Retirement Feed

Donald J. Trump speaking to supporters at an Aug. 15 rally in New Hampshire. (Photo from Trump's official personal Twitter feed) "If for some reason I wouldn't have won the [2016] election, these markets would have crashed. That'll happen even more so in 2020. See, the bottom line is … you have no choice but to vote for me because your 401(k), everything is going to be down the tubes. So whether you love me or hate me, you've got to vote for me." — Donald J. Trump Trump's recent campaign rally exhortation that people had to vote for him... Read more →


With markets down, it could be time to harvest tax losses or perhaps convert a traditional IRA to a Roth retirement account. What's scarier than Superman, the 415-foot tower roller coaster at Six Flags Magic Mountain in Valencia, California, that hits triple digit speeds? Some investors might say the recent stock market gyrations. (Photo courtesy Six Flags) Is the recent stock market drop freaking you out? How about the roller coaster ride back up, at least for a while, today? Yeah, it's worse than many stomach-churning amusement park rides and I'm right there, holding a barf bag, with you. But... Read more →


Hello, July! The heat is definitely on, but there are plenty of ways to chill out, both personally and to put your 2019 tax bill on ice. Yes, I know you want to head to the pool or beach or catch up on neglected novels or just be generally lazy. I'm right there with you. But you'll enjoy those recreational pursuits a lot more once you've taken some steps, like the seven listed below, to lower your 2019 tax bill. Let's get to 'em! 1. Get weather ready. A low pressure trough moved overnight from Georgia to the Florida panhandle... Read more →


Social Security might be in trouble, but as long as it's around in some form, Uncle Sam will keep collecting taxes related to it. That includes not only the payroll taxes from workers that go toward funding the federal retirement benefits, but also in some cases on the benefits themselves. If you have enough money when you're older to enjoy time the way you want with your grandchildren, you might face taxes on your Social Security benefits. Stop me if you've heard this before. Social Security is running out of money. That's the latest word from the trustees of the... Read more →


Thanks to much larger standard deduction amounts under the Tax Cuts and Jobs Act (TCJA), fewer filers are itemizing deductions. But that doesn't mean they aren't still writing off some tax-deductible expenses. During this first filing season after the many changes wrought by the latest tax reform law, taxpayers are still claiming what used to be called above-the-line deductions. Technically, they are and always have been adjustments to income. They got the above-the-line moniker because they previously appeared in the last section of the old long Form 1040, just above the last line of that form's first page where your... Read more →


Tax Day every April is the biggie for individual taxpayers. That's when our annual Form 1040 is due. And yes, I know this year there are two Tax Days, since Patriot Day celebrants in Maine and Massachusetts get until April 17 to send in their federal returns. But most of us must meet the April 15 deadline, so that's what I focus on in this post. Completing a 1040, however, is not the only mid-April tax deadline. It's just one of the 10 tax tasks listed below that many taxpayers also must make by next Monday, April 15. 1. File... Read more →


April 1 could be costly for older retirement account owners. No fooling. That's the deadline for taking a required minimum distribution, or RMD, if you turned 70½ last year and did not take the specified amount from your tax-deferred retirement funds by Dec. 31. RMDs are, as the name says, required amounts that you must withdraw from a retirement plan that's been earning money over the years without you having to pay tax on it. The tax law has been letting these accounts ride for years, decades in many cases. But when you get halfway through your 70th year, the... Read more →


Welcome to the Year of the Pig, the twelfth of the 12-year cycle of animals which appear in the Chinese zodiac related to the Chinese calendar. While this year and sign has many meanings in the Chinese culture, it also conjures thoughts of the ubiquitous piggy bank and how we can save more this and every year, regardless of which calendar we follow. Click image to watch full Year of the Pig video from Global News Canada. More of us could use a bigger, and fuller, piggy bank this 2019's Year of the Pig arrives. The recent federal government shutdown... Read more →


The current, and longest-ever, federal government shutdown has made it painfully clear that many of Uncle Sam's employees don't have an emergency savings cushion. They are not alone. A study released last summer found that only about a quarter of all Americans across nearly all ages and generations have no savings whatsoever in an emergency fund. Just more than a quarter of U.S. residents, 29 percent, had saved enough to cover six months' worth of living expenses. When people do save, they tend to do so for retirement. It's not necessarily that they're looking ahead to their golden years. Rather,... Read more →


