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Direct vs. Indirect Rollover

If you’re eligible to receive a taxable distribution from an employer-sponsored retirement plan , you can avoid current taxation by instructing your employer to roll the distribution directly over to another employer plan or IRA. With a direct rollover, you never actually receive the funds. You can also avoid current taxation by actually receiving the distribution from the plan and then rolling it over to another employer plan or IRA within 60 days following receipt. This is…

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Can the IRS waive the 60-day IRA rollover deadline?

If you take a distribution from your IRA intending to make a 60-day rollover, but for some reason the funds don’t get to the new IRA trustee in time, the tax impact can be significant. In general, the rollover is invalid, the distribution becomes a taxable event, and you’re treated as having made a regular, instead of a rollover, contribution to the new IRA. But all may not be lost. The 60-day requirement is automatically waived if all of…

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Grandparents Can Help Bridge the College Cost Gap

For many families, a college education is a significant financial burden that is increasingly hard to meet with savings, current income, and a manageable amount of loans. For some, the ace in the hole might be grandparents, whose added funds can help bridge the gap. If you’re a grandparent who would like to help fund your grandchild’s college education, here are some strategies. 529 college savings plan A 529 college savings plan is one of the best vehicles for…

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Tax Tips for the Self-Employed

Being self-employed has many advantages — the opportunity to be your own boss and come and go as you please, for example. However, it also comes with unique challenges, especially when it comes to how to handle taxes. Whether you’re running your own business or thinking about starting one, you’ll want to be aware of the specific tax rules and opportunities that apply to you. Understand the self-employment tax When you worked for an employer, payroll taxes to fund…

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How Much Do You Know About Social Security Retirement Benefits?

Social Security is an important source of retirement income for millions of Americans, but how much do you know about this program? Test your knowledge, and learn more about your retirement benefits, by answering the following questions. Questions 1. Do you have to be retired to collect Social Security retirement benefits? a. Yes b. No 2. How much is the average monthly Social Security benefit for a retired worker? a. $1,360 b. $1,493 c. $1,585 d. $1,723 3. For…

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Term vs. Terms

We don’t want to ever politicize our communication with you.  However, if we don’t address the topic of where the economy is going under President Trump, you will think us timid, which good advisors should never be.  Therefore, let us address the question that many of you are at least mulling in private if not addressing in public: Will the economy be good under Donald F. Trump, or tank because of his leadership? The answer to this question, one…

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