Required Minimum Distributions (RMDs) are calculated differently for distributions from multiple IRAs and multiple 401(k) plans. If you have more than one traditional IRA, the RMDs are calculated separately for each IRA but can be withdrawn from any of your accounts. However, if you have multiple 401(k) accounts, the RMD must be calculated for each…
Taxation of Annuity Income
If you purchased an annuity that provides income in retirement, the portion of the payment that represents your principal is tax-free; the rest is taxable. The insurance company that sold you the annuity is required to tell you what is taxable. Different rules apply if you bought the annuity with pretax funds (such as from…
Resources for Financial Caregivers
May is Older Americans Month Financial caregivers are people who manage money for a loved one who may need help because of health problems or memory issues. If you don’t have a financial caregiver lined up, it helps to plan ahead in case you need help in the future. Understanding your options will allow you…
Monthly Child Benefits Start in July 2021
As reported by Jeff Stein in the Washington Post (May 17): “The Internal Revenue Service will on July 15 start delivering a monthly payment of $300 per child under 6 and $250 per child 6 or older for those who qualify. The monthly benefits will be deposited directly in most families’ bank accounts on the…
Plan ahead for post-secondary education with a 529 account: Utah residents can get free money from Utah’s 529 plan
Your child is about to finish another school year—one of the most challenging for many students. With their future in mind, my529 is celebrating 5•29 Day by offering a boost for their educational dreams. Up to $40 contributed to your new my529 account Open a new my529 account between May 1 and May 31, 2021,…
Mother’s Day
Flowers, dining out, other soon-forgotten gifts for mother…. Flowers fade…. All the restaurants will be packed on Sunday; is this what you want when Covid still threatens? How about something that will last? What about an Individual Retirement Account for Mom? Whether currently employed for pay or a full-time homemaker, more than short term gifts,…
Financial Wisdom
Money quotes offering wisdom: “Exiting the market after a decline – and thus failing to participate in a cyclical rebound – is truly the cardinal sin in investing.” Howard Marks “Time in the market beats timing the market.” People first, then money, then things. – Suze Orman “Annual income twenty pounds, annual expenditure nineteen and…
Paying for home improvements
During the pandemic lots of home improvement projects were undertaken and with summer coming up lots more are on the drawing board. What the best way to pay for major home projects? savings? credit cards? home equity? sell appreciated investments? cash? Robyn Friedman, writing for The Wall Street Journal (4/23/21) offer suggestions. Cash: if you…
Evaluating College Aid Offers and Asking for More Financial Aid
We live in an upside down world due to Coronavirus. Many families have experienced major disruptions to their financial circumstances. Ann Carrns, financial and college expert writing for The New York Times reports on last minute strategies to try to garner more financial aid if you family has suffered a major income loss. Keep in…
Combatting nursing home neglect and abuse
If you have a loved one living in assisted living or a nursing home, you should be aware of the potential for abuse. “Nursing Home Abuse Justice was founded to shine a light on the widespread abuse and neglect that occurs in nursing homes and assisted living facilities. Some statistics indicate that 1 in 10…