RMDs

Knowledgeably navigating 401(k) and IRA movements can have a massive impact on tax burdens — and the client relationship.

This recently passed bill is groundbreaking retirement legislation and will substantially alter the landscape for employer-sponsored retirement plans and individual savers.

The change would affect seniors who converted traditional accounts to Roth and paid taxes for the benefit of their heirs.

Adjusting a federal income tax return depends on personal tax circumstances, “such as the materiality of the error,” an expert says.

Seniors hoping to begin retirement next year are advised to review their risk exposure, pay down their debt and save for additional health care costs.

If not addressed, the client may see a higher tax bill than was planned. That won't go over well at tax time next year.

Those in the workforce will not owe taxes on rollovers to traditional retirement accounts, but will face consequences using the strategy with a Roth.

One option is to sell funds with lower or no estimated distributions, especially if possible savings will exceed trading costs.

Waiting too long means clients will miss out on the opportunity to maximize the plan’s full tax benefits.

Major repairs are needed to ensure Social Security’s long-term stability, according to an expert.