February 2020
Retirement Articles This Week
Your Retirement Help Center!
We'll focus on websites and publications that help prepare and plan your retirement and personal finance decisions. Visit us each week. Thank you for visiting and gaining great retirement insight!
Tax Time...Questions on the 1099-R
You may have received a 1099-R in your January mail if you did a distribution from an IRA or rolled over a 401k or 403b employer plan into your IRA.
What the 1099-R tells you:
Box 1 of the form shows the total amount of your retirement fund that was distributed. The more important amount to you right now is in box 2a, the taxable amount. For direct rollovers from one qualified plan to another, that amount is generally zero.
Also check box 7, the distribution code. A letter or number should be here, explaining to the IRS exactly why your retirement money was taken out and just what was done with it. Direct rollovers to another qualified plan are coded with the letter "G." This includes transfers to another company's 401(k) plan, a tax-sheltered 403(b) annuity, a government 457(b) plan or an IRA.
Wise Owl
IRS Publication 560...Retirement Plans for Small Business
This is the newly updated 28-page IRS Publication 560 which covers retirement plans that can be set up and maintained for Small Businesses. Includes SEP, SIMPLE, and Qualified Plans.
New Years Resolution...look At your Social Security Benefits
Go to Social Security to find an estimate of what your benefits will be at age 62, at your full retirement age, and at age 70.
Historic Day On Wall Street...Dow Above 20,000
Dow closes at 20,068
Did you Turn 70 1/2 Last year?
Your required minimum distributions (RMD's) begin in the year you turn 70 1/2, but that first RMD is not required to be satisfied in full until April 1 of the following year. Make sure to complete that distribution by April 1, 2017. Your future distributions are due at year end.
Your IRA custodian or employer 401k plan can help you calculate that distribution. You'll use the balance of your IRA or employer plan at December 31, 2015.
South Dakota is the Nation's top moving destination
South Dakota narrowly overtakes Oregon, which held the top spot for the previous three years, as the nation’s “Top Moving Destination.” This is the first time South Dakota has held the no. 1 spot. Vermont inched out Oregon for the no 2. position, with Oregon rounding out the top three. Those are the results of the United Van Lines’ 40th Annual National Movers Study, which tracks customers’ state-to-state migration patterns over the past year.
Should you Rollover your 401k?...Important Decisions at retirement
The Defined Contribution Rollover Survey asked recent retirees who retired with at least $75,000 in their last employer’s 401(k) plan about what they did with their savings upon retirement.
So what did these retirees do with their 401(k) plans?
Roughly 62% of respondents rolled over their 401(k) at retirement to an IRA or another account, and 38% reported leaving their money in the 401(k), at least initially at retirement. Surprisingly, no one reported having spent the majority of their 401(k), implying that little leakage occurs right at retirement for individuals with a decent amount of retirement savings. However, individuals with lower amounts of 401(k) savings are still more likely to cash out their 401(k) at retirement.
Courtesy of Forbes
2017 Contribution Limits
IRA Accounts A maximum contribution of $5,500 is allowed plus an extra $1,000 "catch up" contribution if you are 50 years old or more.
401k or 403b Plans The contribution limit is $18,000 and allows a $6,000 catch-up contribution for those 50 or older.
Jonathan Clements Money guide
Probably one of the best financial writers...always providing great information on retirement and financial planning. Jonathan Clements has a new blog and provides his financial guide.
Check out
HumbleDollar.com....
Happy New Year everyone!
I wish you you health, happiness and prosperity in 2017. Thank you for visitng our site. Wish I knew what the markets will do this year...we'll continue to provide helpful information and tools for your retirement planning!
Again best wishes for 2017!
John Baumer...the "Wise Owl" at RetirementThink