Search results “Retirement plans required minimum distribution”
RMD Basics (Required Minimum Distributions)- (and a neat idea)
In this video we go through the basics of RMD's. (Required Minimum Distributions) and also an idea
Views: 6728 Carl Ostenson
Required minimum distribution basics
Age 70½ means the beginning of taking your RMD but not the end of your investment planning. Vanguard retirement planning experts Colleen Jaconetti and Maria Bruno define RMDs and discuss some creative ways to reinvest them that can keep your money working for you. All investing is subject to risk, including the possible loss of the money you invest. For more information about Vanguard funds, visit vanguard.com or call 877-662-7447 to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing. When taking withdrawals from an IRA before age 59½, you may have to pay ordinary income tax plus a 10% federal penalty tax. This webcast is for educational purposes only. We recommend that you consult a financial or tax advisor about your individual situation. © 2014 The Vanguard Group, Inc. All rights reserved.
Views: 5825 Vanguard
Making Sense of Required Minimum Distributions
If you own a traditional IRA, 401(k) or other qualified retirement plan, sooner or later you’ll have to deal with Required Minimum Distributions (RMDs) which may impact your overall portfolio. In our webinar, we will discuss: Which distributions do you take first? How much do you have to take out? How much tax liability will your distributions create? How will RMDs impact your Social Security? What investment strategies and asset allocations should you consider? How can you reduce your RMDs in the future?
Required Minimum Distributions on Qualified Retirement Plans  - Right on the Money – Part 4 of 5
Here are some highlighted excerpts from the interview with chartered financial consultant, investment advisor representative and author Mark Roberts: Steve: Okay, now one of those issues you manage is RMDs, Requirement and Distributions. You say that the IRS has a kind of a little secret here, but it’s a big one. Talk about that. Mark: RMD stands for Required Minimal Distributions. It is required we take a minimum withdrawal every year from our retirement plans, our IRAs and 401(k)s, every year starting at 70½ for the rest of our life. There is a formula. It is based on two things, age and size. That's all the IRS cares about is, how old are you and how much do you have in IRAs and 401(k) plans. Based on that, the formula will tell us how much we have to withdraw every year. If we don't withdraw the required amount and pay the income taxes, we will have a 50-percent penalty every year on the amount we were supposed to withdraw and don't. Most people continue to save money in 401(k)s and IRAs because they want tax deduction while they are younger. Let it grow, grow, grow, grow, grow, not pay tax, and then boom, they get hit with taxes later and they don't realize it at a time in life when they have less and less tax deductions. Steve: The last seminar I went to this is still a consumer surprise, that if you do not pull out the required minimum distributions you will have up to a 50-percent tax bill. This is still news to seniors. Mark: I find that baffling. Everybody knows the 59½ rule because we've all been under 59½ and if we take a withdrawal we pay tax and a 10-percent penalty. They don't really pay attention to the 70½ and most people know there's something at 70½, but "No, well I'm not 70½ yet, so I'm not going to worry about it." I try to walk clients through the thought process of, let's just say, playing a card game. If you and I were playing a card game I've never played this card game before in my life, you're going to teach me how to play. Who's likely to win, you or me? You would say, you, but after we play this card game 20, 30 times and we've played it two or three hours worth, now who's likely to win? Maybe you, maybe me. I still see you have the advantage because although we both know the rules, you've been playing them longer. Because you've been playing it longer, you've figured out strategies. Strategy to stay with inside the rules to beat me without cheating. Steve: I do want to avoid the 50-percent penalty. It's punitive. Is there anything I can do before 70 ½ to mitigate this issue? Mark: Oh, gosh yes, and we teach that to people all the time. Financial advisors don't talk about this and then people like us, we butt heads with CPAs because the average CPA wants to teach us to save the most amount of tax this year. I'm trying to help people understand the laws so they can save the most amount of tax over the next 10, 20 years of their life. When you're under 70, I don't care if you're in your 40s, 50s, 60s, working or retired. You want to talk to your financial professional about a process of moving money out of the tax-deferred IRAs and 401(k) plans. Start paying a little tax today and then reinvest it over like into Roth IRAs, something that can compound grow tax-free. A Roth IRA is just simply a tax code. It's not an investment. You can invest a Roth IRA the same way you can invest in a traditional IRA. The idea is, spread out your taxes. Right now think of it is, think of it as a farmer. If I'm a farmer and I have a choice to pay my taxes this year, do I want to pay tax at the beginning of the year on my seed, or pay tax at the end of the year on my harvest, what's the lesser tax to pay? I'd rather pay tax at the beginning of the year on my seed. That's not what people are doing. They're putting money away in IRAs and 401(k)s, building up this big old harvest, where they're going to have a big old required minimum distribution every year for the rest of their life, whether they want it, need it or not. They're going to have to pay a lot of income taxes at a time in life later down the road when they have less tax deductions. Watch the interview with chartered financial consultant, investment advisor representative and author Mark Roberts. Syndicated financial columnist Steve Savant interviews author, popular platform speaker and investment adviser representative Mark Roberts. Right on the Money Show is an hour long financial talk distributed to 280 media outlets, social media networks and financial industry portals. (www.rightonthemoneyshow.com) https://youtu.be/wHHMSe74IYw
Required Minimum Distribution Rules - What You Need To Know
What are the required minimum distribution rules? Keep your traditional IRA up to date and stay on the right side of the IRS by getting your RMD on time! An RMD is a required minimum distribution, which is the amount that you must take out of your traditional IRA if you turned 70 by July 1st this past year. An RMD requirement is only for a traditional IRA, not a Roth. When are required minimum distributions due? According to the required minimum distribution rules, if you turned 70 prior to july 1st, you can wait until april 1st of the next year to distribute your IRA minimum, but you must take another RMD prior to dec 31st of that year. If you have multiple IRA accounts, you can take all your RMD from just one account. Simply figure out and combine your balances, the apply the life expectancy table to find your RMD for that year. If you're confused, give us a call and we can help you calculate your total balance. If you have to calculate a real estate IRA minimum distribution or other illiquid investment, be sure to also contribute money to take your RMD from. It is possible to you can take an in kind required minimum distribution basis, taking a small piece of real estate for example, but it can be difficult to calculate and you must get an appraisal for your real estate. The most important thing to remember about IRA minimum distribution requirements is timeliness; make sure to contact your custodian prior to close of business on December 31st. Take your RMD on time and avoid IRA minimum distribution penalties! Find out more at https://www.sunwesttrust.com/news/required-minimum-distribution-rules.html . For any questions about required minimum distribution rules, you can email us, or call us at 1-800-642-7167!
