Question: I plan to do home improvements that will cost $35,000. I have saved $15,000 and while I know taking money from my IRA is generally not a good idea I’d rather do that than get a loan. What are your thoughts? J.R. Answer: Since you are under age 59½ you’ll face both income taxes and a ten percent […]
Cash in Your IRA for Home Improvement?
How to Save Taxes and Cut Expenses on My Vacation Home?
Question: My wife and I are 76 years old and have owned a vacation property for over forty years which has appreciated from $30,000 to $250,000. There may be benefits to leaving it to our two children but I would like to stop the upkeep and preside over the sale myself. The children will eventually get the […]
Is an Annuity a Good Choice for Retirement Money?
Question: My mother, 73 years old, has an annuity with an option to convert to a lifetime income. If she continues taking the Required Minimum Distributions (RMDs), eventually all of the principal will be consumed. When is the best point to exercise the option to convert to guaranteed fixed income for life? Answer: First, let’s […]
Convert Your 401k to Roth Under New Law
Question: Do the changes from the recent tax legislation have any impact on taxes for those with incomes under $450,000 regarding their withdrawals from deferred compensation and 401k plans? D. D. Answer: One item that is new under this tax law is that everyone with money in 401k or similar plans is allowed to […]
Fiscal Cliff Averted- But Is It Enough?
In a made for daytime TV soap opera drama, Congress and President Obama agreed on new legislation that avoided $600 billion in tax hikes on most Americans. This does not mean that higher taxes were avoided. All workers will see smaller paychecks because Congress allowed the 2% payroll tax holiday to expire. For earners making $50,000 per […]