The traditional pension may seem like a thing of the past. But many workers are still counting on payouts from one of these “defined benefit” plans in retirement. If you’re among this group, it’s important to start thinking now about how you’ll receive the money from your pension. MAKING A CHOICE Some defined benefit [...]
When 529 plans first hit the scene, circa 1996, they were big news. Nowadays, they’re a common part of the college-funding landscape. But don’t forget about them – 529 plans remain a valid means of saving for the rising cost of tuition and more. FLEXIBILITY IS KING 529 plans are generally sponsored by states, [...]
If a relative needs financial help, offering an intra-family loan might seem like a good idea. But if not properly executed, such loans can carry substantial negative tax consequences – such as unexpected taxable income, gift tax or both. Here are five tips to consider: Create a paper trail. In general, to avoid undesirable tax [...]
When they’re old enough to understand the concepts, some children start investing in the markets. If you’re helping a child learn the risks and benefits of investments, be sure you learn about the tax impact first. POTENTIAL DANGER For the 2016 tax year, if a child’s interest, dividends and other unearned income total more [...]
With summer headed toward its inevitable close, you may be tempted to splurge on a pricy “last hurrah” trip. Or perhaps you’d like to buy a brand new convertible and feel the warm breeze in your hair. Whatever the temptation may be, if you’ve pondered dipping into your 401(k) account for the money, make sure [...]
With tax time long over and midyear officially here, it’s a great time to organize your financial records. And the key word here is indeed “organize.” Throwing all your important documents into a drawer won’t help much when an emergency occurs and you (or a family member) need to find a certain piece of paper. [...]