A Roth IRA is perhaps the most tax-friendly asset that an heir can inherit. However, the rules regarding distributions can be somewhat complicated. The Q&A below provides a brief overview of the rules regarding Inherited Roth IRAs. If I inherit a Roth IRA, what are my options? Since the passage of the SECURE Act in…
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As explained in our article on “How to Evaluate a Mortgage Refinance”, the decision to refinance comes down to evaluating the benefit of the interest savings against the costs of the refi. A traditional approach to evaluating this tradeoff is to calculate a payback period, which is defined as the number of months it takes…
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With interest rates at historic lows, many homeowners are considering refinancing their current mortgage. But making the decision to refinance or not can be tricky given the costs involved. Here are some factors to consider when considering a mortgage refinancing (“refi”). Is It Worth It? The decision to refinance comes down to evaluating the benefit…
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Beginning at the end of 2019 with the passage of the SECURE Act and then continuing with the CARES Act which was passed in response to COVID-19, there are important provisions that those with 529 plans and/or student loans should be aware of. 529 Plans Tuition Refunds In response to the pandemic and the fact…
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After a surprisingly strong year for stocks in 2019, the new decade got off to a rough start for investors with one of the most abrupt and rapid stock market declines on record. In just 5 weeks, the S&P 500 declined by more than 33%. Overall, U.S. stocks ended the quarter down about 20%, while…
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There are several provisions in the CARES Act, which was signed into law on March 27, 2020, that provide flexibility to retirement account owners. In a previous blog post, we discuss the suspension of Minimum Distribution Requirements for 2020. But perhaps the most significant change to IRAs under the CARES Act was the establishment of…
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Included in the CARES Act, which was signed into law on Friday, March 27th, 2020, are provisions related to tax-deferred retirement plans/IRAs and minimum distribution requirements for 2020. Specifically, regardless of your age, all minimum distribution requirements from tax-deferred retirement plans and IRAs have been suspended for 2020. Of course, you can take withdrawals if…
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On Friday, December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. The broad intent of the legislation is to make it easier for families to save more for retirement, but it also includes several unfavorable provisions intended to offset the loss of tax revenue likely to result…
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After a down year in 2018, the outlook for stocks in 2019 was not positive. The markets had experienced an abrupt decline in the last quarter of 2018, and many thought the bull market that had begun in March of 2009 was coming to an end. But those who stayed invested were rewarded with a…
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Reprinted with permission from Schanel and Associates, CPA. www.schanelcpa.com. Original Post: October 04, 2019 When an investor sells a stock or mutual fund that produces a loss, this capital loss reduces taxable income by first offsetting any capital gains, and then by reducing taxable income up to $3,000. Net capital losses in excess of…
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