Kay Bailey Hutchison Spousal IRA Boosts Retirement Savings

Kay Bailey Hutchison Spousal IRA Boosts Retirement Savings

In July 2013, President Barack Obama signed into law a bill renaming a subsection of the Internal Revenue Code for former Sen. Kay Bailey Hutchison, R-Texas.  The Kay Bailey Hutchison Spousal IRA — formerly titled “Special Rules for Certain Married Individuals” — allows married individuals filing a joint return to claim the maximum deduction for each spouse’s qualified contribution to an IRA.

Read More

IRA Rollovers: New Year, New Rule

IRA Rollovers: New Year, New Rule

A new, taxpayer-unfriendly rule regarding IRA rollovers took effect as the calendar rolled over to a new year. Starting on Jan. 1, 2015, if an IRA rollover occurs from one IRA, the IRA owner can’t do another rollover from any IRA for a 12-month period.  To give you some perspective, let’s look at what’s changed and what it means for IRA owners.

Read More

Is There Strife After Death?

Is There Strife After Death?

Probably not … if you designate your IRA beneficiaries.

All owners of retirement plans, life insurance policies and annuities should make sure they’ve designated beneficiaries. The beneficiary form is an important estate planning tool, and a will can’t override it. Remember these two beneficiary rules:

  1. The beneficiary form determines who gets the money from your IRA, 401(k), insurance policy, pension plan — or any other instrument with a beneficiary designation — when you die.
  2. Don’t forget the first rule.
Read More

Republican Sweep May Break Legislative Logjam

Republican Sweep May Break Legislative Logjam

Now that mid-term elections are over, let’s take a quick look at how the results affect some key retirement issues.

Tax reform iffy before 2016 election

With total control of Congress in 2015, Republicans will likely introduce tax reform legislation. Some experts contend that there is a very limited window in early 2015 for the new Congress to pass a tax reform measure before the presidential campaigning starts for the 2016 election. Many believe the best chance of achieving comprehensive tax reform will come in 2017 with a new president.

Read More

Most Collectibles off Limits for Traditional IRAs

Most Collectibles off Limits for Traditional IRAs

As you know, traditional IRAs can invest in publicly traded stock, bonds and mutual funds. But do you know that some types of investments are prohibited by the IRS?

Collectors, beware!

Read More

Expanding Use of Annuities in 401(k) Target Date Funds

Expanding Use of Annuities in 401(k) Target Date Funds

On Oct. 24, the Treasury Department and the IRS issued new guidance designed to expand the use of income annuities in target date funds (TDFs) in 401(k) and other defined contribution (DC) plans.

Read More