For many retirees, tax planning doesn’t end when the paychecks stop; it becomes even more critical. Even if you’ve saved diligently, how and when you withdraw money from your retirement accounts can significantly impact how much you owe the IRS. Understanding how to lower your taxable income in retirement can help stretch your savings, preserve […]
What Happens If You Forget to Take Your Required Minimum Distributions (RMDs)?
Retirement accounts are designed to help your savings grow tax-deferred, giving you more flexibility and security in your later years. But even the most carefully planned accounts come with rules you need to follow to avoid unexpected costs. Missing certain required withdrawals can trigger significant penalties. This guide explains how Required Minimum Distributions (RMDs) work, […]
Social Security Survivor Benefits and Taxes: What Widows Should Expect
When a spouse passes away, it can feel like your world has been turned upside down. Beyond the emotional weight of grief, there are also significant financial considerations to manage. Among the most critical are Social Security survivor benefits. For many widows, these benefits offer essential income support. However, understanding how they are taxed can […]
The Most (and Least) Tax-Friendly States for Retirees
Choosing where to live in retirement can stretch or shrink a nest egg by six figures over time. The most tax-friendly states for retirees aren’t just the ones with no income tax. They’re also the places where Social Security, pensions, IRA/401(k) withdrawals, property, sales, and even estate rules align with your specific income mix and […]
Roth IRA Penalties: What Are They & How Do I Avoid Them?
Roth Individual Retirement Accounts (IRAs) are popular investment vehicles that offer tax advantages for retirement savings. However, it’s crucial for account holders to be aware of Roth IRA penalties to make informed financial decisions. This article will explore the various penalties associated with Roth IRAs, helping readers navigate the potential issues and optimize their retirement […]
What is a SEP IRA?
A Simplified Employee Pension Individual Retirement Account, commonly known as a SEP IRA, is a retirement savings plan designed for self-employed individuals and small business owners. This article explores what SEP IRAs are and the tax implications associated with them. What is a SEP IRA? A SEP IRA is a type of retirement plan that […]