Aging Energized Articles

Read about topics to help you age well, enjoy your retirement years, and navigate the intricacies of Medicare and Social Security.

New Law Brings Changes to Retirement Planning

Since it happened right in the midst of the 2019 holiday season, you may not be aware that new legislation bringing sweeping changes to retirement plans was passed on December 20, 2019. The SECURE Act (for Setting Every Community Up for Retirement) became effective on January 1, 2020. It has many provisions; some are aimed at individual savers (this means YOU), and some are focused on employers.

The SECURE Act eliminates "stretch IRAs." A stretch IRA happens when you inherit an IRA and you extend its distributions over your lifetime. If you are young, this was a real tax-saver because you could extend the payout period of the inherited IRA over several decades, thus spreading out the payment of income taxes over a longer period of time. It also meant that the risk to increasing your income in a tax year, and potentially moving into a higher tax bracket, could be reduced.

Effective for deaths occurring after December 31, 2019, funds from inherited IRAs must now be fully withdrawn by...

Continue Reading...

Trimming Your Tax Bill in Retirement

Here are a few tips for trimming your tax bill in retirement . . . whether your retirement is decades away, just around the corner, or you’re already living the dream.

Many people don’t know that a portion of your Social Security benefits will likely be taxed. And money you take out of your traditional IRA and 401(k) will definitely be taxed. Choices you make now will make it easier for you to lower your taxes when you’re living on your SS benefits and money you’ve invested.

One of the most common ways to avoid taxes in retirement is to invest in a Roth IRA. You don’t get the tax break now because you put money into the account after paying taxes on it. But then the money grows tax-free, and when you withdraw the money it comes out tax-free. That’s different from a traditional IRA or 401(k), which both give you a tax break the year you invest the money.

Another way to reduce your tax bill is to contribute to an HSA. You get to put in money...

Continue Reading...

50% Complete

Thanks for Joining Us!

We're happy to have you on board. We'll send you email periodically to let you know when we have new information.