In our busy lives, it is not uncommon to put off for tomorrow the things we do not have time for today. This is especially true for things that make us uncomfortable or require significant time and effort to squeeze into our already hectic schedules. However, by sweeping these issues under the rug, you are […]
Employers sponsoring non-safe harbor 401(k) plans must perform annual ERISA- and IRS-mandated testing to ensure they do not disproportionately favor highly compensated employees (HCEs) over rank-and-file non-HCEs. It is critical businesses understand the formulas for these nondiscriminatory tests and the steps they must take to fix a failure or risk losing their plans’ tax benefits. […]
A Roth IRA is a unique retirement savings vehicle that allows eligible individuals to set aside money today for a potentially tax-free income stream in the future. Like a traditional IRA, a Roth arrangement allows individuals to make annual contributions of up to $7,000 in 2024, or $8,000 for savers age 50 and older. However, […]
If you think the only form of cheating in a marriage happens in the bedroom, you would be wrong. A growing number of marriages suffer the damaging effects of financial infidelity in which one spouse intentionally lies about or hides assets or other financial information from the other spouse. Both are examples of betrayals that […]
Individual retirement accounts (IRAs) and 401(k)s serve an important purpose in estate planning, helping individuals begin saving during their prime earning years to provide a financially secure retirement in the future. Contributions to these plans today reduce your taxable income in the year of contribution and grow tax-deferred until you take distributions in retirement. However, […]
Memorable vacations do not happen by chance. They require a certain level of effort and planning to ensure that you stay within your budget and maximize your actual time away for fun, sightseeing and relaxation. The more you plan, the more likely your getaway will meet your expectations. With this in mind, it is surprising […]
In April 2024 the IRS again granted taxpayers another year of relief from compliance with recently enacted laws concerning required minimum distributions (RMDs) from tax-deferred retirement accounts, including individual retirement accounts (IRAs) and 401(k)s. The SECURE Act, signed into law in 2019 and amended in 2022 under SECURE Act 2.0, introduced a requirement that certain […]
Like many estate-planning decisions, whether it is best to invest in a traditional 401(k) retirement savings plan or a Roth 401(k) comes down to taxes. More specifically, does it make more sense for you to pay taxes on your withdrawals in the future or on the contributions you make today? Weighing these options requires a […]
In 2023, the U.S. Department of Labor, Internal Revenue Service and Pension Benefit Guaranty Corporation issued final changes to how retirement plan sponsors must annually report critical information about their employee benefit plans under the Secure Act that was passed into law in 2021. These updates apply to employers’ annual reporting obligations for the 2023 […]
There are times when you may find yourself short on cash to cover necessary and often significant expenses, such as unexpected medical bills and home repairs, or helping a child pay for graduate school or the purchase of a new home. While it may be tempting to tap into your retirement savings, it is important […]