Beware the Tax Torpedo!

Large retirement account balances can cause Social Security tax problems Building a nest egg and holding a majority of your assets in your retirement accounts as long as possible may seem like a good idea, but waiting longer than you need to start taking distributions can also cause a tax problem. When you reach age…

Avoid these IRA mistakes

These days we need to do all we can to boost our retirement savings, and tax breaks can help. To build your individual retirement account and maximize your potential savings, avoid these common IRA mistakes: Don’t delay opening an IRA. The earlier you start, the longer your savings will compound tax-deferred. Those extra early years…

Two five-year tests for Roth IRAs

The pros and cons of Roth IRAs, which were introduced 20 years ago, are well understood. All money flowing into Roth IRAs is after-tax, so there is no upfront tax benefit. As a tradeoff, all qualified Roth IRA distributions can be tax-free, including the parts of the distributions that are payouts of investment earnings. To…