IT’S ALMOST TAX TIME AND YOU HAVE CHOICES! Boomers & Seniors, according to Rodney Brooks in an article in USA Today, he says, “Retirees can save money by managing taxes year to year.” He states, “What you’ve done during the year can be pretty important come April. But, the implications for people in retirement and those planning for retirement can be huge.” • Minimum distribution. If you are 70-1/2 or older, you must take a minimum distribution from your IRA. Not doing so could result in big penalties. • Take advantage of the catch-up. If you’re 50 or older, you’re allowed to make additional “catch-up” contributions to your IRA or 401(k). • Limit the number of accounts. “If you’re approaching retirement or in retirement, you should look to simplify your finances. As you get older, you may struggle to keep up with all those accounts. If you narrow it down tone or two, you make it easier for yourself, and you make it easier for your heirs.” • Utilize the gift-tax exclusion. “If you have more (money) than you need, take advantage of the $14,000 gift tax exclusion. Giving money away is the easiest way to shrink your taxable estate.” • Beware of risk. “A big decline in the market will be a bigger issue for you.” Mr. Clements states, “One of the great things about being retired is you have a lot of control over your tax bill. You can decide how big your tax bill will be. “ Janice M. Lauderdale, author, Boomer & Senior advocate amazon/Boomers-Seniors-Yourself-Danger-ebook/dp/B00DQJAGX8/ref=sr_1_2?s=books&ie=UTF8&qid=1373738948&sr=1-2 amazon/author/janicemlauderdale writersauthority/janice-lauderdale facebook/janicelauderdale janmarielauderdale@gmail
Posted on: Tue, 21 Oct 2014 11:52:44 +0000
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