What are the most common scams regarding Social Security benefits?

July 7, 2024 No Comments

A: There are a number of common scams that target Social Security benefits. These scams generally involve criminals who impersonate Social Security workers or companies, so that they can obtain Social Security numbers and other personal information. Receiving an Extra Social Security Check One popular

What are the penalties for withdrawing from my Traditional IRA less than a year after acquisition?

July 7, 2024 No Comments

A: Withdrawals from your Traditional IRA will be treated as ordinary income, and if you are under age 59.5 when the distribution occurs, the amount will be subject to an early-withdrawal penalty of 10% (of the amount withdrawn). The amount will be exempted from the

What are qualified retirement plan types?

July 7, 2024 No Comments

A: A qualified retirement plan is simply a plan that meets the requirements set out in Section 401(a) of the U.S. tax code. This does not mean that other types of plans are not available, but the majority of retirement savings programs offered by employers

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

July 7, 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?

July 7, 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?

July 7, 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?

July 7, 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?

July 7, 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

Is my non-qualified Roth IRA distribution subject to taxes or early distribution penalties?

July 7, 2024 No Comments

A: The ordering rules must be applied to determine whether the distribution is subject to income taxes and/or the early distribution penalty. Under these ordering rules, distributions are taken from funding sources in the following order: Regular contributions Roth conversions Earnings Note: Roth conversion amounts

Is the cost-of-living adjustment (COLA) mandatory?

July 7, 2024 No Comments

A: A cost-of-living adjustment, or COLA, is a purchasing power protection mechanism provided to all monthly Social Security and Supplemental Security Income benefits. While a cost-of-living raise for Social Security recipients is technically “mandatory,” it does not mean there will be an actual increase every

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