(Mid-America Pension Rights Project): How Does the CARES Act Impact Retirement Planning?

Via ThinkAdvisor By Roger Wohlner One of the most visible provisions of the CARES Act was the suspension of required minimum distributions (RMDs) for 2020. This covers RMDs in connection with IRA accounts, 401(k)s, 403(b)s and other similar retirement plans. This includes those who reached age 70½ during 2019 and were required to take their first RMD by April 1 of this year. It also … Continue reading (Mid-America Pension Rights Project): How Does the CARES Act Impact Retirement Planning?

(Mid-America Pension Rights Project): A Working-Class Program that Works to Solve Your Pension Problems

By Sandra Wisnewski, Director of the Mid-America Pension Rights Project at Elder Law of Michigan The Mid-America Pension Rights Project (MAPRP) assists clients with pension and 401(k) issues. There are no age or income restrictions and there is never a charge for the services. The Pension Project works to find answers and solutions to your pension-related problem. Just ask Mr. J. Mr. J. worked for a company for … Continue reading (Mid-America Pension Rights Project): A Working-Class Program that Works to Solve Your Pension Problems

Mid-America Pension Rights Project: Defined Benefit Pension vs Defined Contribution 401(k): Part 2

By Christine Steinmetz, Pension Attorney at the Mid-America Pension Rights Project at Elder Law of Michigan In my last blog post, I discussed a defined benefit pension where the employer solely contributes to the plan and bears all the risk. In this post, I will discuss the defined contribution plan. A 401(k), also called a defined contribution benefit, is very different from a defined benefit … Continue reading Mid-America Pension Rights Project: Defined Benefit Pension vs Defined Contribution 401(k): Part 2

(Mid-America Pension Rights Project): The Only Insurance Policies You Need After Retirement

Via U.S. News By Maryalene LaPonsie RETIREMENT IS WHEN everything changes. Seniors may end up with new schedules, new hobbies and even new homes. In the midst of all these exciting changes, don’t overlook the mundane: your insurance coverage. With a new season of life at hand, old policies may no longer meet your needs. However, seniors should be cautious about canceling their policies. You need … Continue reading (Mid-America Pension Rights Project): The Only Insurance Policies You Need After Retirement

(Mid-America Pension Rights Project): Social Security and survivor benefits

Via InvestmentNews By Mary Beth Franklin Widows and widowers have more flexibility than other Social Security beneficiaries when it comes to claiming strategies because retirement benefits and survivor benefits represent two different pots of money. A surviving spouse or an eligible surviving divorced spouse can choose one type of benefit first and switch to the other benefit later if it results in a larger monthly … Continue reading (Mid-America Pension Rights Project): Social Security and survivor benefits

(Mid-America Pension Rights Project): Can I Have a 401(k) and an IRA?

Via nerdwallet By Andrea Coombes Short answer: Yes, you can contribute to both a 401(k) and an IRA, but if your income exceeds the IRS limits, you might lose out on one of the tax benefits of the traditional IRA. How it works: One of the benefits of a traditional IRA is that you can get a tax deduction for your contributions each year. If … Continue reading (Mid-America Pension Rights Project): Can I Have a 401(k) and an IRA?

(Mid-America Pension Rights Project): Stop ‘Dollar-Cost Ravaging’ Your Portfolio in Retirement

Via Kiplinger By Jason Lambert It’s been more than seven years since Wade Pfau, one of the top experts in retirement research, wrote a column for MarketWatch urging readers to “Say Goodbye to the 4% Rule.” In it, Pfau suggests that the “rule” — which is more of a theory, really — made too many assumptions based on old numbers that didn’t necessarily translate to … Continue reading (Mid-America Pension Rights Project): Stop ‘Dollar-Cost Ravaging’ Your Portfolio in Retirement

(Mid-America Pension Rights Project): The (Partial) Death Of The Stretch IRA: How The SECURE Act Impacts Inherited Retirement Accounts

Via Kitces By Jeffrey Levine In December 2019, the retirement planning community was rocked when the Setting Up Every Community for Retirement Enhancement (SECURE) Act, which seemed destined to remain stuck in Washington gridlock indefinitely, was whisked back to life and attached to a year-end appropriations package that ‘had’ to be passed to keep the Federal government funded. Within a matter of days, the bill passed the … Continue reading (Mid-America Pension Rights Project): The (Partial) Death Of The Stretch IRA: How The SECURE Act Impacts Inherited Retirement Accounts

(Mid-America Pension Right Project): 5 Common Blind Spots on Social Security

Via ThinkAdvisor By Ginger Szala Social Security can be complicated, which is why an individual needs an advisor to walk them through salient points, and advisors need to be up to speed on the program. A majority of people don’t know the standard benefits they could be receiving, according to a SimplyWise survey that found less than one in eight Americans aged 60 to 70 … Continue reading (Mid-America Pension Right Project): 5 Common Blind Spots on Social Security

(Mid-America Pension Rights Project): Here’s a way to beat the tax burden for IRA heirs

Via CNBC By David Robinson New federal rules for individual retirement accounts greatly increase the tax burden for some heirs by telescoping the allowable period for withdrawals. Yet this pain can be greatly reduced by converting regular IRAs to Roth IRAs before bequeathing them. Previously, all heirs had their entire life expectancy to take withdrawals from inherited IRAs, so they were able to stretch out … Continue reading (Mid-America Pension Rights Project): Here’s a way to beat the tax burden for IRA heirs