Once a year, the IRS tells retirees with traditional IRAs and 401(k)s the smallest amount they must withdraw. A surprising number of them hear it as the largest amount they are allowed to spend. Unfortunately, some do not hear anything. A recent Vanguard survey of retirement account holders found that 44 percent of those who […]
Taxes are on sale. It just does not feel like it. Taxes are on sale, although few people would describe them that way. Measured against the last eighty years, the federal income tax rates most Americans pay are close to the lowest on record. Most households would nonetheless swear they are paying more than ever, […]
With the midterm elections a few weeks away, Social Security legislation has been piling up in Congress. Seven bills introduced since June show how wide the range of ideas has become. Some would raise taxes on high earners, and others would simply let grieving families apply for survivor benefits online. None of them has moved […]
If you’ve already maxed out your 401(k) and other tax-deferred accounts, the next question is usually where to put the rest. For a lot of high earners, the answer they skip over is the Roth IRA — skipped because they assume they earn too much to use one. On paper, they’re right. But there’s a […]