by Brendan Willmann | Mar 10, 2020 | IRA, Transitioning
I’m a big fan of qualified charitable distributions (QCDs). The now permanent law allows IRA holders who are over 70 ½ to make distributions from their IRA directly to a charity. There are two primary benefits to using this strategy: The IRA owner does not...
by Brendan Willmann | Mar 10, 2020 | IRA, Roth IRA
If you are ineligible to contribute directly to a Roth IRA you may have elected to instead fund a Traditional IRA – with the intention of subsequently converting to a Roth IRA. It’s important to understand how these transactions should be reported on your tax...
by Brendan Willmann | Feb 8, 2020 | 401k, Preparing, Recent
A premature 401(k) withdrawal is a triple whammy. First, the early 401(k) distribution is taxed as income. If you withdraw $10,000 and are in the 22% Federal tax bracket, you will incur $2,200 of Federal tax liability, reducing the net distribution after taxes to...
by Brendan Willmann | Feb 8, 2020 | 401k, Investments, Preparing, Recent, Roth IRA
If given the opportunity to contribute after-tax dollars to your 401(k) and subsequently roll to a Roth IRA, back up the truck. BLUF (Bottom Line Up Front) Funding a 401(k) with after-tax contributions is the first step of a process that can potentially direct...
by Brendan Willmann | Oct 31, 2017 | College Savings
529 college savings plans offer several attractive features for grandparents interested in saving for a grandchild’s education. Grandparents may appreciate the ability to retain control of their gifted assets while simultaneously reducing their taxable estate and...
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