What are the pros and cons of naming a trust as the beneficiary of a retirement account?

June 30, 2024 No Comments

A: In the financial community, this has been a topic of an ongoing debate between estate planning attorneys and financial advisors. For retirement accounts, investors are given the opportunity to name both primary and contingent beneficiaries – that is, the person or entity who will

What are Social Security Credits for and how can I earn them?

June 30, 2024 No Comments

A: To determine who is eligible for various Social Security benefits, the Social Security Administration (SSA) uses a system of credits that establish whether minimum work requirements have been met. Typically, the number of credits required in order to be eligible for benefits is 40.

What are the requirements that a trust needs to meet to be qualified?

June 30, 2024 No Comments

A: The requirements that a trust must meet to be qualified are as follows: The trust must be a valid trust under state law or would be except for the fact that there is no corpus. The trust must be irrevocable or will, by its

What are some of the features and benefits of SEP IRAs and Roth IRAs?

June 30, 2024 No Comments

A: SEP IRA Established and funded by a business (including a sole proprietorship) Must be established and funded by the employer’s tax filing deadline, including extensions Contribution limit is 25% of compensation or $45,000, whichever is less. For a sole proprietor, the contribution limit

What are the Roth 401(k) contribution limits?

June 30, 2024 No Comments

A: The current contribution limit for a designated Roth 401(k) account for the 2018 fiscal year is $18,500. In addition, account-holders over the age of 50 may make catch-up contributions of up to $6,000, for a potential total annual contribution of $24,500. Catch-up payments are

What are the advantages and disadvantages of getting a 403(b) vs. a Roth IRA?

June 30, 2024 No Comments

A: A 403(b) plan is a retirement account that is offered to public school employees and the personnel of non-profit organizations, as well as some ministers and hospital employees. The 403(b) plan is similar to a 401(k) retirement account. Employees who are eligible for a

What are the steps to applying for a Canada Pension Plan (CPP)?

June 30, 2024 No Comments

A: To apply for the Canada Pension Plan, complete the application online, or print it out and mail it to Service Canada. If you fill it out online, there are two steps to the process. First, complete your application online and submit it electronically. Then,

What are the best ways to use your 401(k) without a penalty?

June 30, 2024 No Comments

A: The best way to use your 401(k) retirement savings account is to take normal distributions after you reach retirement age. In this way, you avoid paying any unnecessary taxes and use your savings for anything you want. However, to use your 401(k) fund before

What are the differences between a Registered Retirement Savings Plan (RRSP) and a Registered Pension Plan (RPP)?

June 30, 2024 No Comments

A: Registered Retirement Savings Plans (RRSP) and Registered Pension Plans (RPP) are both retirement savings plans that are registered with the Canada Customs and Revenue Agency. RRSPs are individual retirement plans, while RPPs are plans established by companies to provide pensions to their employees. Contributions

My company is the trustee of our 401k plan (which has 112 participants). What are the pros and cons of having the company instead of the plan provider/vendor as the trustee?

June 30, 2024 No Comments

A: The answer may vary depending on the plan provider and the provisions of the plan document. For questions relating to a specific issue, the employer should consult with an ERISA attorney, who will be able to make an appropriate recommendation. An ERISA attorney may

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