While you were busy wrapping up your Christmas shopping last December, Congress was busy passing yet another economic recovery bill. The Worker, Retiree and Employer Act of 2008 sounds like a sleigh full of gifts, something for just about all of us. I want to talk about one of the provisions of the Act, the suspension of required distributions from retirement accounts. This idea is not going to apply to everyone but, if it does, it may save you some taxes in 2009. Continue Reading…
Sticking to the Rules On an Inherited IRA
If you just inherited an IRA, congratulations… and condolences. Because if you just inherited an IRA, somebody you liked (or at least, that liked you) has died. But the good news is you’ve got money! Now, what to do with it? You might be tempted to spend it on a new car, or even a new house! Before you do, you need to be aware of the basic rules for IRA distributions or you could get a nasty tax surprise. I’ve got a book on IRA distributions that runs about 600 pages. At the risk of a slight loss of detail, I’ll hit the basics in the next 600 words or so! Continue Reading…
Retirement 101: The Traditional IRA
No doubt many of you have been lying awake at night trying to come up with ways to spend the tax rebate you’ll receive later this year. The government wants you to spend it, of course, to stimulate the economy. I expect some folks are so happy about this windfall they may spend it two or three times with the help of credit cards. Some will think, “if I get $600 out of nowhere, I’ll buy the buy the $1,000 big screen and take a weekend trip!” Continue Reading…