Retirement

When it comes to tax planning rules, many retirees often ask one question in particular: is a pension considered earned income? The short answer is no—pension income is generally not classified as earned income for tax purposes. Unlike wages, salaries, tips and self-employment earnings, which qualify as earned income, pensions…

Many retirees receive distributions from retirement accounts, pensions, dividends or even part-time work. Should this income exceed immediate spending needs, retirees often look to put the excess back to work. Thoughtfully reinvesting surplus retirement income can help preserve wealth, protect against inflation and even grow your financial resources over time.…

The comparison between HSA vs. Roth IRA for retirement planning isn’t about choosing one over the other. Rather, it’s about understanding how each might fit into your comprehensive financial plan. Your health needs, current tax situation and retirement timeline are all relevant in determining the optimal strategy. As healthcare costs…

For individuals who require long-term care but earn too much income to qualify for Medicaid, a type of trust called a Miller Trust can help bridge the gap. Sometimes called a qualified income trust (QIT), this type of trust allows individuals to meet Medicaid’s income requirements while still using their…

While President Donald Trump has consistently pledged not to raise the retirement age, several influential Republican factions have promoted adjustments that would shift that timeline. And it’s not entirely up to the president. Even if Trump sticks by his prior commitments, a higher retirement age remains a possibility. Any change…

A new opportunity has emerged for families with leftover college savings: converting 529 plan funds to a Roth IRA. Previously, withdrawing 529 funds for non-educational expenses meant facing income tax and a 10% penalty on earnings, creating a dilemma for families whose children received scholarships or chose not to attend…

Deciding whether to stop Social Security and restart it later depends on your age and how long you have been receiving benefits. If you have been on Social Security for less than 12 months, you can apply to withdraw your application. This will essentially erase the claim. For those who…

Retirement is a major life decision and the timing can affect more than just your finances. While having enough money is important, other factors—like your health, mental well-being, social life and the type of work you do—also matter. Some research shows that when you retire may impact how long you…

As you progress through your career, your income investment strategy should evolve to balance growth opportunities with risk management. In your 20s and 30s, you might embrace more aggressive allocations. This means a higher percentage of stocks to capitalize on long-term growth potential. By your 40s and 50s, there’s a…

Becoming a 401(k) millionaire represents a significant milestone in retirement planning. According to recent data, the average age at which individuals attain this status is 59 years old, typically after 26 years of consistent contributions to their retirement plans. The length of time typically required to become a 401(k) millionaire…