Retirement planning

TOPICS / PERSONAL FINANCIAL PLANNING

September 1, 2008

Abusive Insurance and Retirement Plans

EXECUTIVE SUMMARY Some of the listed transactions CPA tax practitioners are most likely to encounter are employee benefit insurance plans that the IRS has deemed abusive. Many of these plans have been sold by promoters in conjunction with life insurance companies. As long ago as 1984, with the addition of

July 1, 2008

Retirement Planning

The AICPA and Department of Labor have released an online video, “Choosing a Retirement Solution for Your Small Business,” to assist small employers and accountants with employee retirement program options. Using the real-life experiences of four small employers who operate Simplified Employee Pension, SIMPLE IRA and 401(k) plans, the video

July 1, 2008

Wealth Harvesting: More Than Just Retirement or Succession Planning

EXECUTIVE SUMMARY The first step in developing a wealth harvesting plan is to identify the client’s departure objectives, focusing on four categories: providing for the client and the people and causes they care about; ensuring a smooth and successful succession; protecting assets; and developing tax-smart strategies. It takes a variety

May 1, 2008

Data Point: $225,000

Savings a 65-year-old couple retiring this year needs to cover medical costs in retirement, a 4.7% increase over the 2007 estimate of $215,000. Source: Fidelity Investments, www.fidelity.com.

March 1, 2008

A 401(k) Tax Break That’s Often No Break

Withdrawing company stock from a 401(k) to take advantage of a tax break called net unrealized appreciation (NUA) sounds like a no-lose proposition, and most advisers tell their eligible clients to go for it. But there’s just one big problem: When you run the numbers, this maneuver

February 1, 2008

Automatic Enrollment a Win-Win

A study by Retirement Made Simpler, a coalition formed by the AARP, the Financial Industry Regulatory Authority and the Retirement Security Project (RSP), found strong employee approval of automatic enrollment in employer-sponsored retirement plans. Employees surveyed were nearly unanimous in their support of being automatically enrolled—98% were happy their employer

January 1, 2008

Women Worse Off in Retirement

FINANCIAL PLANNINGA recent Government Accountability Office report found that while almost 90% of men and women age 65 and older received Social Security benefits, men’s median annual income from the source was almost $3,800 higher than women’s ($12,583 vs. $8,799). Among most of the population age 65 or older, Social

August 1, 2007

Managed Accounts

EXECUTIVE SUMMARY A growing number of companies are beginning to offer employees professionally managed accounts for 401(k) assets. In these managed accounts, an independent investment manager handles investment decisions, makes portfolio changes as needed based on each participant’s specific needs and risk tolerance, and rebalances the

July 1, 2007

Gender Gap in Financial Preparedness

The latest Retirement Fitness Survey reported about six out of 10 women felt worried (58%) and uncertain (61%) about planning financially for retirement. Married women appeared less prepared than their unmarried counterparts, with 39% vs. 27% not knowing how much they had saved for retirement (20% of married men and

May 1, 2007

Dirty Little Secrets of 401(k) Plan Fees

In September 2006, eight Fortune 500 companies were named in class action lawsuits alleging they failed to monitor and disclose 401(k) fees under so-called revenue-sharing arrangements. To protect your company or client, watch for these red flags when reviewing a 401(k) plan offering: Determine how expenses in

May 1, 2007

Taking Stock of ESPPs

EXECUTIVE SUMMARY Employees of corporations with an employee stock purchase plan (ESPP) often fail to participate fully in the plan because they don’t understand why it can be a good deal. Many plans offer a purchase discount of as much as 15%. Effectively, the discount can