TMTW #406 Retirement Plan and IRA Rollover Advice

Tax and Money Tip this Week:
Retirement Plan and IRA Rollover Advice
October 31, 2018 | No. 406

When moving your retirement money to an IRA, you should follow this one rule of thumb.

If you fail to follow the rule I’m about to reveal, you can face two big problems.

  • First, your check will be shorted by 20 percent.
  • Second, you will be on the search for replacement money.

Here is this very important rule of thumb that you need to follow: Move the money using a trustee-to-trustee transfer. Nothing else.

There are two types of transfers that can be used to move qualified plan distributions into IRAs in a tax-free manner: (1) direct (trustee-to-trustee) rollovers and (2) what we will call traditional rollovers.

If you want to do a totally tax-free rollover, do nothing other than the direct (trustee-to-trustee) rollover of your qualified retirement plan distribution into the rollover IRA.

This is easy to do. Simply instruct the qualified plan trustee or administrator to (1) make a wire transfer into your rollover IRA or (2) cut a check payable to the trustee of your rollover IRA (this option is less preferable than a wire transfer).

Your employee benefits department should have all the forms necessary to arrange for a direct rollover.

Questions or Comments?  You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

 

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TMTW #405 Investing 101- Part 3 of 3

Tax and Money Tip this Week:
Investing 101 Part 3 of 3
October 24, 2018 | No. 405

This week we have a very important tip on investing concepts.

This series is not intended as investment advice, but only a general discussion of investing in the new millennium and in the age of the Internet, High Frequency Trading, and Machines.

Here’s a lesson that the 2008-2009 Great Recession taught a lot of people:

KEY LESSON:
Learn what Liquidity (or have a lot of cash or money markets available) means.  And know where this money exists and have access to it: to pay your bills, meet obligations, and the unexpected.

RECOMMENDED:
Classic certified financial planning advice says you should have 9 months of your monthly obligations of cash at a minimum in safe places, easily accessible.  We like to see 12 months of cash reserves.

Questions or Comments? You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #404 Investing 101- Part 2 of 3

Tax and Money Tip this Week:
Investing 101 Part 2 of 3
October 10, 2018 | No. 404

This week we continue our series on investing concepts.

This series is not intended as investment advice, but only a general discussion of investing in the new millennium and in the age of the Internet, High Frequency Trading, and Machines.

Here are some thoughts to consider for investing today, that our parents may not have taught us:

  1. Always limit your losses on any stock or mutual fund to 7-8%; frequently, you can limit your losses sooner.  Let your gains run.
  2. Know when its time to sell a stock or mutual fund.
  3. In today’s market, know how to be agile and nimble when necessary.
  4. ALWAYS protect your capital.

More on investing next week.

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.Questions or Comments?

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #403 Investing 101-Part 1 of 3

Tax and Money Tip this Week:
Investing 101 Part 1 of 3
October 3, 2018 | No. 403

This week we will start a series on investing concepts.

This series is not intended as investment advice, but only a general discussion of investing in the new millennium and in the age of the Internet, High Frequency Trading, and Machines.

Here are some thoughts to consider for investing today, that our parents may not have taught us:

1)  It’s OK not to play.
Point:  You do NOT have to be invested all the time.

2)  Have a goal and an exit plan in mind.

3)  Never fall in love with any stock.

More on investing next week

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.Questions or Comments?

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #402 October 15th Deadline Fast Approaching

Tax and Money Tip this Week:
October 15th Deadline Fast Approaching
September 26, 2018 | No. 402

Final Filing Deadline Reminder

If you need to file a Form 1040 (individual return), the deadline to file is October 15, 2018.  This assumes you had filed for an extension prior to April 17, 2018.  You also have until October 15, 2018 to fund a SEP-IRA for tax year 2017.

As a reminder, putting your tax returns on extension can be a good thing – but penalties to miss the extension deadline can be steep, up to 25% penalty of taxes owed, so make sure that you make the October 15th deadline.

Give us a call if you need help meeting your deadline.

Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

 

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TMTW #401 How Big an Emergency Fund Do You Need?

Tax and Money Tip this Week:
How Big an Emergency Fund Do You Need?
September 19th, 2018 | No. 401

Click Here to read an article about Emergency Funds
from an article in Bottom Line Personal.


 

 

 

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

 

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TMTW #400 Insurance Tip – Accident Forgiveness Rider

Tax and Money Tip this Week:
Insurance Tip- Accident Forgiveness
September 12th, 2018 | No. 400

I’d like to share a relatively new addition to some insurance companies auto policies:  The Accident Forgiveness and/or Violation/Ticket Forgiveness Rider.  If you have this on your auto policy, it could save you hundreds or thousands of dollars! (it costs me very little)

Here’s how it works:
If you have this rider on your policy and you or someone in your family has an accident or ticket, your insurance company will “forgive” you one time and not increase your rates.  Some insurance companies have an accident forgiveness rider only and not ticket forgiveness, so be sure to ask questions and understand the details of what you are buying.

Call and ask your auto insurance agent or insurance company if they offer this insurance rider that could save you thousands.

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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