Retirement Feed

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 →


Taxes are about dollar amounts and dates. April 15 obviously is the biggie. But Dec. 31 is almost as important. The end of a tax year is, for the most part, the last time you can make tax moves that could help lower your coming tax bill. While we all wish we could have Homer Simpson's to-do list, when it comes to taxes, most of us need to take care of some potentially money saving tax tasks by Dec. 31. With the days rapidly dwindling (the countdown clock over there in the ol' blog's right column is tracking them), here... Read more →


Welcome to Part 3 of the ol' blog's series on 2017 inflation adjustments. You can find links to all 2017 inflation posts in the first item: Income Tax Brackets and Rates. Today we look at changes to retirement and pension plans. Note: The 2017 figures apply to 2017 returns that are due in 2018. For comparison purposes, you'll also find 2016 amounts to be used in filing 2016 returns due next April. Save early, save often to create an overflowing nest egg. Even in a contentious election year, there's one thing everyone in all political parties can agree on: retirement... Read more →


October is one of my favorite months, as it ushers in crisp, cooler temperatures. This time of year has two names, fall and autumn. October also is a key month for some important tax moves. And there are many names for taxes, too, although not all printable in the ol' blog. I know it's tempting to rant about taxes instead of thinking about or actually acting on the, especially this time of year. I, too, want to be outside enjoying the arrival of fall. But first I have to take care of a couple of tax tasks. Here are four... Read more →


Saving is the key to the kind of retirement you want. The earlier you start, the better. Among the goals posted during this year's FinCon, an annual gathering of creators (including me!) of various personal finance material and advice, is to, as a couple of participants noted, retire soon. Retirement savings that receive special tax code treatment can help folks put away money for their post-work years. In fact, a recent survey by Harris Poll for Scottrade found that nearly half of investors (46 percent) wish they had started saving earlier. More than a third (38 percent) wish they had... Read more →


On lazy Sunday afternoons, my thoughts -- after I'm through cursing the idiotic plays my Dallas Cowboys make -- often turn to retirement. Retired couple enjoying a lazy day outdoors. (Photo by Pug50 courtesy Flickr CC) The hubby and I have been saving for a long time with the goal of making all our days like Sundays, without, of course, the 'Boys' frustrations. The tax code offers many ways to help us save for what we hope will be our golden years. Sen. Ron Wyden, however, thinks Uncle Sam needs to revise some of the retirement related tax provisions. The... Read more →


A workplace retirement plan, where, in most cases, employees automatically put in some pre-tax money each pay period, is the largest -- or only -- savings many folks have. Louisiana flood victims can now access their retirement money more easily to help with their recovery efforts in flooded areas, like Port Vincent shown in this National Oceanic and Atmospheric Administration (NOAA) photo. Click the image to see more NOAA aerial before-and-after shots of Louisiana flood areas. And as the name indicates, retirement plans are for your post-work years. Sometimes, though, you need that money before you leave the workforce. In... Read more →


The United States of America tomorrow will celebrate 240 years since independence was declared. Here's wishing all my fellow Americans a safe and fun July 4, especially since our break from Britain was based in large part on the battle cry that "Taxation without representation is tyranny." But another important date arrived just a few days earlier. On July 1, the first of the Baby Boomers turned 70½. Judging by this cake's flames, this guy looks to be a bit older than 70½. That half birthday date is crucial because it means owners of tax-deferred retirement accounts like traditional IRAs... Read more →


Happy Mother's Day! There's no better Mother's Day gift for mom than a homemade "<3 U Mommy" message. (Photo by Donnie Ray Jones via Flickr) Whether you are a mom, have a mom, are planning to become a mom, or are married to a mom, chances are you're taking part in a special celebration this Sunday. Enjoy! Millions of magnificent moms: While mothers often feel like they're all alone when it comes to their kids, some data from the U.S. Census Bureau shows that all types of mothers have lots of company. Overall, there are 43.5 million women between the... Read more →


One way to survive working on your tax return with a deadline looming -- April 18 this year -- is to make sure you don't make any easily avoidable filing mistakes. Similarly, you don't want to overlook any tax breaks. I guess that technically omitting a tax claim could be considered a mistake, but for the sake of keeping things clear -- and for providing an added blog post topic! -- I've separated them. Searching for tax breaks? Below are 18. (James Corden GIF via CBS.com/Corden) And to save you time in your search for ways to cut your tax... Read more →


Tax Day 2016 is a week away. That's seven days to take care of your annual tax duty. It also means you have seven days to complete some other tax-related tasks that have an April 18 deadline, too. Here are eight tax tasks to take care of in this final filing week. The Beatles' most famous tax-related song is Tax Man, but for this post, Eight Days a Week works, too. Click image to watch the YouTube video of the more-than-a-week-long song. 1. File your 2015 tax year federal tax return. If you miss this deadline by more than 60... Read more →