Category: Retirement Planning

A terminal diagnosis can force a family to use retirement savings years earlier than planned. Federal law provides a narrow relief valve: a qualifying IRA distribution received after proper physician certification may avoid the 10% additional tax that normally applies before age 59½. The exception does not make the withdrawal tax-free, and the paperwork must…

An inherited IRA can look like a long-lived family asset, but federal distribution rules often put it on a ten-year clock. For many nonspouse beneficiaries, the account must be fully distributed by December 31 of the year containing the tenth anniversary of the owner’s death. The deadline is simple to state; the withdrawals required before…

Bristol Myers Squibb retirees are at the center of a federal appellate dispute over what happens when an employer moves pension promises to an insurance company. The Labor Department has entered the case on the employer’s side of a threshold question, arguing that retirees receiving every promised check have not shown a legal injury. The…

A large mutual-fund purchase can carry a smaller percentage sales charge than a modest one, but the discount is not always applied from the new check alone. Existing holdings, eligible household accounts and a written commitment to invest over time may all help reach a breakpoint. Missing one leaves less of a retirement contribution invested…

The Saver’s Credit can reward retirement contributions twice: money enters a tax-advantaged account, and qualifying households receive a federal credit that directly reduces tax. For a married couple, the maximum is $2,000, but income, contribution history and each spouse’s eligibility determine the actual amount. The credit uses up to $2,000 per spouse The calculation considers…

An IRA deposit can become expensive when it exceeds the annual limit or is made without enough eligible compensation. The federal excise tax is 6%, and it can return year after year until the excess is withdrawn or properly absorbed into a later year’s unused contribution room. The error does not disappear after one tax…

Early retirement usually comes with an expensive obstacle: distributions before age 59½ can face a 10% additional federal tax. An exception tied to separation from service can remove that charge at 55, but only when the age, job departure and account all line up. The departure year controls the exception The rule applies when an…

A quiet retirement-law change erased one of the biggest practical differences between a Roth 401(k) and a Roth IRA. Original owners can now keep designated Roth money inside a workplace plan for life without taking required minimum distributions, preserving tax-free assets until they are actually needed. The old rollover pressure has disappeared Before 2024, a…

Required minimum distributions create a forced transition from saving to taxable withdrawals for many retirement accounts. The rule generally arrives at age 73, but the original owner of a Roth IRA can leave that account untouched for life, making account type as important as account balance when retirement cash flow is planned. The age-73 trigger…

IRA contribution room rises to $8,600 in 2026 for an eligible saver age 50 or older. That total combines the regular $7,500 limit with a $1,100 catch-up. The number applies across traditional and Roth IRAs together, so opening two accounts does not double the ceiling. The catch-up begins with the calendar year of age 50…