What does it mean to file a tax extension?
What are estimated tax payments?
Who generally makes estimated tax payments?
When are estimated tax payments due?
What happens if I don’t make estimated tax payments when I am required to?
What do I need to consider when selling a home?
My child will be heading to college soon should I apply for FAFSA?
Do I need to include 529 plans in FAFSA applications?
What is the Gift Tax?
What are the different types of Individual Retirement Accounts?
What is the current IRA contribution limit and contribution deadline?
What is a Required Minimum Distribution (RMD)?
What happens if I withdraw funds from my tax deferred investments before 59 ½?
What is an IRA rollover?
Milestones to Note
50 – If you are a qualified public safety employee you can take penalty-free withdrawals from your qualified retirement plan if your employment ends during or after the year you reach age 50.
55 – You may take penalty-free withdrawals from your qualified retirement plan (i.e., 401K plan) if your employment ends during or after the year you reach age 55.
59 ½ - All withdrawals from qualified retirement plans and IRAs are penalty free, whether or not you’re still employed. Ordinary income taxes generally apply to these distributions
62 - You are elegible to begin collecting Social Security benefits. However, these benefits will be reduced by up to 30% due to not having reached full retirement age.
65 - You are eligible to enroll in Medicare. Medicare Part A (hospital insurance benefits) is automatic for those eligible for Social Security. However, Medicare Part B benefits are voluntary and require enrollment which is open to you 3 months prior to your 65th birthday. Regardless of employment status, it is recommended you enroll in Medicare Part B to avoid a 10% annual penalty being applied in perpetuity.
72 – You must begin taking minimum distributions from most tax-deferred retirement plans to avoid a 50% penalty on the amount that should have been withdrawn. Annual required minimum distributions are calculated based on life expectancies which are determined by the federal government.