Can a variable annuity be rolled into an IRA?

July 7, 2024 No Comments

A: You can roll qualified variable annuities – those established with pre-tax dollars – over into a traditional IRA. Qualified annuities are often set up by employers on behalf of their employees as part of a retirement plan. Non-qualified variable annuities – those established with

Can an individual contribute to both a Roth IRA and a Traditional IRA in the same year?

July 7, 2024 No Comments

A: Yes, you can contribute to both a Roth IRA and a traditional IRA in the same year. The total contribution into both cannot exceed $5,500 for individuals under 50, or $6,500 for those 50 and over. For example, a person 49 or younger can

Are Social Security survivor benefits for children considered taxable income?

July 7, 2024 No Comments

A: Social Security survivor benefits for children are considered taxable income only for the children who are entitled to receive them, even if the checks are made out to a parent or guardian. Most children do not make enough in a year to owe any

Can dividends be paid out monthly?

July 7, 2024 No Comments

A: Although it is more common for dividends to be paid quarterly or annually, some stocks do pay monthly dividends. Dividends: The Basics Public companies pay dividends to their shareholders, typically in cash, as a means of expressing thanks for their continued support. Dividends are

Are spousal Social Security benefits retroactive?

July 7, 2024 No Comments

A: Spousal Social Security benefits are retroactive. These benefits are quite complicated, and anyone in this type of situation is advised to sit down with a financial counselor to review options. Some of the major factors that could impact this decision are the life expectancy

Can I borrow from an IRA without penalty?

July 7, 2024 No Comments

Technically speaking – yes. The 60-day rollover rule applies to all types of IRAs. This 60-day rollover rule allows you to withdraw assets from your IRA and roll over the amount within 60 days. If the amount is rolled over within 60-days, the distribution (withdrawn

A lot of retirement projections seem to assume an 8% rate of return. Is this realistic?

July 7, 2024 No Comments

A: Many financial advisors would feel that an 8% rate of return is too high, and are more likely to work with 4-5% estimated return, depending on the dollar amount that is assumed will be invested.The 8% (or more) rate of return became the norm

Annuities: Present Value Versus Future Value

July 7, 2024 No Comments

A: The present value of an annuity represents the sum that must be invested now to guarantee a desired payment in the future, while the future value of an annuity is the amount to which current investments will grow over time. What Is an Annuity?

Are 401(k) withdrawals considered income?

July 7, 2024 No Comments

A: All 401(k) plan withdrawals are considered income and subject to income tax, including capital gains. When you take a premature distribution – a withdrawal before age 59½ from a 401(k), IRA or any other tax-deferred retirement account or annuity – that withdrawal is also

Are 401ks FDIC insured?

July 7, 2024 No Comments

A: The Federal Deposit Insurance Corporation (FDIC) works as a protector for customers when banks and financial institutions fail. The total limit per person is $250,000, and it is applicable to checking accounts, savings accounts and certificates of deposit (CDs). Mutual funds, stocks, bonds, annuities,

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