Views: 8333 sunwestira
Costly Required Minimum Distribution Mistakes
Don't make this costly mistake regarding required minimum distributions. Eric Hamel, CFP® explains this in more detail. If you would like to schedule a free assessment with one of our CFP® professionals, click here: https://purefinancial.com/lp/free-assessment/ Make sure to subscribe to our channel for more helpful tips and stay tuned for the next episode of “Your Money, Your Wealth.” https://www.youtube.com/subscription_center?add_user=PureFinancialCFP Channels & show times: http://yourmoneyyourwealth.com https://purefinancial.com IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor. • Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with their tax advisor or attorney regarding specific situations. • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. • Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. • All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. • Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
How To Calculate Your RMD
This video explains how to calculate you what you must take from your retirement accounts when you reach age 70 1/2.
Views: 8235 colin meeks
Tax Planning for Retirement Plan Required Minimum Distributions
Strategies for minimizing Retirement Distributions Rick Kahler, CFP, resides in Rapid City, South Dakota and is a fee-only financial planner. He is the co-author of "The Financial Wisdom of Ebenezer Scrooge". Learn more at http://www.kahlerfinancial.com
Views: 31 Rick Kahler
How Required Minimum Distributions Can Triple Your Taxes (Part 1)
Required Minimum Distributions (RMDs) are a TAX BOMB that many soon-to-be retirees are ignorant of. You can't afford to be. Your RMDs can be absolutely BRUTAL when it comes to your taxes. RMDs can certainly put you into a higher tax bracket, thus you pay more to the IRS. However, RMDs can also increase your Social Security taxation too. And, yes AND, RMDs can increase your Medicare Part B and D premiums as well! Oh, we're not talking small increases in premiums either. Doesn't take much income to have your Medicare premiums double..and more. In this video, we bring back Bob and Jane, our favorite pre-retiree couple. But now they are only 55 years old. Bob doesn't work. Jane has $400k in her 401k that she is going to stop contributing to. She expects to get 6% annual rate of return. And will not take anything out of it until she is 70 years old. Just watch what happens next. You'll be shocked. I need to recognize Don Pistulka for the spreadsheets he has created and made readily available for the whole world to use. Just a wonderful resource indeed. His website is here... http://pistulka.com/ Other important links: https://www.ssa.gov/pubs/EN-05-10536.pdf https://www.irs.gov/taxtopics/tc751
3 Big Retirement Withdrawal Mistakes
For more information on our WealthVision Financial Plan check out our info page here; http://moneyevolution.com/wealthvision/ For access to the 7 Core Elements of Retirement Planning Video Series and Action Guide Click here. http://moneyevolution.com/7-core-elements-yt/ Today I'm going to talk about Three Big Retirement Plan Withdrawal Mistakes. If you're planning for retirement, you're going to be looking at how you can make a transition from what we call the retirement accumulation phase, when you've been saving and investing money for your retirement, into the retirement withdrawal phase. You're going to take some of that money that you saved, and you're going to start distributing that money back to you, by starting to take some withdrawals. There's three big mistakes that we see people make here. Mistake number one is probably the most common one that we see, and it's Waiting Too Long to Begin Taking Withdrawals. And this mistake can actually compound into a couple of other little mistakes that actually can cost you a lot of money. People will often begin taking their Social Security benefits as early as they can at age 62, and not only does this prevent them from getting a bigger Social Security check and kind of maximizing that, but it also means that they're delaying taking their retirement plan withdrawals, and what that does is compound itself down the road, because as many of you probably know, at 70 1/2, the IRS is going to mandate that you're going to start taking some withdrawals from those retirement accounts. It's called the Required Minimum Distribution Rules. And what that might do is push you up into a higher tax bracket at that time, and on top of that, it can also affect your Medicare premiums as well, because your Medicare premiums are tied to the level of income that you make. So the more money you make, the more you pay for Medicare. One of the things that we look for, though, as a way to kind of get around this mistake is to really map out some of those cash flows. One of the things that we identified is that by taking some retirement plan withdrawals early on in retirement we can take advantage of what we call low tax years. If you're waiting to take Social Security, for example, or maybe your pension doesn't kick in right away, you might have few years early on in your retirement where you're in a very low tax bracket. By taking some of those retirement plan withdrawals early, you can take advantage of those low tax years and at the same time, help you get a bigger Social Security check down the road. It could also take some pressure off of some of those required minimum distributions. Maybe some of those won't be so high and pushing you up into those higher tax brackets. We can also look at doing some Roth conversions too as a way to take advantage of some of those low tax years. The second mistake is Taking Your Distributions At Too High Of A Rate. What I mean by this is that there are some schools of thought out there. Probably the most prominent of these is something called the four percent rule. This was created by financial planner, William Bengen back in the 90s, and he did a lot of math, studied some probability and statistics, and said that if you limit your retirement plan withdrawals to no more than four percent of your entire portfolio each year, you should have a pretty good chance that your money is going to last you throughout the rest of your lifetime. If we think about the four percent as kind of our withdrawal rate that we should be targeting, consider that if we go up to five or six percent, it may not seem like a big difference, but looking at the math, your probability of running out of money goes up pretty high once you start getting up to five, and especially once you get up to six percent or more. The last mistake is Not Understanding Your Cash Flow Needs. One of the things that we want to understand are some of the variabilities that you might be experiencing with your income and your expenses in retirement. Here we talk about the sequencing of returns. That's what William Bengen did when he did his research on the four percent rule. If we're earning, let’s say, a six or seven percent average return over time, because of the sequencing of returns, we could end up with a bad string of years where we're not earning that average or we have down markets, what is the impact of that on our long-term ability to sustain our retirement withdrawals? One of the ways we can get around this is to use a bucket strategy. What that means is we keep one to two years worth of liquid cash reserves in an account that's very safe, very accessible, so that as you need money to supplement your retirement, we don’t have to take it out of some of the riskier investments that might be in the stock or the bond market. (continued on blog)
Views: 7082 Money Evolution
Tax Planning: Retirement Plan Required Minimum Distributions
Retirement plan required distributions can have significant tax implications. Frazier & Deeter Tax Partner Kelly Garrison discusses some of the considerations.
Views: 55 Frazier Deeter
How do the required minimum distribution rules apply during the life of the participant?
A detailed discussion of lifetime required minimum distributions both with individual accounts and with annuities. We learn specifically how to calculate RMDs during the life of the participant.
