To calculate your RMD, divide the amount of money held in your tax-deferred account(s) at year end by the number of years left in the account owner’s life expectancy and take out at least that amount. The amount of your RMD withdrawal is then added to your other taxable income for the year and taxed according to your marginal tax rate. Thus, the whole amount of a distribution or withdrawal from an IRA, 401(k), 403(b), or other tax-deferred retirement savings …
Can I roll over or transfer a fixed deferred annuity tax free?
Fixed annuities are similar to bank certificates of deposit (CDs) in that they earn a guaranteed interest rate for a set period of time. Two major differences are that fixed annuities are tax deferred and often provide a higher return than bank CDs. Yes, you can roll over or exchange a fixed annuity for a new annuity. Check to make sure that surrender charges don’t apply, however. Typically, a minimum deposit of at least $5,000 will be required. Investment experts …
What can new parents do if they have not yet received the Social Security number for their newborn child? Should we reapply?
Hospitals routinely provide the paperwork necessary to get a Social Security number issued to a newborn. Do not reapply unless you have first determined that the Social Security Administration needs you to do so.
To check on the status of the issuance of the baby’s Social Security number, you should contact your local Social Security office by searching on https://secure.ssa.gov/apps6z/FOLO/fo001.jsp or by calling the national hotline at 1-800-772-1213.
If the Social Security Administration requires you to refile and instructs you …
Gifting and Tax Strategies
It is important to evaluate the effects of federal and estate taxes on estate planning. An estate may be subject to taxes before it is distributed to beneficiaries.
A specified portion of an estate is exempt from estate taxes. During 2012, the first $5,120,000 of an estate can be distributed to children or other heirs tax-free. The top federal estate tax rate on the taxable portion of an estate is 35% in 2012.
While most gifts or estates are not …