PHILADELPHIA.Today’s Post

Check out our new blog post: Big News on IRA and 401(k) Distributions at Death. Due to the IRS’ new regulations, your clients may be hit with a huge tax bill they didn’t expect. Click below to see our discussion of the new IRS regulations and what this could mean for you and your clients.

How an inherited annuity is taxed depends on a variety of factors, but one key is whether the money that’s coming out of the annuity has been taxed before (unless it’s in a Roth account). If the money distributed from an annuity has not been taxed before, it will be subject to tax. Contributions that have already been taxed will not be subject to income tax.

Inherited grandpa or grandma's IRA or 401(k)? You'd better watch out, advisors tell me in my latest piece for FA mag. Read it here: Advisors Say Final IRS Rule On Inherited IRAs A Disappointment But Not A Surprise https://lnkd.in/gDa_YNPw

If you are contributing to a Roth 401(k) or a Roth 403(b), read this: The tax code allows you to withdraw your entire cost basis from a Roth IRA with no penalty. This rule does not apply for traditional IRA's or any 401(k) / 403(B), which have a 10% early withdrawal penalty plus your ordinary income tax. For this reason, here is a strategy to consider: 1. Contribute only up to your 401(k) employer match to reap the full benefit 2. Open and max out a Roth IRA ($7,000) for added flexibility and liquidity 3. If there is excess funds, continue to contribute over the match of your Roth 401(k) If an emergency were to occur, you can pull from the Roth without losing any of your hard-earned dollars. This is a simple change to strengthen your safety net!

https://lnkd.in/dnEpvCY7 Converting a 401(k) to a Roth IRA can potentially provide valuable long-term benefits, but it also triggers a tax bill that you’ll need to plan for. While the ...

“When making a withdrawal from traditional 401(k)s and IRAs, you’ll be expected to pay income tax on each one,” said Kim Gattis, senior vice president and financial planning manager at UMB Bank. “With the help of tax strategies, you can minimize what the government takes from you. These strategies include moving to a state that doesn’t charge income tax, delaying receipt of benefits until age 70 and reassessing your investment holdings.” Learn more about the expenses many retirees forget to plan for.

Find out everything you ever wanted to know about Emergency Savings Accounts (PLESA) , brought to you straight from your friends at Franklin-based Your Money Matters Books & Taxes Inc. Just click below.

Here’s a strategy to consider for those trying to mitigate future tax risk…

With the tax filing deadline looming, it's crucial to consider your IRA contributions for 2023. Whether it's a traditional IRA or a Roth IRA, let's strategize together to optimize your contributions and secure your financial future. #LilyHo

Tax freedom day: the day you begin earning money for yourself. #TaxFreedomDay