Views: 563 NYLCRI
How to Withdraw from 401k after age 60 - How to Withdraw from 401ks after Age 60
What are the ways on how to withdraw from 401k after age 60 – How to withdraw from 401ks after age 60? 1-800-566-1002 http://www.RetireSharp.com . What are the best ways how to withdraw from 401k after age 60 for retirement and learn how you can avoid the most common mistakes that individuals have made when looking how to withdraw from 401k after age 60. 401K Rollover Or 401K Withdrawal? What's the difference between a 401k withdrawal and a 401k rollover anyways? Can you do a rollover without doing a withdrawal? Read to find out how. Closer to the last stages of your retirement, you'll need to understand the distribution process. You maybe changing careers or retiring soon and in need of income. Regardless of the need, there's some standard steps that you'll need to adhere to. If not done correctly, you may face adverse tax consequences. While most employers no longer offer pensions, many still offer a 401k retirement plan. With disciplined investing, you may have saved up a substantial nest egg. If you've separated from your job or severed from service, it's very important to handle everything properly. It's very crucial you understand the 401k withdraw process. Foremost, when withdrawing from a 401k or any other qualified plan, there can be consequences. If you are 59 1/2 or older, you can take withdrawals from your 401k retirement without any penalty. In all cases that early retirement withdrawal prior to 59 1/2 can cost you an extra 10% tax. This is in addition to you being taxed at your current income rate. At age 70 1/2, it is mandatory to take withdrawals call RMD or required minimum distribution. These penalties can be avoided by doing what's called a 401k rollover. Rolling your 401k maybe the best option for deferring taxation. Doing a rollover allows you to move your funds from your current 401k to another account. This is very commonly done by moving the funds to an IRA or individual retirement account. By making a 401k rollover, you often have more control of your account than leaving it at your previous employer. This is by far the most preferred method than having an old employer keep the funds. The old employer can charge fees as well for doing so. A lump sum distribution is also an option when making a 401k withdrawal. Lets say you cash out the old 401k. Again if done prior to age 59 1/2, there is the 10% penalty. Additionally, employers will require you to withhold 20% to cover income taxes. There is one exception to this rule and it would applies to using the withdrawals for a 1st time home purchase. The limit to that exception is up to $10,000 out of an IRA or 401k for sole use of a 1st time home buyer. Another way to avoid taxation, is to do a direct transfer. This is done by transferring the funds directly from your old employer to the new IRA account you set up or new 401k from a new employer. If the distribution check was made out to you and mailed to you; then you have 60 days to complete a transfer to another institution. The direct transfer is the preferred way since it does not require a deadline to meet. Either way would work for a 401k withdrawal. Feel free to subscribe to our YouTube channel and receive instant access on different retirement related topics. Thanks for watching! Related Search terms: how to withdraw from 401k after age 60 annuities how to withdraw from 401k after age 60 income how to withdraw from 401k after age 60 explained how to withdraw from 401k after age 60 reviews how to withdraw from 401k after age 60 review What is the best fixed indexed how to withdraw from 401k after age 60 vs the top immediate income how to withdraw from 401k after age 60 for retirement https://www.youtube.com/watch?v=gR8KSYt5cz4
Views: 25796 retiresharp
Required Minimum Distribution (RMD) Tables
Required Minimum Distributions(RMDs) are mandated for ANYONE who has a tax deferred retirement account, be it a 401k, 403B, IRA, TSP etc. If you neglect to take your RMDs you will be hit with a 50% penalty on what you neglected to take out and you STILL have to pay tax on the RMD amount! So, you don't want to do this. However, understanding RMDs is a bit of a challenge. In the IRS Publication 590 there are a couple different tables to choose from. Which one do you use? In this video I show you exactly the tables most people are going to need in order to calculate their RMDs. And I also show you HOW to do the calculation as well. Just remember, if you are taking an RMD you most likely are going to need to use Table III. If you are a beneficiary of an IRA, you are going to want to use Table 1. If you inherit an account, you'll want to use Table 1. \ Now, table II is confusing because it's for spouses who are the sole beneficiary's of an account who are more than 10 years younger than the deceased. In my experience few spouses will use this table simply because it's typically much more advantageous to simply roll the IRA over to your own. However, if you are the sole spouse, 10 years younger than the deceased AND under 59.5 I caution you before simply rolling the account over to one in your name. Death is one of the few allowable distribution options that does not have a 10% penalty. Thus if you roll the IRA over to your own, you sacrifice the ability to take distributions penalty free if you are under 59.5. (Yes it's confusing as heck. I'll do another video on this as a standalone topic.) Finally, be advised, if your surviving spouse is of a similar age to you and inherits your IRA he/she will still have similar Required Minimum Distributions BUT he/she will not have the benefit of your standard deduction and thus will pay more in tax on that same RMD. It's a nasty situation. But one you can avoid by taking MORE than the Required Minimum to fully use your two Standard Deductions while you both are alive. As always visit www.heritagewealthplanning.com for more financial guidance. ================================= If you like what you see, a thumbs up helps A LOT. So, give me a thumbs up, please! Don't forget to SUBSCRIBE by clicking here: https://www.youtube.com/channel/UCSEzy4i9xrKPoaU9z0_XbmA?sub_confirmation=1 GET MY BOOK: Strategic Money Planning: 8 Easy Ways To Put Your House In Order It's FREE if you're a Kindle Unlimited Subscriber! https://amzn.to/2wKGi50 GET ALL MY LATEST BLOGPOSTS: http://heritagewealthplanning.com/blog/ PODCAST: https://itunes.apple.com/us/podcast/josh-scandlen-podcast/id1368065459?mt=2 LET'S SOCIALIZE! Facebook: http://Facebook.com/heritagewealthplanning Linkedin: https://www.linkedin.com/in/joshscandlen/ Quora: https://www.quora.com/profile/Josh-Scandlen Google +: https://plus.google.com/u/1/108893802372783791910
How to Avoid RMD's (Required Minimum Distributions)
Visit us at our website http://www.sdretirementplans.com/ or feel free to give us a call at (866) 639-0066 to speak to Rick Pendykoski today and learn how you can stop leaving money on the table! The April after you turn 70 and a half, if you have a self directed or traditional IRA the government will take out the taxes you owe from your IRA called Required Minimum Distribution. RMD's are usually around 4% the first year. However if you invest your money in a Roth IRA (funded with money after tax dollars) your harvest becomes free after you turn 59 and a half. Required Minimum Distributions (RMD's) do not apply to Roth IRA's. Avoid RMD's (required minimum distributions) with what we offer! By visit giving us a call, visiting our office, or google plus page: -https://plus.google.com/+Sdretirementplans/ -718 N 164th Drive, Goodyear Arizona 85338 -(866) 639-0066
Understanding Required Minimum Distribution [RMD] (SafeMoneyAustin.com)
Cal Burgess, Founder of SafeMoneyAustin.com, and President of Retirement Servicing Group. Discussing the importance of RMD (Required Minimum Distribution) with respect to withdrawals and obligations to the IRS.