Yes, I'll get to the tax moves to make by Dec. 31. Keep reading. But first I've just got to vent about some confusing year-end tax move info making the television and internet rounds. There's a tax feature that I've seen twice on local television and a couple of times online as a video with accompanying text and it's driving me crazy! It's about purportedly tax-saving moves to make in the last few days of 2018. Good idea. Confusing information. Specifically, one of the points is about charitable giving, which long-time readers know I'm a big fan of from both... Read more →


Truman the cat guarding presents under the Christmas tree. (Photo by Shawn Kinkade via Flickr CC) Ho, Ho, Ho, Happy Holidays! December is here. Time to decorate and, most importantly, get cracking on those gift lists. If you're not into frantic, crowd-fighting, last-minute shopping trips, here are five easy tax-related gifts for just about everyone on your nice list, including yourself. 1. Give to your favorite charities. You're probably already well aware of this option, since nonprofits have been sending out year-end donation solicitations since Halloween. Their urgency can be forgiven a bit more this year because of the tax... Read more →


North Carolina flooding in the wake of extensive hurricane rains. Photo courtesy Federal Emergency Management Agency A bill that would extend some expired tax laws, enact a handful of new ones and correct some errors in last year's tax reform bill is now before the House of Representatives. The extensive and expensive — the Congressional Budget Office estimates it will add another $55 billion to the federal deficit over the next 10 years — measure has a decent chance of clearing the House, where all it needs is the votes of the Republicans who control that chamber. Its chances in... Read more →


Welcome to Part 7 of the ol' blog's 2019 series on tax inflation adjustments. Today we look at changes to the Alternative Minimum Tax (AMT) and next year's Social Security wage base. You can find links to all 2019 inflation posts in the series' first item: income tax brackets and rates. Note: The 2019 figures apply to 2019 returns that are due in April 2020. For comparison purposes, you'll also find 2018 amounts to be used in filing this year's 2018 tax return due April 15, 2019. Taxpayers who face the alternative minimum tax, or AMT, see it as the... Read more →


Don't let tax turkeys gobble up your money. Make these tax moves, a couple of which are related to recent tax reform, this November and for sure by the end of 2018. South Park turkeys via Giphy It's November! The start of the holiday season. Time to get into the festive spirit with some year-end tax moves. "Whoa! Wait! What the what are you thinking?" you say. "I'm still adjusting to Standard Time and already have a huge to-do list to make sure my family has the perfect Thanksgiving. Then as soon as that's over, I've got to start with... Read more →


Updated Nov. 15, 2018 Welcome to Part 3 of the ol' blog's 2019 series on tax inflation adjustments. We started on Nov. 15 with a look at next year's income tax brackets and rates. Today we look at allowable annual retirement plan contributions amounts and, for some taxpayers, tax deduction options and limitations. Note: The 2019 figures apply to 2019 returns to be filed in 2020. For comparison purposes, you'll also find 2018 amounts to be used in filing 2018 returns due April 15, 2019. If this is how you want to spend all your post-work days, you need to... Read more →


Since it's unofficial retirement week here at the ol' blog, let's close it out with a look at how to move money from one retirement account to another and not upset the Internal Revenue Service or your nest egg. Life changes. That means sometimes you want or need to change your retirement plan. Say, for example, you have a 401(k) at one workplace, get a new job and open a 401(k) with that employer. What happens to the 401(k) you had at your prior job? In many cases, the company where you worked will let you keep it, although obviously... Read more →


You don't need a golden goose to have a great nest egg for retirement. You just need to contribute to one or more tax-favored retirement accounts. (Photo by 401(k) 2012 via Flickr) Congratulations to America's newest billionaire, the owner of the ticket bought in South Carolina that matched all the Mega Millions lottery numbers. That person is $1.537 billion richer, or more probably an $878 millionaire, since that's the cash payout amount. That lucky lottery player won't have to work another day or worry about retirement as long as he or she isn't a total spendthrift. Most of the rest... Read more →


As Donald J. Trump has been making the campaign rounds in advance of the midterm elections, he's made some interesting — OK, wrong — comments about taxes. And in trying to cover for explain those remarks, some folks are compounding the misinformation. The latest example underscores a misconception about how retirement account withdrawals are taxes. Trump's tax cut talk: Trump has been touting a pre-Nov. 6 tax cut of 10 percent for the middle class. While nothing is impossible in this crazy world, that's not likely since Congress is not scheduled to return to Capitol Hill until Nov. 12. Many... Read more →


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 →