IRAs, 401k, 403b

Your IRA, or 401(k), is most likely your largest financial asset and you are counting on it for retirement income. The most costly mistake in managing this money is not in how it’s invested, it’s account transfers or rollovers, beneficiary designations, and required minimum distributions.

If one wrong transaction is made with an IRA or 401(k), it is most likely irreversible and causes tax liabilities and possibly penalties.

Questions we can answer

IRAs = Retirement Income

IRAs and 401(k)s were created for retirement living expenses as a supplement to Social Security. Cardinal can help you outline strategies turning this money into income or, if not needed for income, consider strategies for a future guaranteed income, for you or your loved ones.

Cardinal Lessons on IRAs

IRS Wants Their Tax Money

In this informative episode of the Cardinal series, we jump into the world of Required Minimum Distributions (RMDs), a crucial aspect of retirement planning that begins at age 73 for most individuals. Our financial planning experts explain what RMDs are, the rules governing them, and effective strategies to manage them within your retirement plan. Whether you're approaching your RMD age or already navigating through it, our insights will help demystify the process and optimize your financial approach.

Inherited IRA? Which Beneficiary Are You?

Today's Cardinal lesson is on a crucial topic that's been repeatedly discussed due to its significance: Inherited IRAs. The Secure Act and its successor, Secure Act 2.0, have brought notable changes that affect how these IRAs are handled, specifically accelerating tax payments upon inheriting an IRA. Our aim in this video is to clarify these intricate rules and help you understand your position as a beneficiary.

7 Worries – Retirement Planning

Welcome to our special video where we explore the essence of what we do at Cardinal. Our journey on YouTube started somewhat accidentally, but it's blossomed into a thriving community. Today, we focus on the core of our mission: addressing the seven critical worries in retirement. These worries aren't just about what keeps you up at night; they're about making informed decisions in pivotal areas of your retirement planning, often in your 60s, but sometimes earlier or later.

Getting the Money Out of a Roth IRA

In today's episode, we dive into a rarely discussed but crucial aspect of Roth IRA management: withdrawing funds. Unlike our previous videos focusing on contributions and tax implications, this episode delves into the smartest ways to withdraw from your Roth IRA.

Early Distribution of IRA 401k Balance

Today Hans and Tom delve deep into an often overlooked area of retirement planning - considering the potential future of income taxes. They explore the current state of the national debt and consider how this might affect tax rates in the years to come. With nearly $33 trillion in national debt and growing, the implications for your IRA and 401k are worth noting.

Inherited IRA – IRS Change to 10 Year Rule

Today, we break down the latest IRS memorandum (#54) on inherited IRAs and its implications on beneficiaries. With changes brought in by the Secure Act a few years ago, it's essential to understand how these updates affect your retirement planning. We'll help you understand which category of beneficiary you fall under, what this new ruling means, and how it could affect your future financial plans.

Retirees Running Out of Money Late in Life

In today's episode, Tom and I dive deep into what many consider the greatest retirement fear: running out of money. It's the elephant in the room that many of our clients are hesitant to address initially, but it's a fear that dictates their behaviors, decisions, and overall retirement planning. Remember, the right knowledge can pave the path to a stress-free retirement. #RetirementPlanning #FinancialSecurity #AvoidingRetirementPitfalls

Ed Slott IRA 401k Tax Strategy Training

Join Tom and me as we delve into the world of financial training, focusing on our experiences as members of the Ed Slott Elite Advisor Group. For over a decade, we have attended these impactful meetings twice a year to enhance our understanding of financial planning, retirement strategies, and changes in tax laws. In this video, we discuss our recent April session, covering topics such as IRA planning, the Secure Act 2.0, and the importance of avoiding a potential tax bomb for your beneficiaries. We underscore the vital role these meetings play in our practice, enabling us to offer sophisticated, informed advice to our clients. Discover how our commitment to ongoing education can support your financial goals.