Views: 124 Cal Burgess
Planning For Retirement:  Required Minimum Distributions
Craig and Jennifer Moser discuss Required Minimum Distributions (RMDs).
Annuities in Qualified Plans - Taking Required Minimum Distributions
IRA Annuities can not be deferred forever. At age 70 1/2 the IRS mandates that you must take a Required Minimum Distribution. With this forced withdrawal and the low interest rate environment that we are currently in, it will be difficult for anyone to maintain their original values. IRA's can have a variety of investments in them, one of that is becoming increasingly popular is the fixed annuity or variable annuity with a guaranteed lifetime income rider or death benefit guarantee. An Annuity can provide the most competitive growth and protection for an IRA, especially when taking RMD's. This presentation focuses on a strategy to preserve principal while taking out the appropriate RMD amount. Fixed Annuities with guarantees require a special calculation, but when structured properly, can be the most effective way to preserve wealth.
Views: 1931 BrokersAlliance
Required Minimum Distributions in Retirement - Steve Savant's Money, the Name of the Game
Required Minimum Distribution are mandatory at age 70 1/2 for all qualified plans. This new QLAC (Qualified Longevity Annuity Contract) product allows a deferral of distributions up to 25% of qualified plan holdings not to exceed $125,000 per retiree to age 85. This new regulation could dramatically change your retirement planning and may save retirees tax dollars by delaying their require minimum distributions. The deferral aspect on accumulations may be dramatic, especially if the retiree lives past life expectancy. Syndicated financial columnist and talk show host Steve Savant interviews annuity product expert Mike McGlothlin on the impact of qualified longevity annuity contracts. http://youtu.be/ajrLHyEkqL0
Views: 1992 Ash Brokerage
How Are Required Minimum Distributions Calculated?
Jim demonstrates our retirement account planning software. Find out how the IRS calculates your RMDs and what those distributions mean for your IRAs and Roth IRAs. My next workshop is Saturday October 29th at the Pittsburgh Golf Club. Click here to learn more! http://iraseminar.com/ Required Minimum Distribution, RMD, IRA, Roth, IRS, Retirement Planning, Retirement Accounts, Retirement, Roth IRA
Views: 317 retiresecure
Retirement Plan Solutions For 70+ Workers !
If you’re still working in your 70s, you’re probably trying to seal a crack in your nest egg, or you just don’t want to retire. Either way, you have some options to consider when it comes to your savings. Once you turn 70 ½, you’re no longer eligible to contribute to a traditional IRA, and you must begin taking required minimum distributions. But you can contribute to a Roth IRA, which has no RMDs. Regardless of your age, you can also contribute to your employer’s traditional 401(k) plan and you do not face RMDs as long as you own no more than 5% of the business. You can also put your salary deferral into a Roth 401(k). Like a traditional 401(k), RMDs from a Roth 401(k) are mandatory once you leave the business, or if you own more than 5% of it. Many 70-plus workers are self-employed, so the 5% rule should not be overlooked. Most people who are working in their 70s have multiple IRAs and other retirement plans from which they’re forced to take RMDs each year. But if they own less than 5% of the business and the plan administrator allows it, they can roll over existing IRAs and retirement plans into the current employer’s plan, and free themselves from RMDs. Some states that impose an income tax provide better tax treatment to people who contribute to, and take distributions from, IRAs and other plans. State tax filters exist to encourage residents to remain where they are, instead of moving to states that impose no income tax, like Florida or Texas. Read more: Retirement Plan Solutions For 70+ Workers - Video | Investopedia http://www.investopedia.com/video/play/retirement-plan-solutions-70-workers/#ixzz3tHoqG7g3 Follow us: Investopedia on Facebook
Views: 244 Investopedia
Required Minimum Distribution for IRA's. Learn the Rules!
The facts about the Required Minimum Distribution for IRA's. What is RMD? When do I need to take the Required Minimum Distribution? How much will I take as my Required Minimum Distribution from my IRA's? For more information; Link to the related blog post - http://wp.me/p1TqAR-Bv Blog - http://BradRosley.com If there is a topic you would like to know more about, or a question needing answers, please leave us a message or comment. Thank You!
Views: 174 Brad Rosley
Required Minimum Distributions (RMD)
I have an IRA and a 401(k) plan and I am 70 1/2 years old. Can a distribution from my 401(k) plan satisfy all my RMD's that I am required to take for the year? www.resourcecenterinc.com Investing involves risk, including the potential loss of principal. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC, (AEWM). AEWM and The Resource Center are not affiliated companies.
