We believe there are certain principles to investing that you should know. Check out the rest of the 12-part series as we release them!
What is an RMD (required minimum distribution)? An RMD is the minimum amount that must be withdrawn from a retirement account each year
Who is a spouse beneficiary? A spouse beneficiary must be married to the account owner at the time of the account owner’s death, and he or she must be named on the beneficiary form (or inherit directly through the document default provisions). A spouse beneficiary has a number of unique options.
Retirement accounts and divorce. When a divorce occurs, the financial assets of a couple, including their retirement accounts, are often split.
Can children have IRAs? There is no minimum age for having an IRA. Due to the power of compound interest, saving tax-free in an IRA from childhood can provide a significant head start on financial security.
What is the 10% penalty? A 10% early distribution penalty applies to taxable distributions made before age 59 ½. Distributions made after age 59 ½ are not subject to the 10% early distribution penalty.
How can I avoid making costly mistakes when I inherit an IRA from a person who was not my spouse? Inheriting an IRA can be a financial windfall, but it’s important to understand the complex, specific rules that apply to non-spouse IRA beneficiaries to avoid critical errors.
What is an HSA? An HSA is a tax-advantaged medical savings account that can be used tax-free for qualified medical expenses.
What does the basic process entail? An income tax refund can be directly deposited to an IRA up to the annual contribution limit. The contribution limit is $6,000 ($7,000 for individuals age 50 or older) for 2019 and 2020.
