Receiving Social Security benefits abroad

July 7, 2024 No Comments

A: If you are planning on retiring abroad, you may be concerned about forfeiting your Social Security retirement, disability or survivors’ benefits. However, because the United States has Social Security agreements with many nations throughout the world, this may not be the case. The Social

Should a Canadian citizen who lives and works in the U.S. continue to contribute to a RRSP account?

July 7, 2024 No Comments

A: No, a U.S. resident should not contribute to a RRSP account. RRSP contribution rules allow you to contribute a certain percentage of your earned income, but since your income is not from a Canadian source, you would not be eligible for any tax deductions

The company I am working for said that 401(k) contribution can be based on only straight time pay! The company I previously worked for allowed me to contribute on gross earnings. Has the law changed, or is the current employer wrong?

July 7, 2024 No Comments

A: The regulation (law) that addresses your specific question has not changed. However, both employers may be right. Here’s why: The regulations allow the employer to determine, to a certain extent, what is defined as “eligible compensation/pay” for the purposes of determining contributions to the

The Difference Between a 401(a) and a 401(k)

July 7, 2024 No Comments

A: Both of these savings plans are workplace retirement plans, included in the 401 section of the Internal Revenue Code. The difference between a 401(a) plan and a 401(k) plan is first in the type of employer offering them and then in certain details and provisions. What

Is a Simplified Employee Pension (SEP) IRA tax deductible?

July 7, 2024 No Comments

A: Payments that you make to a Simplified Employee Pension (SEP) IRA are tax deductible. However, there is a maximum limit that you’re allowed to deduct each year. As of 2017, the maximum deduction amount that a business can take for putting money into its

The Differences Between 401(k) and 403(b) Plans

July 7, 2024 No Comments

A: Named after sections 401(k) and 403(b) of the tax code, respectively, both 401(k) plans and 403(b) plans are tax-advantaged retirement vehicles offered by employers. The primary difference between the two is the type of employer sponsoring the plans—401(k) plans are offered by private, for-profit companies,

Is a Thrift Savings Plan (TSP) a qualified retirement plan?

July 7, 2024 No Comments

A: The Federal Employees’ Retirement Security Act of 1986 established the Thrift Savings Plan, or TSP. It is a qualified retirement plan made available to current and retired federal government and agency employees. The Thrift Savings Plan is a defined contribution plan that is quite

Use your 401(k) to purchase a house

July 7, 2024 No Comments

A: As you may already know, you must meet certain requirements, as outlined in the 401(k) plan document, to be considered eligible to receive a distribution from the plan. Your employer or plan administrator will provide you with a list of the requirements. Amounts withdrawn from

Is a treasury bond a good investment for retirement?

July 7, 2024 No Comments

A: Individuals saving toward retirement use a variety of investments to accumulate funds over time, including stocks, bonds and cash accounts. A Treasury bond (T-bond) is a common choice among investors with low risk tolerances or those focused on generating income. Investments in T-bonds pay

What are activities of daily living (ADL)?

July 7, 2024 No Comments

A: Activities of daily living (ADL) refer to daily activities that individuals normally do, unassisted, to take care of themselves. These activities include: bathing, eating, cooking, walking, dressing, house chores, personal hygiene and walking. Usually, healthcare professionals (nurses, nurse’s aides, doctors) measure a person’s well-being

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