Investors seek to safeguard their retirement savings against market volatility and inflation.  As a result, the appeal of alternative assets within Individual Retirement Accounts (IRAs) has grown significantly. Among these alternative investments, precious metals have emerged as a popular choice.  This is due to their intrinsic value and ability to serve as a hedge against economic uncertainty. However, not all precious metals are eligible for inclusion in an IRA. Understanding which precious metals are allowable within an IRA can empower investors to diversify their portfolios strat ..read more

Introduction: In recent years, significant changes have reshaped the landscape of inherited Individual Retirement Accounts (IRAs) and defined contribution plans. The implementation of the Setting Every Community Up for Retirement Enhancement (SECURE) Act in 2019 introduced alterations that have implications for beneficiaries and their required minimum distributions (RMDs). Among these changes is the elimination of the “stretch IRA,” affecting how heirs can manage and distribute inherited retirement assets. To provide clarity amidst these shifts, the IRS has released guidance aimed at offering ..read more

So you received an IRS Form 5498 in the mail.  You may be wondering what exactly it means? Don’t worry; you’re not alone. Form 5498, often received from your IRA custodian, trustee or issuer, holds vital information regarding your individual retirement account (IRA) contributions and transactions. In this guide, we’ll delve into the details of Form 5498, shedding light on its purpose, contents, and what it means for your financial future. Understanding IRS Form 5498 What is IRS Form 5498? IRS Form 5498, officially known as “IRA Contribution Information,” is a tax document used to report v ..read more

In the dynamic realm of personal finance, a trend is emerging.  That trend is the burgeoning preference of younger investors for Roth Individual Retirement Accounts (IRAs). Once predominantly associated with older demographics, Roth IRAs are now captivating the attention of millennials and Gen Z.  This allows these generations to reshape their approach to financial planning. Let’s delve deeper into this phenomenon and examine the reasons behind the growing inclination towards Roth IRAs among the younger cohort. Understanding the Roth IRA Before looking into the reasons fueling the su ..read more

Navigating the Aftermath: What Happens When a 401(k) Owner Passes Away? Losing a loved one is undoubtedly one of life’s most challenging experiences. Amidst the emotional turmoil, practical matters like finances often demand attention. For those inheriting a 401(k) retirement account, understanding the process and options available is crucial. Let’s delve into what happens when a 401(k) owner dies and the key takeaways beneficiaries need to know. The Passing of the Baton: Transfer of 401(k) Assets When an individual with a 401(k) retirement account passes away, their hard-earned savings don’t ..read more

Navigating the Landscape of Roth Contributions to SEP and SIMPLE IRAs: What We Know So Far As the financial world evolves, so do the tools and strategies available for retirement planning. One of the more recent developments in this arena is the inclusion of Roth contributions to Simplified Employee Pension (SEP) and Savings Incentive Match Plan for Employees (SIMPLE) Individual Retirement Accounts (IRAs). This addition opens up new avenues for individuals to build tax-efficient retirement savings. However, navigating the specifics of this provision can be complex, especially given the current ..read more

Are you looking for a tax-efficient strategy to access your retirement funds before reaching the age of 59½? Enter the Roth Conversion Ladder – a multiyear plan designed to unlock your retirement savings without penalties and pave the way for tax-free withdrawals in your golden years. Let’s delve into the intricacies of this powerful financial maneuver and explore how it can benefit you on your path to financial independence. Understanding the Roth Conversion Ladder The concept behind the Roth Conversion Ladder is simple yet powerful. By systematically converting funds from a traditional IRA t ..read more

The last wave of baby boomers, born between 1959 and 1964, approach the age of 65.  As a result, a significant shift is set to occur in the U.S. economy. Dubbed “peak 65”  This demographic cohort is poised to retire en masse between 2024 and 2030, with implications reaching far beyond just individual households. The Impact on the Economy Currently, peak boomers make up approximately 10% of the U.S. workforce. Their departure from the workforce within the next decade will create a ripple effect across various sectors of the economy. Because of this, millions of job vacancies will be l ..read more

Required minimum distributions (RMDs) are the minimum amounts you must withdraw from your retirement accounts each year. Typically, you must commence withdrawals from traditional IRA, SEP IRA, SIMPLE IRA, and retirement plan accounts once you reach age 72 (or 73 if you hit this milestone after Dec. 31, 2022). Transitioning to the recent developments, on April 16, 2024, the IRS issued Notice 2024-35, offering vital guidance and relief regarding certain provisions of after-death required minimum distribution (RMD) rules outlined in Code section 401(a)(9). According to these rules, RMDs must comm ..read more

Jeff Dixon, MBA, CISP, SDIP If you have earned income from a W-2 job or self-employment, you are eligible to make an annual contribution to a Self-Directed IRA. However, there are different types of IRAs, each with differing contribution limits. Occasionally, someone will contribute more to their IRA than they were eligible for. This situation calls for the removal of an “Excess IRA Contribution”. Correcting an Excess Contribution: Individuals can handle excess contributions in different ways, depending on when they make the correction. An IRA owner may choose to recharacterize the contribut ..read more