Views: 370 The Resource Center
Managing Required Minimum Distributions - Steve Savant’s Money, the Name of the Game – Part 3 of 5
Sub Headline: RMDs Can Be Modified to Save on Taxes in Retirement Synopsis: At the age of 70½ you must take RMDs based on your total qualified plan monies and the IRS formula calculation based on your age. All RMDs are taxed as ordinary income and are includable in the provisional income test for taxation of Social Security benefits. Watch part 3 Managing Required Minimum Distributions from the series Retirement Tips for 2018 with syndicated financial columnist and talk show host Steve Savant. Content: During your working life you mayhave participated in several employer plans and opened a number of IRAs. Knowing where those accounts are and what they’re worth takes on even greater urgency as you turn 701⁄2 and must begin required minimum distributions (RMDs) from tax-deferred accounts. (Distribution is the official term for what are more commonly known as withdrawals that you take from these plans.) Consolidating your IRA accounts with a single custodian may be a smart move. It may save you money if you’re paying annual account maintenance fees to different custodians. More important, it means that all the information you need on your account values and the way those accounts are invested is contained in one consolidated statement. What consolidation doesn’t meanis that all the IRAs are collapsed intoa single account. In fact, you can’t combine a tax-free Roth IRA and a tax-deferred IRA into a single account unless you convert everything to Roth status. Rollover IRAs are generally held separately from IRAs to whom you’ve made annual contributions. And, if you’ve made both deductible and nondeductible IRA contributions, you’ll want to be sure to keep records of the amounts in each category since you’ll need them to figure the income tax you owe. People over 80 are the fastest growing age group in the United States, a trend that the Bureau of the Census expects to continue for the next 40 years. One consequence of this demographic shift is increased interest in the ways retirement savers may be able to avoid running short of cash as they live into their eighties and nineties. One relatively new long-term planning tool is an insurance company product known as a longevity annuity. These annuities resemble pension annuities from an employer’s defined benefit plan or the fixed immediate annuities that you might purchase when you retire. The insurance company, in return for a lump-sum payment, promises to pay income for your lifetime. The difference is that the income doesn’t start right away, or within a year of purchase, as it does with a pension or an immediate annuity. Rather, the starting date is a number of years in the future, based on the age you select. It just can’t be older than 85. Contributions from the books Managing Retirement Income and Guide to Understanding Annuities in this press release are used with permission from Light Bulb Press. Syndicated financial columnist, talk show host and popular platform speaker Steve Savant features Retirement Tips for 2018 with Ted Meyer. Steve Savant’s Money, the Name of the Game is an hour-long financial talk show for financial professionals distributed online in 5 ten-minute video press releases Monday through Friday through Trans World News 280 media outlets, social media networks and industry portals. (www.lifesizesolutions.com) https://youtu.be/EfBZEzwbVXk
Views: 1538 Steve Savant
Required Minimum Distributions (RMD's) for IRA's & 401k's
Required Minimum Distributions (RMD's) for IRA's & 401k's Matt Burklund, from Cornerstone Financial Services, LLC and Douglas Nickson, from Brooks Clark LTD, explain RMD’s (Required Minimum Distributions) IRA’s and 401k’s. If you have any questions please contact us at: Matt Burklund Cornerstone Financial Services 425-256-3105 mburklund@mycstone.com www.mycstone.com Douglas Nickson Brooks Clark Ltd. Bellevue, WA 98006 (425) 649-1925 dnickson@brookstoneadvisor.com www.brooksclarkltd.com Required Minimum Distributions (RMD's) for IRA's & 401k's
Views: 538 Make It Last
Exceptions For Taking Required Minimum Distributions
Learn when you are required to pull money from your retirement accounts and find out how to avoid taking the required minimum distribution without paying any penalties. 0:01“If you’re still working and still contributing toward an active 401(k) plan, you do not have to take a required minimum distribution” 0:09 “A required minimum distribution is a mandate by law. Once you reach a certain age, you have to start taking distributions from your retirement account…Why? So the IRS gets your tax money!” 0:20 “If you are still working, you’re still an active participant in your 401(k) plan, you do not have to take a required minimum distribution until April 1st, the year after you retire or separate from service” Aired: 2-07-15 If you live in southern California and would like to schedule a free assessment with one of our CFP® professionals, click here: https://purefinancial.com/lp/free-assessment/ Make sure to subscribe to our channel for more helpful tips and stay tuned for the next episode of “Your Money, Your Wealth.” Channels & show times: http://yourmoneyyourwealth.com http://purefinancial.com Season 2 Episode 6 Aired: 2/7/15 IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor. • Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with their tax advisor or attorney regarding specific situations. • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. • Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. • All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. • Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
RMD's Required Minimum Distributions from your IRA's
This video is about Taking RMD's - Required Minimum Distributions from your IRA's
Required Minimum Distributions RMD
RMD is required for some retirement accounts. For information specific to your situation visit the IRS website or speak with an accountant or financial planner.
Views: 199 PlanVestor
Topic 413   Rollovers from Retirement Plans (Roth IRA & Tradition IRA)
Please watch: "Types of Matrix " https://www.youtube.com/watch?v=FBH4X6HXwUs --~-- A rollover occurs when you withdraw cash or other assets from one eligible retirement plan and, contribute all or part of it, within 60 days, to another eligible retirement plan. This rollover transaction isn't taxable, unless, the rollover is to a Roth IRA, but, it is reportable on your federal tax return. You must include the taxable amount of a distribution that you don't roll over, in income in the year of the distribution. Certain distributions from an eligible retirement plan can't be rolled over, which include. Generally, the nontaxable part of a distribution, such as your after-tax contributions to a retirement plan, a distribution that's one of a series of payments made for your life or, life expectancy, or the joint lives or, joint life expectancies of you and your beneficiary, or, made for a specified period of 10 years or more, a required minimum distribution, a hardship distribution, dividends paid on employer securities, or the cost of life insurance coverage. Other exclusions exist for certain loans and corrective distributions. If a plan pays you an eligible rollover distribution, you have 60 days from the date you receive it to roll it over to, another eligible retirement plan. If you've missed the 60-day deadline, you may still be able to complete a rollover by self-certifying that, you qualify for a waiver of the 60-day requirement. For details, see Revenue Procedure 2016-47. You can only make one rollover from an IRA to another or, the same IRA in any one-year period, regardless of the number of IRAs you own. A trustee-to-trustee transfer isn't a rollover and, isn't affected by this rule. This rule also doesn't apply to you if, you convert a traditional IRA to Roth IRA. Any taxable eligible rollover distribution paid to you from an employer-sponsored retirement plan is subject to a mandatory income tax withholding of 20%, even if you intend to roll it over later. If you do roll it over, and want to defer tax on the entire taxable portion, you'll have to add funds from other sources equal to the amount withheld. You can choose instead a direct rollover, in which, you have the payer transfer a distribution directly to another eligible retirement plan including an, IRA. The 20% mandatory withholding doesn't apply in a direct rollover. If you're under age 59½ at the time of the distribution, any taxable portion not rolled over, may be subject to an additional 10% tax on early distributions unless, an exception applies. For a list of exceptions, refer to Topic 558. Certain distributions from a SIMPLE I R A will be subject to an additional 25% tax instead of the additional 10% tax. For more information on SIMPLE IRAs, refer to Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans) on IRS website. For further information about rollovers and transfers, refer to Publication 575, Pension and Annuity Income on IRS website. Video by SSK Advisory Website : www.sskadvisory.com Check out our knowledge page on http://www.siddharthkadakia.com/ Subscribe to us YouTube on https://www.youtube.com/channel/UCAnT... Like us on Facebook at https://www.facebook.com/SSKAdvisory Follow us on Twitter at https://twitter.com/AdvisorySsk Read our blogs on http://ssk-advisory.blogspot.com/ Contact us on +91 9987903701
Views: 46 Knowledge Platter
RMD Calculations
How are Required Minimum distributions calculated? Heather Kiely discusses the three tables used by the IRS to calculate how much to take from your retirement accounts.
