Retirement
The most frequently asked tax questions related to Retirement
Is my annual contribution to my Roth IRA deductible?
Asked Monday, October 16, 2000 by an anonymous userCPA Answer:
No. Your annual contribution to a Roth IRA is not a deduction on your tax return. Distributions at age 70 and a half are not requires. Contributions after age 70 are allowed. Distributions are not taxable. IRA minimum distribution rules do not apply.
Is there a listing available for choosing a nursing home ?
Asked Thursday, October 12, 2000 by an anonymous userCPA Answer:
Visit http://www.medicare.gov/Nursing/Overview.asp to get current information from the US Government .
What is a 401(K) plan ?
Asked Wednesday, October 04, 2000 by an anonymous userCPA Answer:
401(K) plans are designed to encourage long term retirement savings by employees. In some plans, the employer may contribute a matching percentage to the employee's contribution amount. 401(K) plans must meet a variety of IRS rules. Speak to your local CPA about setting up a 401(K) plan for your company.
Social Security - Early Receipt Choice
Asked Sunday, October 01, 2000 by an anonymous userCPA Answer:
You will take a permanent monthly reduction in benefits if you begin collecting Social Security before full retirement (ages 62-67 depending on your date of birth).
You can go to the SSA website and read the "Retirement Information For Medicare Beneficiaries" fact sheet, or use the SSA Retirement Estimator to see how different retirement dates will affect your benefit amount and also find other information you can use to help you decide when to start your benefits in the "Near Retirement" section of the Retirement Planner.
The SSA website is http://www.ssa.gov
You can go to the SSA website and read the "Retirement Information For Medicare Beneficiaries" fact sheet, or use the SSA Retirement Estimator to see how different retirement dates will affect your benefit amount and also find other information you can use to help you decide when to start your benefits in the "Near Retirement" section of the Retirement Planner.
The SSA website is http://www.ssa.gov
Social Security - Switching
Asked Sunday, October 01, 2000 by an anonymous userCPA Answer:
You can collect reduced benefits based upon your spouse's earnings record today and switch them to your work record when you reach full retirement age. This could increase your monthly check, but it may not. The benefits you receive depends upon your work history.
What is a 457 Plan?
Asked Sunday, September 24, 2000 by an anonymous userCPA Answer:
A 457 Plan is a nonqualified salary reduction retirement plan that is available to government workers, including municipalities. There is no tax on the money you save through this plan or on what it earns until you take the money out. The catch is you can't take any money until you leave your job.
I'm a government worker and am thinking about retiring. I have contributed to a 457 Plan and want to know what my options are for taking this money?
Asked Sunday, September 24, 2000 by an anonymous userCPA Answer:
When you leave your job, you have basically three options: You can take all the money and pay tax on the money without penalty; If you are under 70 1/2, you can take installments on the money; or if you are under 70 1/2 you can leave the money in the plan. To determine which choice is suitable for your situation, please contact a CPA in your area.
Are my estate planning fees deductible?
Asked Saturday, September 23, 2000 by an anonymous userCPA Answer:
Yes. Services for tax advice and/or income producing property are fully deductible as an itemized deduction, subject to the 2% limitation. If tax and non-tax items are discussed with your CPA or lawyer, try to get an itemized bill segregating the tax and non-taxable components.
I'm over 71 years old and still work. Can I contribute to a Roth IRA ?
Asked Saturday, September 09, 2000 by an anonymous userCPA Answer:
Yes. Roth IRA contributions can be made at any age providing you have earned income. However, they are subject to various income limitations.