Are you getting ready to retire? If so, you’ll soon experience changes in your lifestyle and income sources that may have numerous tax implications. Here’s a brief rundown of four tax and financial issues you may contend with when you retire: Taking required minimum distributions. These are the minimum amounts you must withdraw from your
Retirement Archives - Crawford Ellenbogen
Jun 22, 2023
4 tax challenges you may encounter if you’re retiring soon
- By Joan Ellenbogen
- Retirement
- 0 Comments
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Feb 7, 2023
Retirement plan early withdrawals: Make sure you meet the requirements to avoid a penalty
- By Joan Ellenbogen
- Retirement, Taxes
- 0 Comments
Most retirement plan distributions are subject to income tax and may be subject to an additional 10% penalty if you take a withdrawal before age 59½. Fortunately, there are some exceptions to avoid the penalty but there are strict rules. In one case (TC Memo 2023-9), a taxpayer lost his job and took a 401(k)
Feb 1, 2022
Numerous tax limits affecting businesses have increased for 2022
- By Victor Dozzi
- Business, Deductions, Retirement, Taxes
- 0 Comments
Many tax limits that affect businesses are annually indexed for inflation, and a number of them have increased for 2022. Here’s a rundown of those that may be important to you and your business. Social Security tax The amount of an employee’s earnings that is subject to Social Security tax is capped for 2022 at
Nov 18, 2021
Thinking about participating in your employer’s 401(k) plan? Here’s how it works
- By Joan Ellenbogen
- Retirement, Taxes
- 0 Comments
Interested in participating in a 401(k) plan offered by your employer? Under a 401(k), you have the option of setting aside a certain amount of your wages in a qualified retirement plan. By making this election, you’ll reduce your gross income, and defer tax on the amount until the cash (adjusted by earnings) is distributed
Nov 8, 2021
Factor in taxes if you’re relocating to another state in retirement
- By Joan Ellenbogen
- Retirement, Taxes
- 0 Comments
Are you considering a move to another state when you retire? Perhaps you want to relocate to an area where your loved ones live or where the weather is more pleasant. But while you’re thinking about how many square feet you’ll need in a retirement home, don’t forget to factor in state and local taxes.
Aug 5, 2021
5 possible tax aspects of a parent moving into a nursing home
- By Joan Ellenbogen
- Deductions, Estate, Financial Planning, Medical, Retirement
- 0 Comments
If you have a parent entering a nursing home, you may not be thinking about taxes. But there are a number of possible tax implications. Here are five. 1. Long-term medical care The costs of qualified long-term care, including nursing home care, are deductible as medical expenses to the extent they, along with other medical
Nov 3, 2020
New business? It’s a good time to start a retirement plan
- By Joan Ellenbogen
- Retirement
- 0 Comments
If you recently launched a business, you may want to set up a tax-favored retirement plan for yourself and your employees. There are several types of qualified plans that are eligible for these tax advantages: A current deduction from income to the employer for contributions to the plan, Tax-free buildup of the value of plan
Jul 22, 2020
What qualifies as a “coronavirus-related distribution” from a retirement plan?
- By Victor Dozzi
- Retirement
- 0 Comments
As you may have heard, the Coronavirus Aid, Relief and Economic Security (CARES) Act allows “qualified” people to take certain “coronavirus-related distributions” from their retirement plans without paying tax. So how do you qualify? In other words, what’s a coronavirus-related distribution? Early distribution basics In general, if you withdraw money from an IRA or eligible
Apr 7, 2020
CARES ACT changes retirement plan and charitable contribution rules
- By Ellenbogen
- Charity, Retirement
- 0 Comments
Feb 13, 2020
