Friday, May 30, 2014

What You Need To Know About Maximizing Your Retirement Income

What You Need To Know About
Maximizing Your Retirement Income

Baby Boomers in particular want to know whether Social Security will be there for them and how much they
can expect to receive. Most Baby Boomers do not know when they should apply for their Social Security benefits and how to maximize that benefit. Most importantly, many Baby Boomers are concerned that their Social Security benefit will not be enough for them to live on during their retirement. Before strategies can be discussed, it is crucial to understand the value of Social Security and what it can mean for you. Social Security basically offers a stream of income that you cannot outlive and it includes inflation adjustments, familiarly known as COLAs. For example, if your monthly Social Security income today is $2,000 and the annual COLAs are 2.8%, in 20

Monday, May 19, 2014

Prohibited Transaction Disqualifies IRA

Disqualifies IRA

We often discuss the pitfalls of self-directed IRAs and the increased risk of prohibited transactions. In a recent Tax Court case, Ellis v. C.I.R. (T.C. 2013) 106 T.C.M. (CCH) 468, Mr. Terry Ellis’ entire IRA was disqualified, subjecting him to not only accuracy related penalties imposed by the IRS but also a 10% early distribution tax on the entire IRA.

Monday, May 5, 2014

What is the "Still Working Exception?"

What is the "Still
Working Exception?"

There is no still working exception for IRAs, Simple IRAs or SEP IRAs. This exception only applies to certain qualified employer retirement plans. If you have a qualified employer retirement plan,