what is available for direct beneficiaries. Overlooking these requirements could accelerate withdrawals,…
Claiming a dependent does not reduce the taxes taken from each paycheck by a fixed amount. Instead, dependents may make you eligible for federal tax credits, and accounting for those credits on Form W-4 can change how much federal income tax your employer withholds. The impact that ultimately has on…
Federal employees with traditional Thrift Savings Plans can now convert money to a Roth TSP. This moves their future qualified growth and withdrawals into tax-free territory, but creates a substantial current-year tax bill. However, Roth TSP balances are not subject to lifetime required minimum distributions (RMDs). Here’s how the tax…
The average 401(k) balance is about $351,242, but taxes can reduce how much of that money is available to spend.1 Required minimum distributions (RMDs) can create taxable income once they begin, potentially increasing your tax bill. Planning when and how you take money from your 401(k) could help limit the…
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