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There is no stress when the check is in the mail

Written By: Van Pappas, CFP These days there are fewer and fewer companies offering pension plans.  If you are fortunate to have one, you might find a letter in the mail one day from your pension manger with what looks like an attractive lump sum buyout.  Most times the amount of the lump sum payout could be the biggest check you will ever see.   They offer these buyouts as a way to reduce the impact on the company’s financials, by shrinking the size of their pension obligations. One of the issues is that if you take the lump sum personally, rather than rolling it into an IRA, you will have to pay income tax on the entire amount and this could push you into a higher tax bracket.  Once you elect to take the offer, you cannot undo it. Look at the monthly payment options available and calculate the performance you may need to make to potentially get a similar ...

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5 Potential IRA Mistakes

Look out IRA investors because the IRS looks like it will be turning its attention to taxpayers who make mistakes with their IRA accounts. (source: www.wsj.com)    This includes matching distributions to your tax returns, stepped up audits, and tighter reporting overall when it comes to scrutinizing IRA accounts.    As I have shared for the last couple of years on Your Smart Money Moves, the Government is in dire need to increase revenue to balance the budget and pay off our voluminous debt.    One way to do this is to crack down on the mistakes that we make as taxpayers.   Nobody likes coming home and getting a letter in the mail from the IRS.  So here are five mistakes you might be making for the IRS to take a closer look at your tax return. Contributions To Roth IRA Accounts –   While some of you did Roth IRA conversions back in 2010 (and some are still converting), a Roth ‘conversion’ and ...

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