Back Door Roth IRA

I wanted to share an informative video with you that discusses strategies to increase your Roth IRA or 401k balance. These strategies can help you maximize your retirement savings while potentially reducing future tax burdens. The video provides valuable insights into two specific techniques: the backdoor Roth IRA strategy and the mega backdoor Roth IRA strategy.

RMD Aggregation

Required Minimum Distributions (aka RMDs) from IRAs start at age 73 for your own accounts and possibly earlier for inherited IRAs. Roth accounts have no RMDs during your lifetime. If you have more than one traditional IRA, you can aggregate RMDs from several IRAs and take it all out of one. You might have investments in one IRA that you don?t want to liquidate and you may have cash available in another. The video goes through the various types of retirement accounts and points out where you can aggregate and where it is not allowed. Mistakes can be costly. Seek professional help.

RMD Strategy Explained

Required Minimum Distributions (RMDs) from IRAs and 401k?s start at age 73. It?s easy to just ignore planning for RMDs in your 60s. 73 comes quickly and you?re forced to pay taxes every year on Required Minimum Distributions. It?s too late to convert them to a Roth. We recommend starting distributions soon after retirement and converting them to Roth if you don?t need the money to live. Watch the video!

Seven Worries in Retirement Explained

The SEVEN WORRIES in retirement are Social Security, Medicare, Long-Term Care, IRA/401k, Retirement Income and Investment, Estate Planning, and Taxes for Retirees. Each of them require you to understand and deal with one or more federal & state agencies and programs. The Social Security Administration, Health & Human Services, IRS, State Tax Authority, State Insurance Department???.All SEVEN WORRIES come at you when facing retirement and they?re mixed together like alphabet soup! Lots of government regulations, decisions to make, acronyms, sales people???.Our business at Cardinal is making sense of the SEVEN WORRIES and helping you develop a strategy to deal with all SEVEN of them. We are licensed in 50 states and DC and serve clients by ZOOM and phone.

The Cardinal Guide To: IRAs

Listen to learn:

Transfer IRA or 401(k) money from custodian to custodian. Don’t touch the money unless you want to risk paying taxes on all of it.

Update your beneficiary designations regularly. IRA and 401(k) money passes straight to the named beneficiary after death, bypassing the will and probate.

Required Minimum Distributions (RMDs) start at age 72 now that the Secure Act is law. In simple terms, you have postponed taxes in your IRA or 401(k) for years, and the government wants their tax money. RMDs are calculated based on the amount in your IRA and 401(k) and your estimated life expectancy. Failure to withdraw the appropriate RMDs will cause penalties as much as 50% of the shortfall.

RMDs can significantly increase your tax bill, resulting in taxes on income from Social Security and Medicare’s IRMAA. Qualified Charitable Distributions and Roth IRA conversions are strategies to lower tax from RMDs.

Stockpiling money in an IRA, taking only RMDs, to create an inheritance for your kids isn’t a smart estate planning strategy. There are ways to pay the taxes during your lifetime and leave tax-free money to your heirs.

IRAs are commonly one of the first places adult children go to pay mom or dad’s long term care bill. IRA withdrawals are taxable as ordinary income, and your long term care bill can create a corresponding tax deduction as a medical expense. But you need smart planning in order to optimize using your IRA for long term care. There are long term care insurance policies you can roll part of your IRA into for comprehensive long term care coverage. Cardinal Advisors can help you turn your IRA and 401k into pension payments over time.

If you take money from your IRA before age 59 ½ , you will incur very large penalties in addition to the tax. There are exceptions to the early withdrawal penalty, but IRA and 401(k)s should be your last resort in a financial emergency.

Certified Public Accountant Ed Slott has developed a reputation as “America’s IRA expert” (see IRAHELP.com). Hans partnered with Ed and completed IRA-specific training with a goal to help clients with their IRAs and 401(k)s beyond what he learned as a Certified Financial Planner™ professional . Don’t try IRA planning on your own. Seek an advisor and attorney who know what they’re doing with IRAs.