Views: 1077 Millionaire Corner
Required minimum distribution from your retirement plan
Our Guest Dennis Blitz of the IRA Club shares the importance of understanding the importance of having an appropriate distribution plan in place for your long term retirement goals.
IRA Required Minimum Distributions | WV Financial Planner
IRA Required minimum distributions. John D Williams, CFP and Senior Advisor at Ironwood Wealth Management in Teays Valley, WV discusses important numbers to know about Social Security. http://www.smartfinancialfuture.com/ http://www.ironwood-wealth.com/
Views: 2841 Ironwood Wealth
Required Minimum Distributions
Are your plan procedures up-to-date on required minimum distributions (RMD)? Watch this video to gain more information on the process to request an RMD, who must take an RMD, and when must RMDs be taken.
What is RMD(Required Minimum Distributions)? RMD란 무엇인가?
Sunny Sky Lee's Mr. & Mrs. Millionaire episode 12 Required Minimum Distributions (RMDs) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age or, if later, the year in which he or she retires. Sunny Sky Lee shows how to avoid unnecessary penalties associated with this RMD. 전통 IRA나 401(k)와 같은 직장 은퇴플랜 오너라면 RMD를 기억해야 한다. 나이 70세 반부터 시작하는 RMD, 만약 제때 안찾으면 50퍼센트 벌금이 처들어 간다?
Views: 408 GoodLifeFinancial
Social Security Age 62, 66, 70 - Medicare Age Start - IRA Age 70 Mandatory Withdrawal (IRA RMD)
Here are the 7 ages you should know for your retirement and the impact these milestones have on your retirement. Learn the 8 Steps to Organize & Optimize Your Financial Life: http://bit.ly/OrganizeAndOptimize. Scott Weiss is a Fee-Only Certified Financial Planner. Subscribe to my channel: http://bit.ly/scottweisscfp ******************************************** Learn more about working with Scott at Weiss Financial Group Here: http://www.weiss-financial.com ******************************************** Subscribe to my blog: http://www.mahopacmoney.com ******************************************** Get Social -------------------------------- LinkedIn: https://www.linkedin.com/in/scottgweiss Facebook: https://www.facebook.com/WeissFinancialGroup Twitter: https://twitter.com/_scottgweiss ******************************************** Video Notes: ---------------------- AGE 55 Can Make Withdrawals Without 10% Penalty if Retired At age 55 you can withdraw from your 401(k) or 403(b) plan without the 10% penalty if you retire or get fired. Also, if your employer offers a pension you may be eligible for full retirement benefits, if you meet the plan requirements. AGE 59 1/2 Can Make Withdrawals Without 10% Penalty This is an important age to remember. Once you turn 59 ½ you can withdraw money from IRA’s and deferred annuities without paying the 10% penalty for early withdrawal. AGE 62 Can Start Reduced Social Security Benefits This is another big year. At age 62 you can start receiving Social Security benefits. However, keep in mind your benefits will be reduced since you will not have reached full retirement age. The other thing is that at age 62 you may be eligible for full pension benefits if applicable to your situation. AGE 65 Qualify for Medicare Benefits This is when you qualify for medicare benefits. Also, with most pension plans you become eligible for your full benefits. AGES 66 & 67 Eligible for Full Social Security Benefits Ok, I have two ages here. But, they are pretty much for the same thing so I lumped them together. At age 66 you become eligible for full social security benefits, if you were born between 1943-1954. Everyone born after 1954 follows this table: AGE 70 Your Social Security Benefits Max Out Once you hit 70 you should start collecting your social security benefits if you haven’t already done so because your benefits will be maxed out. Waiting to collect benefits until age 70 can actually be a great strategy if you are trying to max out social security benefits or are concerned about longevity. AGE 70 1/2 Must Start Your Required Minimum Distributions (RMD’s) Finally, age 70 ½ . When you turn 70 ½ you will be required to start withdrawing specified amounts from your 401(k)’s and IRAs. This is called your Required Minimum Distribution or RMD for short. You must begin these withdrawals once your turn 70 ½ but you actually have until April 1st of the year following the year you actually turn age 70 1/2 . I know, confusing right? Let me give you an example. Let’s say you turn 70 ½ in January 2016, you will need to take your RMD by April 1st, of 2017. Now, you can take it in 2016 but you don’t have to. Going forward, every year after your first RMD you will be required to take the distribution buy December 31st. That’s a lot to remember so check the show notes for all the details. Source: --------------- 1. Planning Retirement Income (https://www.amazon.com/Planning-Retirement-Income-Kenneth-Morris-ebook/dp/B005BGBVNI/ref=sr_1_1?ie=UTF8&qid=1479079470&sr=8-1&keywords=planning+retirement+income) Disclosure: ------------------- Weiss Financial Group is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities product, service, or investment strategy. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser, tax professional, or attorney before implementing any strategy or recommendation discussed herein. Insurance products and services are offered through individually licensed and appointed agents in all applicable jurisdictions. The advisers at Weiss Financial Group are not attorneys of a law firm but can provide guidance to the client’s other professionals. Leave me a comment to ask any question or contact me through my website if you'd like to see if I can help you.
Views: 26575 Scott Weiss, CFP
Understanding Required Minimum Distributions
Financial Adviser Richard Sturm discusses the importance of taking your Required Minimum Distribution (RMD) and the potentially severe penalties for failing to do so. Have questions about your own RMD? Email Richard at: Richard@SturmFinancial.com or call our office at (800) 236-9549. Want to learn more about Sturm Financial? Click here: www.SturmFinancial.com
Views: 109 SturmFinancial
How to Avoid RMDs Within Your 401K
Visit us at our website http://www.sdretirementplans.com/ or feel free to give us a call at (866) 639-0066 to speak to Rick Pendykoski today and learn how you can stop leaving money on the table! Since 2010 Roth conversions within a 401k has been allowed with no income limitations. Let's walk through a scenario...You have $100,000 in your traditional 401k and want to convert it to a Roth IRA. You are rolling tax free but now your 401k is subject to RMD's, even if it's a Roth 401k. You are able to avoid the Required Minimum Distribution by transitioning to a ROTH IRA. Click here to learn more about why you can avoid RMD's with a ROTH IRA: https://www.youtube.com/watch?v=EGwUHXe8XeA Avoid RMD's (Required Minimum Distributions) by speaking to us and learning what we uniquely offer our clients! By visit giving us a call, visiting our office, or google plus page: -https://plus.google.com/+Sdretirementplans/ -718 N 164th Drive, Goodyear Arizona 85338 -(866) 639-0066
When must I start taking the required minimum distribution under my IRA
Generally, you must start taking required minimum distributions (also known as RMDs) by April 1 following the year you turn 70 ½. Remember: if you received an Inherited IRA from a person who has not starting taking RMD withdrawals, you must start taking the first withdrawal by December 31 of the year after the owner dies. There are special rules for a spouse named as a beneficiary and in many cases, you will want to take advantage of the spousal rollover provisions. Due to the heavy tax for missing the start date, it is important that you understand these rules and, if necessary, talk to your trusted advisors for information. Learn more at https://heritagelawaz.com/services/ira-retirement-planning/ or call us at 520-529-4000.
