What would privatized Social Security mean for Americans?

July 7, 2024 No Comments

A: The current Social Security system in the United States operates in a pay-as-you-go framework; the Social Security taxes paid by today’s workers enter the general fund and are immediately used to pay for current claimants. Privatization would eliminate the pay-as-you-go process. Instead, each taxpayer’s

Will I have to pay taxes on my 401(k) plan if I quit my job?

July 7, 2024 No Comments

A: If you decide to leave the company that holds your 401(k) plan, you have four options for dealing with your funds, and the tax implications depend on which option you choose. These options include: Leave the money with your old plan (if eligible). Move

When am I not required to submit a social security number on my tax return?

July 7, 2024 No Comments

A: When filing your tax return, you are generally required to include the social security numbers of yourself and the individuals for whom you claim as dependents. However, exceptions do apply. ExceptionsChild Born and Died Same YearIf you have a child who died in the

When are Simple IRA contributions due?

July 7, 2024 No Comments

A: According to the IRS, contributions to SIMPLE IRA plans that are taken from an employee’s pay check as a salary reduction are due within 30 days of the month in which the deferred payments were taken. For contributions taken from an employee’s pay in

When are Simplified Employee Pension (SEP) IRA contributions due?

July 7, 2024 No Comments

A: A SEP IRA, also known as a simplified employee pension plan, is an investment vehicle that allows business owners to contribute up to 25% of an employee’s compensation or $52,000 a year, whichever is less, to their employees’ retirement savings plans. This contribution must

When should I take my Canadian Pension Plan distributions?

July 7, 2024 No Comments

A: The Canadian Pension Plan (CPP) is a retirement program from which contributing Canadians may receive payments at the age of 60 or upon a disability. The program, however, does not start immediately paying you upon retirement, disability or at the age of 60 because

When to apply for Social Security retirement benefits

July 7, 2024 No Comments

A: Applications for Social Security benefits can only be processed a maximum of four months before benefits are scheduled to begin. Thus, the earliest you can apply is age 61 and nine months, and you can expect to receive your first payment four months later

Which of the Following Accounts Does ERISA Cover?

July 7, 2024 No Comments

A: A. IRA B. State employee pension plan C. Corporate defined-benefit plan D. Coverdell savings account Answer: C The correct answer is “C.” ERISA covers most employer retirement plans, but public employee plans are exempt from coverage. “A” is not correct because the IRA is

Who bears the investment risk in 401(k) plans?

July 7, 2024 No Comments

A: Who actually bears the investment risk in a pension plan depends on the type of pension plan that is employed. In a broad sense, there are two benefit formulas that will calculate the pension benefits the plan member will receive. In the case of

Who is eligible for Canada Pension Plan benefits?

July 7, 2024 No Comments

A: Nearly all individuals who work inside of Canada are eligible to contribute toward and receive benefits from the Canada Pension Plan, or CPP. The CPP is a deferred income retirement vehicle that has been in place since 1965 when it was introduced as a

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