Retirement Feed

Some of my retirement money is in stock funds. They've been going gangbusters. Until this week. I'm fighting the urge to look at what's happened with these plans' value. Did they tank along with the broader market a few days ago? Or are they edging back up with today's sort-of recovery? I'm curious, but I don't need that money right now. And I believe my investment choices are sound. So I'm going to ignore the current market gyrations and just let things ride. That's the advice most financial gurus are offering now. This week's downward trend is just an overdue... Read more →


Today is a great day for my mother. The Social Security Administration announced that she and her fellow Social Security recipients will get a get a 2.8 percent cost-of-living adjustment (COLA) in 2019. The 2019 COLA — the largest since the 3.6 percent bump in 2011 — means the average single retiree's federal retirement benefit will be $1,461 or $39 more a month than this year. My mom is thrilled. Those 30+ bucks will cover her monthly phone bill. Still stretching each month: Unfortunately, the upcoming benefits adjustment won't be enough to make up for more than a decade of... Read more →


IRAs come in two forms, traditional and Roth. You can convert a traditional individual retirement arrangement to a Roth account, but reversing that hits a roadblock under the new tax law. There are lots of good reasons to convert a traditional IRA to a Roth retirement account. There also are lots of good reasons to change your mind about that IRA conversion and switch the account back to its traditional form. But time to recharacterize your Roth IRA, as the reversal is known, is running out. And it will be gone forever, or at least through 2025 under the new... Read more →


October's here! In addition to making some general fourth quarter tax moves, this month is when many employees get to reassess and choose coming-year workplace benefits, many of which also offer tax advantages. And tax-free help paying off student debt could soon be part of those packages. Millennials have overtaken Baby Boomers as the largest generation in the U.S. labor force. That's why today's employers are trying to figure out exactly what these younger workers want. The traditional worker wishes still apply. All employees want decent pay, regular raises and promotion possibilities. But today's twenty- and mid-thirty-somethings want more, and... Read more →


One thing almost everyone agrees on, both politically and financially, is that we all need to do a better job of saving for retirement. But some young savers are undercutting their own efforts by regularly tapping their workplace retirement accounts early. As part of Labor Day celebrations, Donald J. Trump signed an executive order that, in part, instructed the Treasury and Labor departments to look into ways to make it easier and cheaper for smaller employers to band together to offer 401(k)-type plans for their workers. Expanding these tax-deferred workplace retirement plans is a good idea. With the demise of... Read more →


House Ways and Means Chairman Rep. Kevin Brady (R-Texas) was among GOP leaders who celebrated the six-month anniversary of the party's tax reform bill back in June. Now he and other Republicans want to expand that bill by the end of September. We're still waiting for clarification of many of the new tax laws in the Tax Cuts and Jobs Act (TCJA). In fact, some say we need clarification of clarifications; have you tried to decipher the new 199A business deduction even with the Internal Revenue Service guidance? But such lingering TCJA questions are not stopping Republican leaders from trying... Read more →


Summer is winding down, but someone needs to tell the thermometers. Across much of country, it feels like the mercury is about to burst and everyone is doing everything they can to stay cool. Sorry, I can't help you beat the heat. But I do have eight tax moves you can make in this eighth month of 2018 — which, with all those 8s, makes that this week's By the Numbers figure — that might be able to help lower the heat you're feeling when it comes to taxes. 1. Adjust your withholding. I know. I nag remind y'all of... Read more →


Photo by Chris Potter via ccPixs.com School is about to start, so all the students who contributed to the just-released July jobs report are wrapping up those seasonal gigs. Many of these young workers plan to use the money they earned to pay some of their college costs. Kudos for them for contributing to their educations. But it's also a great idea for young people to start thinking about the day when they can quit working for good. The problem is that too many young people, like a lot of us, don't think that far ahead. Plus, a young person's... Read more →


Republicans unveiled their outline for additional tax changes on July 24 and it's just that. A bare bones framework. House Ways and Means Committee Chairman Kevin Brady (R-Texas) acknowledged the skimpy structure. That was by design, he said, with the outline to serve as a starting point for his GOP colleagues to offer feedback. Yes, he said Republican feedback. As with the original Tax Cuts and Jobs Act (TCJA) that was enacted last December, Democrats were excluded from the legislative writing process. Once things are fleshed out, Brady said he expects a Tax Reform 2.0 bill to go before the... Read more →


One of those hammocks has my name on it, after I finish a few July tax tasks. (Photo by Roberto La Forgia via Flickr CC) School is out. The fireworks have been shot (except for the stashes of my neighborhood's teens, which based on prior post-July 4 experiences, probably will last another week). And the heat is definitely on. That means it's finally, fully summer. And that means that it's time to get down to some serious summertime tax moves. Yes, I know you want to head to the pool or beach or catch up on neglected novels or just... Read more →


