You might assume your chances of being investigated by the IRS are low as you relax in retirement, hosting dinner parties for friends and family and taking more vacations than you ever had to work. After all, it’s clear why the IRS would bother reviewing your tax returns once you’re in your golden years.
A lesser refund could be in store for you this year due to changes in IRS tax credits. The IRS has warned that the elimination of tax advantages from the COVID-19 period may cause many Americans to receive lesser refunds or have larger amounts owed on their tax returns this year.
Eventually, after years or even decades of saving, you will need to begin withdrawing and taxing the funds from your retirement accounts. RMDs are required to be taken at age 73 starting in 2023 and at age 75 beginning in 2033. If you make a mistake, it could have serious financial repercussions.
The New Year usually brings new resolutions that have the goal of improving one’s life. An estate plan is one of the best ways to improve your life and your family. Many individuals don’t have an estate plan, and an early estate plan may assist in assuring a stress-free retirement. Remember that proper estate planning will go a long way toward protecting and growing your wealth over time, which is why you should have one.
The last year has been difficult for retirement savings. With the United States already experiencing a retirement crisis, the decline in the stock and bond markets impacted practically every prominent 401(k) fund this year, causing balances in workplace retirement savings plans to decrease. Adding insult to injury, rapid inflation further eroded reserves.
How would you like your retirement to look? Travel? Golf? Getting together as a family? You’ve worked hard and earned the right to do as you want after a long and successful career. Okay, but can you afford it?
Retirement-age individuals can still benefit financially from helping others this year by making charitable contributions that qualify for tax deductions. But time is of the essence.
Without a 401(k) via your employer, saving enough money for retirement can be difficult, but it is certainly doable. If you want your money to grow tax-free, you can open a savings account or a Roth IRA instead. If 2022 is still a year in which you hope to contribute to your retirement fund, here are options to consider.
Saving for retirement is one of many things when the saying “better late than never” is applicable.
You can take steps to make up for “lost time” so you can live comfortably in your retirement years, even if you are already halfway through retirement and haven’t started saving.
Checking the “Where’s My Refund” function on the IRS website, taxpayers have likely received the phrase “Your return is being processed.” In rare instances, this warning may remain for weeks or months. The message may be frustrating if it continues appearing repeatedly, but it contains good news. According to Howard Samuels, a certified public accountant … Read more