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Essential Tax Tips for IRAs

  Woe to the taxpayer who runs afoul of the numerous and confusing IRA rules. There are forms to file, contributions to make, distributions to take, and penalties to avoid. While corrections are possible, it’s best to avoid mistakes in the first place. Here’s what you need to know. IRAs come with a lot of rules, especially when it comes to taxes. Failure to follow the rules can result in penalties, excise taxes, double taxation, and in a worst-case scenario, the loss of your tax-deferred status. Here are a few tips that can help you avoid unnecessary—and costly—errors. IRA CONTRIBUTIONS: ELIGIBILITY AND OPERATIONAL REQUIREMENTS You must meet certain requirements in order to be eligible to make contributions to IRAs. Failure to meet these requirements can result in excess IRA contributions. Excess contributions that are not properly corrected can result in double taxation and excise tax being owed to the IRS. The following are some general eligibility requirements that must be met for I

Portfolio Protection with Possibilities Virtual Workshop!

  The most common comments we receive after our “Portfolio Protection with Possibilities Workshop” are: “I had no idea these types of investments were available to me!” Are you cautious about taking on risk with your investments?  Does market volatility make you uncomfortable? If you are looking for an investment strategy that protects your core portfolio(1) and gives you confidence to stay invested through market cycles, then don’t miss our virtual educational session on Principal Protected Notes. These unique solutions can: — Protect your principal against losses, if held to maturity(1) — Increase the potential for growth and/or income(1) — Help you feel more financially prepared to meet your investment goal Our next workshops will be on the following days: Thursday, June 13, 2024 06:30 PM Eastern Time (US and Canada) Saturday ,  June 15, 2024 11:00 AM Eastern Time (US and Canada) Email me at cyril.white@fourfinancial.com if you have any questions or would like to reserve your sp

The 4 Biggest 401(k) Rollover Mistakes

  By Cyril S. White, Certified Financial Planner™   As people transition from one employer to another, many are still uncertain about what to do with their 401(k) plan when they leave their employer. Here are 4 of the biggest mistakes you should avoid when considering what to do with your 401(k).   A plan participant leaving an employer typically has four options (and may engage in a combination of these options as well), each choice offering advantages and disadvantages.   1.      Leave the money in his/her former employer’s plan, if permitted; 2.      Roll over the assets to his/her new employer’s plan, if one is available and rollovers are permitted; 3.      Roll over to an Individual Retirement Account (IRA); or 4.      Cash out the account value.  Each of these options can have a significant impact on your financial goals if not planned and implemented correctly.    We have found that there are four major mistakes people make with regard to their e

SECURE ACT 2.0 New Retirement Rules Workshop

 The SECURE Act is by far the biggest retirement-oriented legislation to be enacted in over a decade. Many Americans are left wondering, “What does this mean for me?” Here’s what you need to know. If you have any questions or if I can do anything for you please do not hesitate to email me at cyril.white@fourfinancial.com or call me at (734) 272-4322! I recently did three webinar workshops covering the SECURE Act and what it means for our clients.  Click on the video link below to watch the full webinar workshop! The SECURE Act, passed in late 2019, is by far the biggest retirement-oriented legislation to be enacted in over a decade. The new law is a very good thing for some retirees and not such a good thing for others. Barely half of the workforce is covered by a retirement savings plan through their employer, and the SECURE Act is meant to address this issue, among other things. Here are some key provisions in the Act that may affect your retirement plans. 1. Required minimum distrib

Have you or someone you know been "Laid Off"?

  Have you or someone you know been "LAID OFF" recently? If so, you/they may find the video I made below useful. You this as an opportunity to grow! Please let me know if I can help you in any way! A plan participant leaving an employer typically has four options (and may engage in a combination of these options), each choice offering advantages and disadvantages. For balance, please update your material to include each option below: Leave the money in his/her former employer’s plan, if permitted; Roll over the assets to his/her new employer’s plan, if one is available and rollovers are permitted; • Roll over to an IRA; or Cash out the account value.  The opinions voiced in this material are for general information only are not intended to provide specific advice or recommendations for any individual securities offered through LPL Financial. Member FINRA/SIPC. Investment advisory services offered through Four Financial Management a registered investment advisor & separate

New Retirement Rules Workshop

  Do you know how the SECURE act legislation will affect your retirement plan this year? IF NOT I would like to invite you to a very special event: "New Retirement Rules Understanding SECURE Act 2.0” At this one-hour workshop you will learn: • Why your 401(k) plans will look different in the future. • New age requirements for taking distributions from your retirement accounts. • “The Death of the Stretch IRA” and what it means for your family. • How 529 plan funds can jump start retirement savings. • One way young professionals can save for retirement and pay student loan debt. • The importance of planning and managing your taxes. • How small businesses can benefit from starting a retirement plan. You will also receive a copy of SECURE Act 2.0 Highlights —a comprehensive reference addressing he major changes in legislation and giving practical action steps. We all need to understand the new retirement-related legislation because the changes are far-reaching, subject

5 Tax Gotchas in Retirement

  By Debra Taylor, CPA/PFS, JD, CDFA If you are wealthy and reaching your distribution phase, your high-balance retirement accounts can create some burdensome tax situations, particularly when it comes to legacy planning. Here are five potential pitfalls you should be aware of. Most people are very proud of their wealth. And why shouldn’t you be? You’ve worked your entire life to build your investment accounts and often sacrificed a great deal. However, once you hit the retirement “spending” phase, the government changes the rules on you, and you could essentially be punished for decades of following the rules and scrupulously saving. The saddest part is that most people don’t know what awaits them, as they have never retired before and they aren’t aware of the potential pitfalls that their accumulated retirement accounts can cause. WHO IS MOST AT RISK? Those with traditional IRAs of about $2M face significant tax planning challenges, when you consider how much an account that size cou