Retirement Income Center

When you become a participant in a 401(k) plan that includes a Roth option, you face an interesting dilemma. In addition to deciding what percentage of your salary you would like to contribute to your plan, you need to let your plan administrator know how your contributions should be allocated between the plan’s traditional and […] The post How to put some muscle into your Roth 401(k) appeared first on Retirement Income Center.

With the Summer Olympics in Rio de Janeiro underway, sports are on my mind. There’s an unlevel playing field in the retirement planning world. Forgetting about defined benefit plans which are in a league of their own, 401(k) plans are the clear favorite for employees who want to save for retirement. 401(k) participants enjoy a […] The post The 401(k) Unlevel Playing Field appeared first on Retirement Income Center.

Single premium immediate annuities (SPIAs) and deferred income annuities (DIAs) are often used to provide sustainable lifetime income to replace a portion of employment income in retirement.  Both are tax-favored when nonretirement funds are used to purchase them since a portion of each income payment is a nontaxable return of principal. The primary difference between […] The post Period Certain is Cheap Insurance on SPIAs and DIAs appeared first on Retirement Income Center.

When I’m sixty-four? –“When I’m Sixty-Four” by The Beatles (1967) Full Retirement Age (FRA), which is the age at which you’re entitled to receive 100% of your Social Security monthly retirement benefit, increased from 65 to 66 as a result of the 1983 Amendments. Now, FRA is being phased in to increase to 67 for […] The post Should the Social Security eligibility age be increased to 64? appeared first on Retirement Income Center.

The title of my most recent MarketWatch RetireMentors article that was published on June 6th is 5 Reasons to Include Sustainable Income in Your Retirement Plan. Reason #1 is hedge against longevity. Although sustainable, or predictable, income from Social Security, pensions, and fixed income annuities provide lifetime income that can build a solid floor for […] The post Hedge Against Longevity with a Roth IRA Strategy appeared first on Retirement Income Center.

Given the inherent complexity and unpredictable nature of retirement planning, it’s important that sustainable income is included in your plan. Merriam-Webster’s simple definition of sustainable is “able to last or continue for a long time.” Examples of sustainable income include Social Security, defined-benefit pension plans and fixed-income annuities. There are five basic reasons for including […] The post 5 reasons to include sustainable income in your retirement plan appeared first on Retirement Income Center.

I presented an overview of five types of unallowed income tax losses that must be carried forward to the following year in my MarketWatch RetireMentors article, 5 Carryovers to Remember When Doing 2016 Tax Planning that was published on May 4. This post will discuss one of them, passive losses, in more detail since the rules […] The post Leverage Your Rental Property Suspended Passive Losses appeared first on Retirement Income Center.

With the 2015 tax filing season in the rear-view mirror for most of us, it’s time to start thinking about 2016 income-tax planning if you haven’t done so already. The starting point for income-tax planning should always be your prior-year income-tax returns. In addition to giving you a baseline for your projected 2016 income, deductions, […] The post 5 carryovers to remember when doing 2016 tax planning appeared first on Retirement Income Center.

When I think about and evaluate insurance riders for my clients, I look at the potential value my client will receive from adding one or more of them to a particular insurance contract. Insurance riders are optional benefits that aren’t included in the basic policy that may be purchased at additional cost. A rider typically provides […] The post Income Rider is Everything When it Comes to FIAs appeared first on Retirement Income Center.

If you have a traditional IRA or a traditional 401(k) plan that can be rolled over into a traditional IRA, you’re sitting on a potential gold mine. You might ask yourself how this is possible given the fact that (a) you generally can’t take withdrawals from a traditional IRA before age 59-1/2 without a 10% […] The post Don’t Miss Your Roth IRA Conversion Opportunity appeared first on Retirement Income Center.

It’s that time of the year when a lot of people are sitting on pins and needles wondering if they’re going to owe money when they file their income tax returns. Others know they will receive a sizable refund because they receive one every year. What’s the right way? Should you minimize your income tax […] The post Does it matter whether you receive an income-tax refund? appeared first on Retirement Income Center.

I’m a big fan of 401(k) plans that allow Roth contributions, especially for employees who are in low income tax brackets. You can contribute up to $18,000 of after-tax salary in 2016 to a designated Roth account for 401(k) plans that allow such contributions. The limit is increased to $24,000 if you’re 50 and older. […] The post Escape the Roth 401(k) Trap appeared first on Retirement Income Center.

Life-insurance companies have historically been the go-to choice assuming that your goal is to receive a known and predictable amount of secure lifetime income. The product offered by life insurance companies that best meets this need is fixed income annuities. Annual lifetime income from an investment of $1 million Let’s look at an example to […] The post $1 million today or $100,000 a year for the rest of your life? appeared first on Retirement Income Center.

The overriding goal of retirement income planning is to generate sufficient after-tax, inflation-adjusted income streams to match projected expenses during different stages of retirement. Although this can be quite challenging due to all of the unknown variables, there’s one situation where it’s possible to match the timing of the income stream to the expense, and, […] The post Long-Term Care Insurance — Tax-Free Income When You Need It appeared first on Retirement Income Center.

Did your Medicare Part B premium increase 270% in 2016 from what you paid in 2015? Assuming that your health status hasn’t changed, how is that possible? What about the fact that there was no increase in Part B premiums for Social Security recipients since there was no cost-of- living increase for 2016 benefits? Medicare […] The post Did Your Medicare Part B Premium Increase 270% in 2016? appeared first on Retirement Income Center.

It has always been fascinating to me how income-tax laws motivate behavior. Take IRAs for example. Even though the contribution limit is only $5,500, or $6,500 if you’re 50 or older, traditional and Roth IRA contributions continue to be the go-to choice for many individuals planning for retirement. Limited tax savings with QLACs Although it’s […] The post Don’t limit your longevity protection to $125,000 appeared first on Retirement Income Center.

2015 was a successful year for Bob Klein and Retirement Income Center. In addition to servicing his clientele, Bob continued to distinguish himself as a leader in the retirement income planning field through his various activities. Bob began the year by attending the AICPA Advanced Personal Financial Planning Conference in Las Vegas in January. He also attended […] The post 2015 Was a Successful Year appeared first on Retirement Income Center.

One of the questions that I’m often asked is, “How much do I need to save for retirement?” That’s a great question, however, a better one is, “How much should I save for retirement in tax-friendly vs. taxable investment accounts?” Although neither question can be answered with a simple rule of thumb, the second one […] The post Take steps to make your retirement nest egg tax friendly appeared first on Retirement Income Center.

Even if you're not covered by a retirement plan, deductibility of your IRA contribution is at risk if your spouse has a retirement plan and your income is too high. The post Deductibility of Your IRA Contribution Endangered by Your Spouse’s Retirement Plan appeared first on Retirement Income Center.

You’re having a banner year at work and you want to set aside some of your earnings for retirement. Specifically, you want to make a deductible traditional IRA contribution. Your income was $70,000 in 2014 and will increase to $115,000 in 2015 as a result of a sizable bonus. You got married earlier this year […] The post The tax rules that limit the deductibility of your IRA contributions appeared first on Retirement Income Center.