What the I.R.S. looks for and why. “Audit” is a word that can strike fear into the hearts of taxpayers. However, the chances of an Internal Revenue Service audit aren’t that high. In 2017, the most recent statistics available, show the I.R.S. audited 0.5% of all individual tax returns.¹ Being audited does not necessarily imply that the I.R.S. suspects wrongdoing. The … [Read more...] about What if You Get Audited?
Here are some things you might consider before saying goodbye to 2019. What has changed for you in 2019? Did you start a new job or leave a job behind? Did you retire? Did you start a family? If notable changes occurred in your personal or professional life, then you will want to review your finances before this year ends and 2020 begins. Even if your 2019 has been … [Read more...] about End-of-the-Year Money Moves
A retirement savings vehicle designed for the smallest businesses. Do you work for yourself? Then take a look at the solo 401(k), which marries a traditional employee retirement savings account to a small business profit-sharing plan. To have a solo 401(k), you must either be the lone worker at your business or its only full-time employee.1 Imagine nearly tripling your … [Read more...] about The Solo 401(k)
More professional practices (and practice groups) should look into them. In corporate America, pension plans are fading away. Only 16% of Fortune 500 companies offered them to full-time employees in 2018, according to Willis Towers Watson research. In contrast, legal, medical, accounting, and engineering firms are keeping the spirit of the traditional pension plan alive by … [Read more...] about Cash Balance Plans
Now is a good time to think about a few financial matters. Consider making tax moves earlier rather than later. If you own a business, earn significant investment income, are recently married or divorced, or have a Flexible Savings Account (FSA), you may want to work on your income tax strategy now rather than in December or April. Do you need to pay estimated income … [Read more...] about Tax Moves to Consider in Summer
Avoid these situations, if you can. Pursuing your retirement dreams is challenging enough without making some common, and very avoidable, mistakes. Here are eight big mistakes to steer clear of, if possible. No Strategy. Yes, the biggest mistake is having no strategy at all. Without a strategy, you may have no goals, leaving you no way of knowing how you’ll get there – a … [Read more...] about Eight Mistakes That Can Upend Your Retirement
A longer repayment time can be an advantage. The conventional wisdom about taking a loan from your 401(k) plan is often boiled down to: not unless absolutely necessary. That said, it isn’t always avoidable for everyone or in every situation. In a true emergency, if you had no alternative, the rules do allow for a loan, but they also require a fast repayment if y … [Read more...] about 401(k) Loan Repayment
What they are; why they matter. For many investors, it can be tempting to think of one's portfolio in terms of “gains” or “losses.” True, this is a central concept to understanding market behavior, but to truly maximize your investing knowledge, you also need to know about “unrealized gains,” “unrealized losses,” and how they can work to your advantage. As always, the follo … [Read more...] about Unrealized Loss and Gain