Required Minimum Distributions
Starting at age 70people with money in qualified retirement accounts (Traditional IRA, 401(k), etc.) have to start withdrawing and paying taxes on required minimum distributions (RMDs) from these accounts based on life expectancy. In this video, Adriane Berg, founder of Generation Bold and author of Bottom Line’s Aging for Beginners blog, offers three ways to minimize the RMD and thus pay less tax. The first of these strategies is to convert some of the money in retirement accounts to a Roth IRA, which has no minimum distribution. The second is to open a special account called a QLAC, which allows you to set aside up to $125,000 and not pay taxes on it until age 85. The third strategy is called a three-pay strategy, which allows you to borrow funds for tax prepayment from an insurance company. All three options offer the opportunity to reduce the amount you will pay in taxes, so it is worth consulting a financial professional or doing the research to determine which might be right for you.
Views: 63 Bottom Line Inc
Can I defer taking my required minimum distributions?
As seen on "Skills To Pay The Bills", Freeman teaches about required minimum distributions (RMD) and answers the question about being able to defer taking RMDs. Visit my website JustAskFreeman.com for more useful tips on how to get the most from your retirement planning & Social Security benefits. VA | MD | DC . Also, download my free “SAFE MONEY KIT” to get the most from your retirement dollars. Tel: 1-866-471-7233
Views: 27 Freeman Owen
RMD Tax Rules : Life & Retirement Planning
Subscribe Now: http://www.youtube.com/subscription_center?add_user=Ehowfinance Watch More: http://www.youtube.com/Ehowfinance RMD taxes have some very important rules associated with them that you're going to need to know. Learn about RMD tax rules with help from the founder of Wealth Financial Partners in this free video clip. Expert: Walter Pardo Contact: wealthfinancialpartners.com/about.php Bio: Walter Pardo is the founder and CEO of Wealth Financial Partners, LLC. Filmmaker: Annette Heredia Series Description: It is never too early to start planning for your retirement years and beyond. Find out about the things you need to keep in mind during life and retirement planning with help from the founder of Wealth Financial Partners in this free video series.
Views: 165 ehowfinance
How Required Minimum Distributions Can Triple Your Taxes (Part 2)
In part two of our Required Minimum Distribution video I show you the HUGE tax increase that Jane is facing with upon becoming a widow. Not only do her income taxes (and brackets) increase dramatically but the tax on her Social Security does as well PLUS she now will pay more than double premiums on Medicare Part B and D. It gets worse too folks. The longer she lives, the larger her RMDs will be and the larger ALL three of those taxes will be as well. The funny thing is that Jane actually is living on LESS income than when Bob was alive and yet is paying much more in tax! Again, it's not just the tax rates and taxable income you need to be considering. It's the tax on your Social Security benefits PLUS the increase in Medicare premiums as well. Unfortunately, now the only way Jane can avoid these increases in tax is to give her RMDs to charity. There is no other way. Should have done tax planning in her 50s, which is what I call the "Golden Years of Tax Planning." I'll post videos of some strategies on that topic soon. So, SUBSCRIBE! Once again thanks goes out to Don Pistulka at Pistulka.com for his wonderful spreadsheets! Other important links: https://www.ssa.gov/pubs/EN-05-10536.pdf https://www.irs.gov/taxtopics/tc751 ================================= If you like what you see, a thumbs up helps A LOT. So, give me a thumbs up, please! Don't forget to SUBSCRIBE by clicking here: https://www.youtube.com/channel/UCSEzy4i9xrKPoaU9z0_XbmA?sub_confirmation=1 GET MY BOOK: Strategic Money Planning: 8 Easy Ways To Put Your House In Order It's FREE if you're a Kindle Unlimited Subscriber! https://amzn.to/2wKGi50 GET ALL MY LATEST BLOGPOSTS: http://heritagewealthplanning.com/blog/ PODCAST: https://itunes.apple.com/us/podcast/josh-scandlen-podcast/id1368065459?mt=2 LET'S SOCIALIZE! Facebook: http://Facebook.com/heritagewealthplanning Linkedin: https://www.linkedin.com/in/joshscandlen/ Quora: https://www.quora.com/profile/Josh-Scandlen Google +: https://plus.google.com/u/1/108893802372783791910
MDT Agency - Required Minimum Distributions
Can your Tax Free Retirement plan avoid required minimum distributions? Yes. As we all know Required Minimum Distributions, better know as RMD’s are required at 70.5 on any qualified retirement plan. Our product avoids having to taking Required Minimum Distributions when you use our Tax Free Alternative Plan. Michael D. Thomas from MDT Agency is here to answer all your questions about retiring Tax Free. Benefits possible with Tax Free Alternative Retirement Savings: • Receive a Lifetime of TAX FREE Income • Always have IMMEDIATE Tax Free Liquidity • Retirement Account Acts as Your Own Personal Bank • No Out of Pocket Expenses • No Required Minimum Distributions • Keep more money in your pocket and out of Uncle Sam’s Pocket • Control your Assets and your future Income • Avoid Market Risk while achieving significant GAINS Michael has over 45 years in the financial services industry. Michael is licensed and maintains offices across the United States. Specializing in Tax Free Retirement income for those with above average income who desire zero losses and succession benefits. Michael has a passion for free enterprise and helping find the perfect solution for every opportunity. Michael takes the time to meet with you to discuss your specific desires and needs for retirement. He is like an old doctor making house calls. Coming to you and spending time understanding your goals he is able to create financial solutions that afford you the financial freedom you deserve. Visit www.MDTagency.com for more information or to schedule a one-on-one appointment to discuss your retirement plans.
Views: 8 Mike Thomas
How to Calculate Your RMD (Required Minimum Distribution) for 2016!
