Is a Backdoor Roth IRA Right for You?
First of all, what is a Backdoor Roth IRA? It’s merely a way to contribute to a Roth IRA when your income exceeds the contribution limit of $183,000 (for a couple filing jointly). The Backdoor Roth IRA procedure removes this restriction. It involves a simple two-step process. First you contribute up to $5,500 to a […]
What If You Won the $1.6B Lottery?
Okay, I know three folks have already won this lottery, but it was pretty exciting while it lasted. If you had won, naturally you wouldn’t receive $1.6B. You’d have to split the prize with two other winners and pay federal taxes. (Fortunately for the winners, their states either have no income tax or no taxes […]
2016 Financial Resolutions
According to a 2015 University of Scranton survey, the third-most-common New Year’s resolutions are money-related. (Number 1 is self-improvement and number 2 is weight-related.) The specific kinds of financial resolutions vary quite a bit, but a few things appear on most people’s lists. In general terms, these can be grouped into two categories — spending […]
Changes to Social Security Claiming Options
On November 2, President Obama signed a two-year budget deal that was approved by congress on a bipartisan basis. It eliminates the possibility of a government shutdown, keeps the Social Security disability fund solvent and reduces premium hikes for Medicare Part B beneficiaries. These features caused it to earn the support of AARP and the […]
The Power of Goal Setting
Antoine de Saint-Exupéry, author of The Little Price, observed that “a goal without a plan is just a wish.” And yet many of us move through life without a plan or even a goal. When we do this, the outcome is unpredictable. Think of it like taking a road trip without a destination in mind […]
Plan Now to Minimize Your Taxes
There are a number of ways that many of us can us to lower our tax bills. These include Traditional IRA and 401(k) contributions, gifting, charitable contributions, income deferral, offsetting investment gains with losses and so on. Many of these techniques can be implemented late in the year when your tax situation is more clearly […]
Paying for Long-term Care with Health Savings Accounts
A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP). There are no taxes on the contributions and no taxes on qualified withdrawals. As the cost of long-term care (LTC) insurance rises and the benefits decline, alternatives are […]
Saving for College
Okay, you don’t need to read an article to know that college costs a lot more than when you went to school. Despite the breathtaking numbers, lots of kids still go to school and there are strategies to help accumulate the required funds. To get started, let’s ballpark the amount of money we’re talking about. […]
IRA Rollover Rules Change in 2015
As a refresher, IRA rollovers are simply the transfer of funds from a retirement account such as a 401(k) into an IRA, or an IRA-to-IRA transfer. There are three ways to accomplish this rollover or transfer: Direct rollover – The administrator of your account may issue your distribution in the form of a check made […]
Retirement Planning for CSU Employees
CSU employees do not pay Social Security taxes. Because of this, employees are not eligible for Social Security benefits (see the exceptions discussed below). Because your earnings from CSU are not covered under Social Security, employees are mandated to participate in one of the following retirement programs: • Colorado Public Employees Retirement Association (PERA) • […]