Every so often, it’s smart to methodically go through your estate planning documents and see if any tweaks are needed. Here’s a checklist to guide you through that mission.
Only about 35% of Americans have heard of 529 plans, according to the College Savings Plans Network. Of those, a mere one in four connect the plans with higher education savings.
My sister passed away. Her only possession was her home, which still has a mortgage and she left it to my son and daughter, her niece and nephew. What inheritance tax will there be?
Elder Law is made up of three major categories, which can be broken down further into deeper topics.
Besides the third round of stimulus payments, multiple expanded tax credits for parents are perhaps the most widely known provisions of the COVID-19 relief bill that President Joe Biden signed into law on March 11. But the expansive legislation, formally known as the American Rescue Plan Act of 2021, contains provisions that affect Americans of all ages, even retirees.
On its surface, Social Security seems like a fairly straightforward program. You and your employer pay a tax based on your earnings, while you work. When you retire, you get a lifelong income stream that’s somewhat tied to how much you paid into the system.
One of the best ways to prepare for retirement is to set aside money in a tax-advantaged retirement account. Hopefully, you have done so year after year and built a nice nest egg.
My mother died this year and when my sister and I went to sell her home, we found out that without our knowledge, our mom had put us on the title as joint owners, even though neither of us had put any money into the purchase of the home some 30 years ago. Are we now on the hook for taxes on the gain in house value?
For new retirees—especially those on a fixed income—it’s more important than ever to take full advantage of every tax break available. After all, you have to stretch out your retirement savings to cover the rest of your life. However, holding on to your money is becoming more difficult these days, thanks to the economic problems caused by the coronavirus pandemic. That’s why retirees really need to be on top of their tax situation.
Open an HSA in minutes to help you save on taxes, cover medical expenses and grow your retirement nest egg.