Newsroom View

Taxes don’t go away when you retire. In fact, for many of you reading this post, taxes may be even more onerous in the future once you are retired. Ignoring the ticking time bomb of taxes in retirement could dramatically lower your standard of living in retirement.

Far and away, the most frequent questions that pop into the HerMoney Mailbag are on the topic of retirement: Planning for retirement. Managing our money in retirement. How much to save for retirement, and where to save for retirement… and it’s that last one that we’re diving into this week. Specifically, we’re tackling all things IRAs — individual retirement accounts — because there is SO much there. There are traditional IRAs. There are Roth IRAs. There are IRA conversions. There are IRA misconceptions that need to be dispelled. 

The extended tax-filing deadline gives many Americans extra time to contribute to certain investment accounts for 2020.

The May 17 deadline for filing 2020 taxes is swiftly approaching.

If you haven’t filed your taxes yet, it’s time to start.

Here’s an update to my earlier article on IRS’s interpretation of how the SECURE Act 10-year rule will work for beneficiaries of individual retirement accounts. I am now 100% convinced that the idea of annual required minimum distributions under the 10-year rule was an IRS error that will soon be corrected.

Ed Slott is a nationally recognized IRA distribution specialist, professional speaker, television personality, and best-selling author. He is known for his unparalleled ability to turn advanced tax strategies into understandable, actionable, and entertaining advice. This is the most interesting conversation we’ve ever had about taxes. 

Two tax and retirement specialists say a recent IRS publication has thrown IRA inheritance planning into chaos, but that advisors shouldn’t make changes just yet.

In this episode of Human Capital, Ed Slott of Ed Slott & Co. relays important tax advice related to potential changes to the stepped-up basis and estate tax, and also warns that the potential boosting of the required minimum distribution age to 75 is likely “useless,” and that lawmakers may actually be “creating a bigger problem” with such a change.

Congress passed several relief bills to ease the financial burdens on struggling American workers during the pandemic. A provision of The Coronavirus Aid, Relief, and Economic Security Act allowed workers of any age to withdraw up to $100,000 penalty-free from their company-sponsored 401(k) plan or individual retirement account in 2020.

Saving money for retirement can be hard, especially if you are behind or cannot save much. For some people retirement is the last thing on their mind. Just contributing 1% of your salary to retirement savings to start and slowly increasing that contribution can make a big difference over time.