The hubby and I, like every other person, are getting older every day. That means we're getting closer to claiming Social Security and Medicare benefits. Two recent reports on the status of those federal programs make me glad to be closer to our collection dates. Both Social Security and Medicare, according to the programs' trustees, will run out of money to pay beneficiaries in 16 years and 8 years, respectively. At least the grayer-every-day hubby and I will get some of the full payouts. Sorry about all you youngsters! OK, I'm really not that selfish. But we are a bit... Read more →


Losing your job. It's one of the worst things that can happen, especially when it comes as a total surprise. That's what folks who worked on Roseanne are dealing with after ABC pulled the plug on the rebooted sitcom. Being out of work is not so high-profile for most of us. But we all share the panic, anger and helplessness of suddenly losing the reason we get up every morning. To help you get through being let go, here are six steps you can take. And, of course, there are tax implications (nine total) for each of these post-job moves.... Read more →


Congratulations new graduates! If you're soon marching or have marched down the aisle to Pomp and Circumstance to receive your college diploma, welcome to the rest of your life. I remember that first summer after getting my sheepskin. It meant the part-time job I had at the local newspaper became a full-time gig. And that meant more money. That also meant a do-it-myself crash course — pre-internet! — in personal finance. Things worked out fine for me, but I admit it was simpler back then. Not that I'm that old, but college costs for a state university in Texas weren't... Read more →


Source: CafePress tax jigsaw puzzle Still trying to put the pieces of your Form 1040 (or 1040A or even 1040EZ) together? Time's running out. Tax Day is almost here. Since the tax filing deadline is April 17 this year, here are 17 tax tips. Not only do they earn this week's By the Numbers honor, some could help you put together a return to send to Uncle Sam on time and at the least possible tax cost to you. 1. File on time. Yes, this first tip is obvious, but a lot of people let the filing date slip by... Read more →


Tax Day is less than a week away. But finishing up your 2017 Form 1040 is not the only tax task facing millions of Americans. Here are 10 tax matters that must be taken care of by April 17. 1. File your 2017 tax year federal tax return. Yeah, I started with the easy (so to speak), obvious one. But it is the reason for the tax season. If you don't get your return into or on the way if snail mailing by Tax Day, the late-filing penalty is 5 percent of the additional taxes owed amount for every month... Read more →


Being your own boss means you are responsible for many tasks, including setting up a retirement plan for yourself and your business' employees. If you're self-employed, your primary focus, especially in your entrepreneurial effort's early years, likely is to just make sure your business survives. But once you're on stable business footing, it's wise to look into tax-deferred retirement plan options for your small business. Not only are these retirement accounts a great way to save for the day you are ready to stop working, they also can help you reduce your current tax bill. Here are three self-employed retirement... Read more →


The larger standard deduction under the Tax Cuts and Jobs Act (TCJA) that took effect this year has gotten a lot of attention. One of the big pluses, cite fans of the new nearly doubled standard deduction amounts, is that more people will claim them instead of itemizing tax deductible expenses. But regardless of whether you itemize now, plan to under the new tax law or never ever messed with a Schedule A and don't plan to start, there still are some tax deductions you can claim. They are what are popularly known as above-the-line deductions found directly on 1040... Read more →


If you celebrated your 70½ birthday last year, you could be facing a retirement plan withdrawal deadline in a few days. (Photo by Kay Bell) Tax-favored retirement plans are a big part of millions of Americans' nest eggs. Many individuals still contribute untaxed dollars to traditional IRAs. They opt for this original IRA option because their contributions also allow them to take an immediate deduction on their tax returns. Others put money into workplace defined contribution plans. These automatic contributions are made before taxes are taken out of their paychecks. This lowers the amount of money subject to payroll withholding.... Read more →


Photo by 401(k) 2012 via Flickr The Tax Cuts and Jobs Act (TCJA) prompted the Internal Revenue Service this week to reissue some tax-related inflation adjustments. However, one area was not affected by the TCJA's provisions. The amounts you can contribute in 2018 to your tax-favored retirement accounts did not change. There are two reasons for the retirement amounts' status quo. First, despite some Congressional discussions about changing retirement plans early in the tax bill's formulation, those proposals were dropped after much public outcry. (Sometimes our elected leaders do hear us!) Also, while the TCJA did change the tax-related inflation... Read more →


Welcome to the first work day of 2018. By now you (and I) have had enough coffee (maybe, even this late in the day) to think about what the year ahead will hold for taxes. Chippy the Dog via Giphy.com Since my personal orbuculum is still a little blurry — I'm blaming equally the aftermath of New Year's Eve festivities and the craziness that now rules Washington, D.C. — I have only six tax-related prognostications. But even with the fuzzy focus, one thing is clear. Most of what we'll see happen in the tax world in 2018 will be related... Read more →