Can a person who is retired continue to fund an IRA?

June 30, 2024 No Comments

A: For the purposes of contributing to an IRA, compensation (i.e. earned income) does not include income from a pension, an annuity or Social Security. Generally speaking, you must have earned the income by performing services (i.e. work) or received it as alimony and/or a

Can a simplified employee pension (SEP) IRA be converted to a Roth IRA in the same manner that a Traditional IRA can?

June 30, 2024 No Comments

A: Yes. An SEP IRA can be converted to a Roth IRA. As you may know, an SEP IRA is just a Traditional IRA that receives employer SEP contributions. Once the SEP contributions are made to the account, they immediately assume the identity of regular

Can a spouse who is not named as a beneficiary receive assets from an IRA?

June 30, 2024 No Comments

A: It depends. Generally speaking, the designation of beneficiary form dictates who receives the assets from the individual retirement account (IRA). Therefore, no one else is entitled to receive any share of the IRA unless the named beneficiaries choose to disclaim their portions. However, if

Can a variable annuity be rolled into an IRA?

June 30, 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?

June 30, 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?

June 30, 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?

June 30, 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

401(k) and IRA contribution

June 30, 2024 No Comments

A: If you contribute to your 401(k) account, you may still contribute to a Roth IRA and/or a traditional IRA. Your 401(k) contribution has no effect on your Roth IRA contributions. You only need to make sure you meet the eligibility requirements for funding a

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

June 30, 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

June 30, 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?

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