Some holders of municipal-bond funds will be in for a surprise next tax season when it turns out that their tax-free investments are subject to tax after all. But others won’t get stung because they have chosen the right municipal funds — those geared to avoiding the alternative minimum tax. The AMT is a separate […] READ MORE
Using a payable-on-death or transfer-on-death account is the simplest way to keep assets out of probate. With either a transfer-on-death or a payable-on-death account, you are in control. The assets in the account pass directly to your named beneficiary and bypass probate, the court proceedings that validate your will after your death and transfers property […] READ MORE
The first wave of baby-boomers turns 65 this year, and that means millions of new retirees will begin to switch from accumulating a nest egg to drawing income from it. If you’re a boomer, it’s time to start thinking about how you’ll convert decades of savings into a lifetime stream of income, which accounts to tap first and […] READ MORE
You’ve been saving diligently for your retirement, but now you need some of that cash to cover today’s expenses. Can you get to it without incurring Uncle Sam’s tax wrath? In some instances, the answer is yes. When you take money out of an individual retirement account before you reach age 59½, the Internal Revenue […] READ MORE
Take advantage of this tax-advantaged account to stretch your savings. I’ve received quite a few questions recently about how Roth IRAs work, so I figured it would be helpful to put several questions and answers together as an all-in-one Roth IRA guide. Contribution limits Everything I read about preparing for retirement says to “save like […] READ MORE
Getting divorced is a major financial transaction not to be taken lightly. As such, it can have serious tax implications, including some pitfalls you’ll want to avoid. This is especially true when it comes to splitting up tax-favored retirement accounts between you and your soon-to-be ex. You’ll need to plan ahead to make sure the […] READ MORE