If you are newly retired or approaching retirement, you should be proud of your accomplishments! You have worked hard for many years and saved diligently. Now you can focus on your hobbies, goals, family, and just about anything other than working.
The newly passed SECURE Act changes the rules on IRAs and other retirement plans. While in the past beneficiaries were often able to “stretch” inherited IRA distributions over their lifetimes, now most non-spouse beneficiaries must take the distributions over no more than 10 years.
More Americans are retiring with a mortgage.
A study by Harvard University’s Joint Center for Housing Studies concluded that 46% of homeowners from ages 65 to 79 are still making mortgage payments. In contrast, three decades ago only 24% of this subset of Americans hadn’t paid off their house.
Happy New Year — and welcome to the new decade! We hope that you had a joyous holiday season surrounded by friends and family.
Formally named the Setting Every Community Up for Retirement Enhancement Act of 2019, the SECURE Act was passed by Congress and could be signed into law very soon. When passed, it will make substantial changes to both retirement plan contribution and distribution requirements in certain situations.
Inheriting an IRA from a loved one can be confusing and costly if you make a mistake.
Here are five things to keep in mind if you inherit IRA assets:
Following a turbulent end to 2018, financial markets are off to a fast start in 2019. The U.S. stock market has recouped its December losses with both large and small company stocks making sizeable gains. Foreign stocks rose over 10% in the first quarter but are still clawing their way back from a lackluster 2018. Quietly, bonds had a stellar quarter (considering the low interest rate environment of the last decade), notching their highest quarterly return since early 2016.
For most Americans, the Roth Individual Retirement Account is an excellent way to save for retirement.
Once the money is deposited into a Roth IRA, it can potentially grow tax-free for many decades. And when retirees eventually tap into these accounts, they won’t owe tax on the withdrawals.
One of the most attractive aspects of the Roth Individual Retirement Account is that you can take withdrawals tax-free. The more the Roth IRA grows over time, the better your eventual tax break.
How much have you saved for retirement for 2017?
There is still time to boost your savings. And at the same time set goals for what you can set aside next year.
While 2017 contributions to workplace plans such as a 401(k) or 403(b) have ended as of December 31, 2017, you can put money into an Individual Retirement Account until April 17, 2018.