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

Is an ESOP a qualified retirement plan?

July 7, 2024 No Comments

A: An ESOP, or an Employee Stock Ownership Plan, is a defined contribution plan, which is a particular form of a retirement plan as defined by the IRS. As a qualified stock bonus plan, an ESOP became a qualified retirement plan in 1974 under IRS

Is an IRA a qualified plan?

July 7, 2024 No Comments

A: A qualified plan refers to whether or not an investment plan offered by an employer qualifies for tax breaks under internal revenue service (IRS) guidelines. An individual retirement account (IRA) is not offered (with the exception of SEP and SIMPLE IRAs) by an employer

Is my IRA or Roth IRA FDIC-Insured?

July 7, 2024 No Comments

A: The Federal Deposit Insurance Corporation, or FDIC, is a government-run agency that provides protection against losses if a bank or savings and loan association fails. Created in 1933, the FDIC’s original mission was to offer peace of mind to banking customers after the financial

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

I want to close my IRA account. What percentage will I lose to tax?

July 7, 2024 No Comments

A: You can move the amount by means of a trustee-to-trustee transfer to another IRA, or roll over the amount to your 401(k). You would need to check with your current employer to determine if it will allow the rollover. This way, you will keep

I work for a university, and I have a 403(b) with TIAA-CREF. But TIAA-CREF says I cannot transfer money to another provider. Can they prevent me from transferring my money to a better investment?

July 7, 2024 No Comments

A: It depends. The IRS does permit the transfer of assets between 403(b) providers; however, employers and 403(b) providers are not required to allow such transfers. Generally, the transfer is permitted only if the new 403(b) account (to which the assets are being transferred) is

If a company undergoes an acquisition can an employee withdraw 401(k) funds tax free?

July 7, 2024 No Comments

A: Although the participant may be eligible to withdraw the funds if a plan is terminated as a result of an acquisition or other similar transaction, this does not mean that the 10% penalty will be waived. However, the participant would qualify for an exception

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