Comments on: Guidelines and Tax Saving Tips Pertaining to Retirement Savings

By: Ways To Reduce Your Tax Rate In 2011 — Personal Dividends - Money+Lifestyle

Ways To Reduce Your Tax Rate In 2011 — Personal Dividends - Money+Lifestyle — Fri, 15 Jul 2011 15:32:06 +0000

[...] people who find that they need money will cash in or make withdrawals from one or more of their retirement accounts. You will want to avoid this if at all possible, as any funds you pull from these accounts are [...]

By: alex

alex — Thu, 21 Apr 2011 11:55:41 +0000

thanks for the tips. pensions and tax is a confusing subject. it’s shocking the level of penalties payed out though to collect the money sooner.

By: 10 Ways to Save on Taxes Now — Personal Dividends - Money+Lifestyle

10 Ways to Save on Taxes Now — Personal Dividends - Money+Lifestyle — Tue, 14 Dec 2010 18:11:38 +0000

[...] best way to go about decreasing your taxable income is to channel money into tax shelters, such as retirement accounts. Presumably you will need to save for retirement anyway, so why not maximize your tax breaks by [...]

By: cna training

cna training — Fri, 20 Aug 2010 20:37:41 +0000

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By: Arohan

Arohan — Mon, 09 Aug 2010 15:05:22 +0000

Setting up a Trust would seem to be the critical activity that most neglect to do. It just gives so much flexibility in how your wishes are carried out while bypassing most of the probate.

By: joeplemon

joeplemon — Fri, 30 Jul 2010 20:14:41 +0000

Jason,
I asked Ashley (my guest post contributor) if she can answer your question. I see she already did! Great question and thanks, as always, for reading.

By: Ashley

Ashley — Fri, 30 Jul 2010 17:55:59 +0000

As I understand, you cannot name your children as beneficiaries if you are married as your spouse will take precedence unless he or she signs a waiver. If you are single, then you can name your children as beneficiaries (if you want them to receive the money), otherwise, if you die, then your Estate becomes the beneficiary. There is one caveat here. If your children are minors, some financial retirement plans may have an issue transferring the funds to a minor and so the court will have to name a trustee which can delay things. Therefore, your best bet is to setup a trustee now, and then name the beneficiary as your children’s trust (again if you are married your spouse needs to sign waiver). It is recommended you speak to a tax attorney or certified financial planner before doing anything.

By: Jason @ One Money Design

Jason @ One Money Design — Fri, 30 Jul 2010 04:13:19 +0000

Joe, a bit off subject, but do you know if it’s necessary to include your children as beneficiaries on your retirement plans (401k, IRA, etc.)? I understand the money automatically goes to your spouse if one were to pass away, but what about the children? Seems like I heard (or read) you the benefit could end up in court even if you have a will or trust.

By: JoeTaxpayer

JoeTaxpayer — Fri, 30 Jul 2010 01:19:36 +0000

CG – my 11 yr old will open her Roth by the end of August. Part time doesn’t mean you can’t open an IRA. Unless of course, you meant you have no money to spare. That’s different.

By: Credit Girl

Credit Girl — Thu, 29 Jul 2010 23:11:40 +0000

I haven’t been able to start my retirement funds yet because I am not a full-time employee. But I intend on contributing the maximum amount once I get out of college since I can probably only contribute the max during my early 20s. During my 30s, there will probably be other things to pay for like mortgage.

Yeah, I probably wouldn’t take a lump sum either. No early 10% withdrawal fee for me!