.. Neglecting to do this is the number one mistake made by spouses who inherit because it is the key to the survival of the account after the spouse's death, and it's the key to keeping it in the family."
On page 68 he says taxes on 401(k) NUA lump-sum distributions have changed. "At one time, this special break tax break for easing the burden on lump-sum distributions from ompany plans was available two ways: using 5-year averaging or 10-year averaging. Now just 10-year averaging is used if you qualify for this tax break." In order to qualify for 10-year averaging you must have been born before 1936, you must take the distribution all in one tax year and you must have been in the plan for at least five years before the year of the distribution. He suggests that 403(b)s be rolled over into IRAs when one retires and this account protected with sufficient life insurance. This way, any savings and retirement accounts will be passed on to one's beneficiaries without major tax penalties. He states a case where a Mr. Albert Lemishow in 1993, wished to roll over the stock in what he thought would be a tax-free transaction. He was highly taxed on his Keogh self-employment plan and IRA accounts that he bought stock with and fought the IRS for five years.
In the book I'm in Debt, Over 40, with No Retirement Savings. HELP! By John L. White, (published by Everlove and Bohannon Publishing, 2004, Wesley Chapel, FL) he suggests people develop the discipline to start saving for retirement beginning with their very first job, so by the time one retires, there is enough to retire on.
In the book Just Give me the Answer$: Expert Advisors Address Your Most Pressing Financial Questions, Sheryl Garrett and Marie Swift of the Garrett Planning Network (Dearborn Trade Publishing, 2004, p says that...
American Corporate Fraud This new century began with great expectations. However, just as the door of the 21st century opened, September 11th shocked the world and bruised the economy. Then, followed the bankruptcy and corporate scandals of some of America's major corporations. One such Fortune 500 company that fell at the new century's threshold was Enron, one of the world's leading energy companies. Once hailed as the most promising corporation in
Retirement Planning for retirement can be a significant source of anxiety for most people, even those who are currently financially secure. A lack of job security compounds the problem of being able to properly save money for retirement. Mandatory retirement laws make financial planning for retirement even more important, even for the very young. Ideally, I would like to have at least $500,000 in the bank, as cash, for my retirement.
As Geisel (2004) notes: Income-tax deductions are worth the most to high-bracket taxpayers, who need little incentive to save, whereas the lowest-paid third of workers, whose tax burden consists primarily of the Social Security payroll tax (and who have no income-tax liability), receive no subsidy at all. Federal tax subsidies for retirement saving exceed $120 billion a year, but two thirds of that money benefits the most affluent 20% of
Retirement Options Almost one-third of American workers are failing to prepare themselves for a comfortable retirement, according to a new survey conducted by American Express. The national telephone survey of working adult men and women who had recently left or lost their jobs revealed that 30% did not invest for retirement in their company's 401(k) plan. The survey also revealed that 16% of these participants rolled their money into an IRA, and
retirement planning. Beginning as early as age, about what are their dreams for retirement? What goals are important for living during the retirement years? The individual should write their retirement plan and have it available to update when needed. DESIGNING A STRATEGIC RETIREMENT PLAN People are living longer and having better health than ever before. "We're gained 25 years since 1900. That extra time is added to midlife. We have a
Retirement Planning Retirement means different things to different people. For some, retirement means being sufficiently financially independent to travel and relax 24 hours a day. Others may view retirement as a "career change." However an individual views retirement will help determine how much he or she will need to retire. Will the lifestyle change dramatically in retirement, or will an individual continue doing the things you currently do, trading work for
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