Gannon Wealth Security Partners shows you how to calculate your RMD and provides IRS chart so you can calculate it no matter what age you are! Quick and Easy steps to calculate your RMD. For more information go to www.GannonWSP.com or Call us at (718) 704-0900.
Baby Boomers' required minimum distributions
If you're at a certain age, you'll need to take required minimum distributions from your retirement plans. Subscribe to WMUR on YouTube now for more: http://bit.ly/1lOjX9C Get more Manchester news: http://wmur.com Like us: http://facebook.com/wmur9 Follow us: http://twitter.com/WMUR9 Google+: https://plus.google.com/+wmur
Views: 71 WMUR-TV
Required Minimum Distributions (RMDs): What You Need to Know
This webinar examined required minimum distributions (RMDs) from retirement investment plans. The presenters were Dr. Barbara O’Neill from Rutgers University, and Karen Chan from the University of Illinois. This program provided answers to the most common questions that consumers have about RMDs. Additional topics covered include key deadlines associated with required minimum distributions, methods for calculating your and your spouse’s RMDs, IRS rules for RMDs, and tax planning tips. This webinar was originally presented on March 24, 2011, and was produced by the eXtension Financial Security for All Community of Practice.
RMD Timing
Retirement plans offer great tax advantages, but those benefits come at the price of required minimum distributions. You must begin taking money out of these accounts or suffer a 50% penalty on the amount that should have been withdrawn. This video discusses the timing of RMDs
Views: 110 Professor Stebbins
702 J Retirement Plan Scam
What are 702 j retirement plans – What is a 702 j retirement plan? 1-800-566-1002 http://www.RetireSharp.com . What are the best types of 702 j retirement plans for retirement and learn how you can avoid the most common mistakes that individuals have made when looking to purchase a 702 j retirement plan. 702 j retirement plan: The New Qualified Retirement Plan Did you know that permanent life insurance is considered the new qualified retirement plan? I didn't either until I came across a revolutionary product. Let me share some facts about traditional qualified retirement plans and how they compare to a properly structured permanent life insurance policy. A qualified retirement plan according to the IRS includes 401K, individual retirement accounts (IRAs), pension plans and annuities. While the structures of these plans are good, they are not the best. Here are some known facts about retirement plans: Retirement plan savings are accumulated tax deferred. Although the money is tax deferred, have you ever thought about what tax bracket you will be in when you retire? More than likely it will be the same bracket you are currently in or a higher bracket because of the amount of money you will need to withdraw monthly to maintain your lifestyle. Who wants to pay more taxes when they retire? Not me. Retirement plans have a maximum contribution amount per year. Now let's be clear that I am only speaking about retirement plans that you as the owner can contribute to. There are plans such as pensions and defined benefit plans that only an employer can make the contribution to. A 401K has a $17,000 and individual retirement accounts (IRA) have a maximum $5,000 contribution limit per year. What if you want to save more? Retirement plans have required minimum distribution age. The Uncle Sam, wanting to keep his hand in your pockets as usual, requires that you must start making withdrawals from your retirement plan by age 70 ½, unless it is a Roth IRA. Whether you need the money or not Uncle Sam forces you to receive regular distributions based on a calculation they came up with AND you have to pay taxes on it. Retirement plans cost you early withdrawals fees and penalties. Now suppose you need the money before you turn 59 ½, do you think you can take what you want with no problem? Nope. If you make a withdrawal before you are 59 ½ you will not only have to pay tax, but also a 10% penalty fee. But isn't it your money? Now let's compare these same benefits of retirement plans to a permanent life insurance policy. Permanent life insurance policies include a cash value account. This account is, in simple terms, a savings account that can be used as a retirement account. Did you know that IRS code 7702 states that you can use a retirement account as a supplement retirement account? It is truly an amazing thing. Let's compare. Life insurance cash accounts are accumulated tax-free. That's right tax free. Since you pay your life insurance premium after tax, the monies allocated to your cash account are after tax. This means that if and when you decide to pull funds out of your account, you will not have to report them to the Uncle Sam. Life insurance cash accounts have a higher maximum contribution limit. I would love to tell you that you can shelter any amount of money you want in a life insurance policy but that is no longer the case. At one point in time you in fact could do this but over the years the rules have changed. However, the great thing about this limit is that it is based on the size of your policy and how much you contribute above your premium every year. As a result, this limit can be higher than the $17,000 maximum 401K limit. Life insurance cash accounts can be withdrawn at any time. The cash accumulated in a life insurance contract can be taken out at anytime. The key is to withdraw these funds as a loan and not as a basic withdrawal. Why you ask? As a withdrawal, there is a possibility that you will have to pay taxes on the interest earned in that account. But with a loan you will not have to pay any tax. In fact you won't even have to pay the loan back. As long as the policy is current, the loan balance will remain. In the event that the funds have to be distributed to the beneficiary, the loan balance will be deducted from the payout amount. Feel free to subscribe to our YouTube channel and receive instant access on different retirement related topics. Thanks for watching! Related Search terms: 702 j retirement plan annuities 702 j retirement plan income 702 j retirement plan explained 702 j retirement plan reviews 702 j retirement plan review What is the best fixed indexed 702 j retirement plan vs the top immediate income 702 j retirement plan
Views: 4953 Beverly Ketchum
Get the IRS Out of Your RMD
In this week's Hidden Wealth Review, I teach that, if you are a Baby Boomer with over $200,000 saved in IRAs, you are facing what I call the Required Minimum Distribution Dilemma. Required Minimum Distributions (RMDs) are a ticking tax time bomb that I can teach you how to avoid. If you're already paying RMDs or you are about to start paying them, you need to learn how to sidestep this threat to your retirement peace of mind.
Update: Required Minimum Distributions | Mike Riedmiller Wealth | Nebraska Retirement Info
For details visit: http://SmartMoneyPlanning.com Call Mike Riedmiller at 402-904-7575. He is a Fiduciary Financial Advisor, Best-Selling Author and President of Riedmiller Wealth Management. He co-authored the best-selling book "The Road To Success" (Amazon best sellers list in 2016) with Jack Canfield and other professionals from around the world. Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor. Riedmiller Wealth Management and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision. This information is designed to provide general information on the subjects covered, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Riedmiller Wealth Management and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney. Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Retirement Wealth Advisors. retirement planning for your financial future, Omaha Nebraska, Lincoln NE advisors Nebraska wealth advisors Required Minimum Distributions RMD's Death and Taxes 70 1/2 years old
Views: 5 Mike Riedmiller