Did you know you may be able to take your 401(k), 403(b), or 457 plan and roll it into another type of retirement account while you are still working? Let’s look at how these rollovers can happen and the pros and cons of making them.
With inflation taking a toll on everyone, it’s hard to find anything good about it. We finally have a silver lining! The 2023 retirement plan contribution limits have been announced and they have all gone up dramatically, in large part because of the inflationary effect. For those of you who are still working, this is a good opportunity to take advantage of your opportunity to save more money towards retirement as well as your health savings accounts.
There are countless financial books out there that promise to make you a more intelligent investor, an expert budgeter, or a money guru. But which ones contain solid advice, and which ones should you pass over? There are so many options that it's hard to tell.
A qualified longevity annuity contract, or QLAC is an annuity you purchase from an insurance company using money (from your IRA or other qualified retirement plan such as a 401(k). A QLAC provides guaranteed monthly payments until death and avoids the volatility in the stock market. So long as the QLAC follows the IRS rules, it is exempt from the Required Minimum Distribution (RMD) rules until income stream begins. Purchasing a QLAC lowers your RMD’s which must begin at age 72 and reduces your tax bill in the years prior to the commencement of annuity payments from the QLAC.
For those of you who are on Medicare it’s that time of year again. Medicare open enrollment occurs annually from October 15th through December 7th, for a January 1, 2023, effective date. Fall Open Enrollment is the time of year when you can change your Medicare Advantage Plan or Medicare Part D prescription drug plan. During this time, you can make changes to your coverage without penalty including enrolling in, changing, or dropping a Medicare Advantage plan or Part D prescription drug plan. You can also choose to keep your current coverage.
This article will use the fact that October is Financial Planning Month as a springboard to educate readers on general financial planning tips.