Found 23 Articles.
Get access to our full article archive by subscribing to Retirement Watch and Retirement Watch Spotlight Series.
IRAs seemed so simple when they were started. Make the maximum contribution; invest the money until retirement; and then take money over time to pay for retirement. Managing IRAs, however, requires more thought if one wants to maximize after-tax retirement income. One issue that is not considered enough is which investments are best held in […]
Though set up to help regular people save, IRAs are fraught with complicated tax rules. Missteps can be made without the owner knowing it until it is too late to correct the problem. The result often is higher taxes and penalties. Sometimes the result is reduced IRA options. Here are some little-known but very common […]
Most people who are busy accumulating large balances in their IRAs and 401(k)s forget that the IRS holds a mortgage on those accounts. You put pre-tax dollars in the accounts and let income and gains compound tax deferred. But that balance in the IRA is not all yours. The price for those tax breaks is […]
With today’s tricky tax law, the account in which you hold an asset can be as important as which assets you own. Unfortunately, too little attention is paid to the issue of which accounts should hold which investments. Most of us have more than one type of investment account: 401(k)s, traditional IRAs, Roth IRAs, taxable […]
Individual Retirement Accounts are a long-standing and well-known part of the tax code. Yet, distributions from IRAs are one of the most misunderstood sections of the code. The situation is further complicated because the rules changed in recent years. There still are people – even financial professionals – who follow the old rules. Mistakes about […]
Many aspects of retirement planning changed over the last decade. One piece of conventional wisdom that has endured is to maximize contributions to IRAs and 401(k) plans. I’ve questioned that in the past, and it is time again to question this advice. IRAs and 401(k)s are tax shelters. Changes in the tax law alter the […]
Does your IRA have to be invested in publicly-traded securities or mutual funds? Few people realize that the answer is “no.” The IRA actually is one of the most flexible investment vehicles available. An IRA can be invested in real estate, private companies, hedge funds, separately managed accounts, mortgages, and a host of other assets. […]
Every general rule has its exceptions. IRAs are no different. The general rule for IRAs is to leave investments in them as long as possible. Your wealth will increase if income and gains are allowed to compound tax deferred as long as possible. We demonstrated that in the September 2003 discussion of which retirement accounts […]