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Taxes

On March 28 I wrote a post about a U.S. tax court altering the rules on IRA to IRA  rollovers and wondered when the IRS would officially change the rules and start enforcement.  Previously according to publication 590 and several IRS letter rulings a taxpayer could rollover each IRA account IRA to IRA once per year-...

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taximgjpg

The January 2014  Bobrow tax court ruling  is an IRA game changer with huge ramifications for IRA owners.   The tax court has ruled the once a year IRA rollover rule applies to all of someone’s individual retirement accounts and not to each separately.  This ruling is stunning in that it changes the Internal Revenue Service’s long standing position in...

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Sneaky Powerball Scam

March 26, 2014 by
Dog Ready to Read

A sneaky Powerball phone scam is targeting state residents.  The callers telling their targets that they are eligible for unclaimed Powerball prizes and asking them to pick some numbers. Later, the scam callers contact the consumers again claiming that they won a third or fourth prize for millions of dollars and an automobile. A...

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Retiree Enjoying Long Life

With advances in medical treatment and technology, many people now survive critical illnesses that would have been fatal in the past.  As a result of this increased life expectancy senior Americans have the opportunity to watch grandkids grow into adulthood and start families of their own.  Enjoying some great grandkids is a real possibility....

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ambulance

Seems there are daily changes taking place in ObamaCare/ACA so it is no wonder there is so much confusion surrounding the purchase of  health insurance.  Even the WI Office of the Commissioner of Insurance (OCI) is not totally correct with their press release this morning: The second deadline is March 31, 2014, which is...

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Retirees Finding Their Way

At retirement, if you have a pension, you have to make a difficult decision that could negatively impact your future financial security and that of your spouse.  Most people with company pension plans give this decision little thought and simply select the first payout option listed on their pension estimate; Joint and Equal Survivor Option....

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Dog Ready to Read

Interesting life insurance facts you can share with your friends and family Some of the facts and statistics from a recent LIMRA report, “The Facts of Life and Annuites,”1 are real eye-openers and help tell the story of how important life insurance is. Facts shared in the report: Life insurance Most individual life insurance policies...

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Sledding Retirees

Don’t forget about your unemployed or under-employed spouse when it comes to IRA contributions. Given the current unemployment rate, you may have a nonworking spouse at the moment. That doesn’t mean they are not able to make an IRA contribution. As long as you are married, filing a joint tax return, and under the age...

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Focusing on tax favored income will help keep retirement income flowing.

  Taxes are inevitable.  You know that part.  Each April 15, you tally up all of your 1099 forms that you have received and pay taxes on your investments, even if you haven’t actually spent a penny of those dividends and interest earnings.  Unfortunately, the money lost to taxes will never be available to...

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The Estate Tax Bill

February 25, 2014 by
Taxes

The federal government will not accept a percentage of your estate as payment for your estate tax bill. Instead, your estate tax bill must be paid in cash, and it must be paid within nine months after your death. If your estate is subject to the federal estate tax, there are FOUR ways to...

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Utility Bill Email Scam

February 25, 2014 by
Retirement Headache

Yet again, another utility bill email scam is making the rounds.  According to the Consumer Protection Bureau that utility bill you received by email for $500, $524 or $524.30? It’s a fake. Delete it and never click the link in the message. The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) has received a...

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dollars

The ObamaCare penalties for failing to purchase qualified health insurance start in tax year 2014. If a person was required to purchase minimum essential coverage and did not, she/he would only be required to pay a tax penalty for not purchasing PPACA coverage (if she/he files a U.S. tax return). In many cases, this tax is far...

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When is the Question

Retirement plans come with a wide array of tax code abbreviations IRA, Roth IRA, SEP, 401(k), 403(b), HR10 just to name a few. There are times to consider doing a rollover of these funds. When should you consider rolling over or transferring  your retirement plan? Change of employment- Most retirement plans become what is known as orphaned when you leave...

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2014 IRA Rollovers

February 17, 2014 by
Lifestyle in Retirement

An IRA Rollover does not involve current income tax deductions, but rather is a method through which tax favored retirement plan assets can be transferred from one plan to another plan while maintaining their tax favored status. What Types of Rollovers Are Permitted in 2014? Eligible Plans Eligible rollover distributions from qualified plans, 403(b)...

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Relief

Do you own fixed annuities? Do you wonder why so many retirees own fixed annuities? The Top 3 Reasons to Own Annuities 46% own annuities to Supplement Social Security and Pension Income Planning Tip Do you receive interest earnings that you’re not using for income? Not only are you paying unnecessary taxes on this...

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Naming an IRA Beneficiary

February 13, 2014 by
Naming an IRA Beneficiary

What Are the Options Available in Naming an IRA Beneficiary? When you open an IRA account, you are asked to name a beneficiary or beneficiaries to receive the value of the IRA at your death. You can also change beneficiaries during your lifetime. There are generally three classes of beneficiaries: Primary Beneficiaries: A primary...

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Relief

How Can an Income Annuity Protect Against the Risk of Living Too Long? The purpose of an annuity is to protect against the financial risk of living too long…the risk of outliving retirement income…by providing an income guaranteed* for life. In fact, an annuity is the ONLY financial vehicle that can systematically liquidate a...

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Medicare does not pay for long term care expenses

Some news outlets are wrongly reporting ObamaCare/ACA eliminated Heath Savings Accounts – Not so fast.  Health Savings Accounts are still available and a viable means of saving for health care expenses on a tax favored basis, but you must be eligible. Who is eligible to establish an HSA? A Health Savings Account can be established by an...

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Retirement Headache

The following is an overview of the options available to an IRA beneficiary. Depending on the type of IRA, whether or not the IRA beneficiary is the spouse of the deceased IRA owner and the IRA beneficiary’s needs and objectives, different options may be appropriate.  In order to avoid unforeseen and/or negative tax consequences,...

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What Happened to Retirement Dogs

What Is the Retirement Savings Tax Credit? This is often an overlooked tax credit. Remember you have until April 15, 2014 to make your 2013 IRA contribution.  The Retirement Savings Tax Credit dates back to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA 2001)which  introduced a new temporary tax credit for IRA contributions and elective...

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