Retirement Feed

So that you can enjoy lazy days in your retirement like this couple, take advantage of tax-saving retirement moves by the October filing extension deadline. (Photo by Pug50 courtesy Flickr CC) If you're one of the millions who's put off filing your tax return until October, you know that due date — it's Monday, Oct. 16, this year — is just a week away. (More on this, complete with filing tips coming soon!) But mid-October is also a key deadline for other tax tasks, particularly when it comes to retirement savings. Here are a couple of retirement-related tax matters to... Read more →


October marks the start for many companies of open season for employees' workplace benefits, many of which provide workers some nice tax savings. It's also a good month to make other tax-related moves. It's time to turn our attention to health care again. This time, though, it's not medical insurance via the Affordable Care Act/Obamacare. Instead, October marks the beginning of open enrollment season for workplace-provided benefits at companies across the country. Decide now for next year: Open enrollment periods vary from company to company. Most run from two to four weeks for workers to evaluate their current benefits and... Read more →


Congress hopes to move beyond talk and have tax reform details in writing by mid-November. The Senate Budget Committee released its 2018 budget blueprint on Sept. 29, setting the stage for up to $1.5 trillion in tax cuts over the next 10 years. That's an astounding, alarming, amazing, pick-your-adjective amount. But the figure that caught my eye, and which earns this week's By the Numbers honor, is 13. As in Nov. 13. That's the date set in the Senate budget resolution by which it wants some legislative flesh attached to the framework of a tax reform that Republicans released on... Read more →


We'll finally know this week just what's in the Trump Administration's tax plan. One area individuals and businesses are closely watching is whether the proposal will include changes to company-offered retirement plans known as 401(k)s. Photo by 401(k) 2012 via Flickr Most workers participate in a traditional 401(k) plan, in which employees' retirement contributions are made with pre-tax dollars, the fund grows tax-deferred and then account owners pay tax on their withdrawals in retirement at ordinary income tax rates. These 401(k)s are attractive to many not only because of the usual match by their employers of at least some contributions,... Read more →


Texas Rep. Kevin Brady, left, accepts a truckload of help from his New York colleague Rep. Tom Suozzi to help Hurricane Harvey victims. Now Brady wants to offer more help via special tax relief for retirement account withdrawals. (Photo from Rep. Brady via Facebook) Here's a clear indication that tax reform isn't going to be as easy as many hope. Talk of tax reform has focused variously on tax rate cuts, deduction reductions and overall simplification of the Internal Revenue Code. Rep. Kevin Brady, the Texas Republican in charge of the House tax-writing committee, is himself considering adding a new... Read more →


Aside from the damage that hurricanes cause, one of the biggest problems is that they often, especially in September, effectively come back to back. Hurricanes Katia, Irma and Jose (left to right) lined up earlier in September. (National Hurricane Center radar image) That's what happened with Hurricane Irma. The angry sister of Hurricane Harvey walloped all of Florida three weeks after coastal Texas was gut-punched by Harvey's historic flooding. The back-to-back U.S. landfalls was a first for Category 4 storms. The only good news here, at least tax-wise, is that the Internal Revenue Service has a Harvey template for Irma... Read more →


Residents of Houston and much of southeast Texas are still dealing with Hurricane Harvey's floods. Texas National Guard members are helping. (Photo by Staff Sgt. Tim Pruitt via Flickr) If you're looking for financial help to help you recover from Hurricane Harvey damages, the Internal Revenue Service says you can use your workplace retirement plan money. The IRS announced that 401(k)s and similar employer-sponsored retirement plans can make expedited loans and hardship distributions to hurricane victims and members of their families in Texas. Since Harvey made initial landfall the night of Aug. 25 near Rockport, Texas, the federally-declared disaster area... Read more →


With every story or study on retirement savings, I hope the news will be better. It usually isn’t. Overall, most of us aren’t saving enough — or any! — for our retirement. And things aren’t likely to get better. In fact, Uncle Sam is shutting down a program created just three years ago to encourage lower-income earners to save for retirement. The U.S. Department of the Treasury announced on Friday, July 28, that it soon will wind down the myRA program. Broadening retirement savings: The name is short for “my retirement account” and was a play on IRA in an... Read more →


Every financial adviser recommends that we all keep close eyes on our retirement plans, either by reallocating our investments or contributing more money throughout the year. Just last week, in fact, I put contribute to your retirement accounts on my list of 6 tax moves to make in July. Whether you're a young worker like those in this group or an older employee, take full advantage of your workplace's retirement plan. I felt like a bit of a nag, but apparently, folks — especially younger workers — need the constant reminding, especially when it comes to defined contribution plans such... Read more →


It's officially summer. Time for fun at the beach. And fun making mid-year tax moves. Happy July 5th, the start of midyear tax planning. With six months left in the tax year, it's the perfect time to make some tax moves that could reduce your 2017 tax bill. Here are six easy ones to take care of in July. 1. Adjust your payroll withholding. Did you get a big tax refund this year? Or did you owe Uncle Sam more than you expected? Either situation means that you need to reassess your payroll withholding. It's easy to do. Just give... Read more →


Regardless of your thoughts, political or otherwise, when it comes to L'affaire Comey, most of us can relate to the recently fired FBI director. Like James Comey, we've at some point been out of job, either by our choice or because we, too, were let go. If that happens to you, here are five steps to take. And, of course, there are tax implications for each of the post-job moves. 1. File for unemployment. If you lose your job through no fault of your own, for example, a corporate downsizing, you should be eligible for unemployment. Depending on the circumstances,... Read more →


How do I celebrate each May 5th? With guacamole, cerveza y tax tips! That means here in our Texas casa, every day basically is Cinco de Mayo. Yes, there really is a tax component to Cinco de Mayo beyond the use of my poco Español as a framework for this list. That's why I feel justified in urging you — before you lift a glass, be it brimming with Dos XX or a margarita, to commemorate Mexico's victory over French troops at the Battle of Puebla on this day in 1862 — to check out these five tax-smart tax moves.... Read more →


May flowers, like these Texas poppies, are one of the reasons it's such a merry month. Other reasons to be happy is that there are some tax moves you can make now to cut your 2017 IRS bill. (Photo by Kay Bell) Welcome to the merry, merry month of May, which is particularly joyous for folks who've finished up their 2016 tax returns. That's almost 136 million of us, with around 17 million of those 1040 forms arriving at Internal Revenue Service processing centers in the final days of this year's main filing season. While the 2017 filing season got... Read more →


Time is rapidly running out this filing season to make tax-saving moves, but adding to an IRA could be a win-win-win. Win 1: Added feathering of your nest egg Most moves to reduce a tax year's final bill must be taken by the end of that tax year. Once Dec. 31 is past, so are your options to reduce what you owe the Internal Revenue Service. IRA contributions, however, are different. You have until the April fling deadline, which is next Tuesday, the 18th this year, to put money into your traditional or Roth IRA and have the contribution count... Read more →


Most of us — Internal Revenue Service data shows around 70 percent of taxpayers — don't mess with itemized deductions. Instead this large group of filers claims the standard deduction. It's easy. The amount to claim is based on your filing status and found directly on the 1040 and 1040A forms; it's included with the personal exemption amount(s) on 1040EZ. It's also adjusted annually for inflation, so generally if you make more the next tax year, your standard deduction is larger. But sometimes standard deduction claimants feel a bit left out at tax time, since so much is written (guilty!)... Read more →


Most high-income investors last were likely a little bummed last week when the Republican proposal to replace the Affordable Care Act failed. It didn't have anything to do with their personal opinions on Obamacare or health care in general. It meant that the Net Investment Income Tax, or NIIT, remains on the books. This 3.8 percent surtax is assessed on capital gains, dividends, interest, and other passive income earned by single investors making more than $200,000 a year or $250,000 if married filing jointly. It was one of the many ACA-related taxes that would have been repealed if the GOP... Read more →


The annual tax filing due date is the big day each April. Instead of falling on the usual April 15, the deadline for getting your taxes to the Internal Revenue Service this year is April 18. But some older taxpayers, specifically that first big batch of Baby Boomers who turned 70½ last year, are facing a key April 1 tax deadline. April Fools' Day is the deadline to take your first required minimum distribution, or RMD, from certain tax-deferred retirement accounts if you didn't do so by the end of last year. No kidding. If you miss the April deadline,... Read more →


Time is rapidly running out to make year-end tax moves, but if you're a septuagenarian, here's one that you definitely cannot afford to overlook. If you're 70½ or older, congrats and happy, happy on all those full and half birthdays! Remember, though, that now you must take out at least an IRS-specified amount from your tax-deferred retirement account(s) by the end of the year. Miss the deadline and you'll owe a major tax penalty. (Birthday party photo courtesy Today's Senior Network) Half birthday tax trigger: If you're 70½ and have a traditional IRA (or more than one of these accounts)... Read more →


The Dow is again flirting with the 20,000 mark. It closed today at 19,974.62. The run-up has finally prompted you to evaluate your portfolio to make some year-end rebalancing and, of course, tax moves. Good for you. But don't undermine that effort by making these tax mistakes. 1. Buying a tax bill: Timing is everything, especially when it comes to investments. If you buy a mutual fund just before it issues capital gains distributions, you've also bought yourself a tax bill. Worse, Morningstar's Christine Benz points out, by adding a holding to your taxable account before it makes a payout,... Read more →


It's December 1. December. The last month of the year. How the heck did that happen!?! It hasn't even gotten good and cold yet here in Central Texas. We -- OK the hubby, at my nagging request -- put our Christmas tree up the first week of November this year. That means I have all of December to focus on taxes! OK. I've got my calendar and weather rant under control. But my urgency about how quickly 2016 is passing remains. That means we're rapidly running out of time -- check the countdown clock there in the right hand column... Read more →