Posts by Michele Cagan, CPA
Financial Advisor
Ask an Advisor: I’m 74 With $120k in My 401(k). Should I Get a Financial Planner to Help With RMDs?
I have a 401(k) with $120,000 in it. I’m 74 and getting the required minimum distribution at the end of each year. Do I need a retirement planner to help handle the withdrawal? – Susan While technically you don’t need a financial advisor to handle your retirement account withdrawals, it can be useful to talk… Read more…
Financial Advisor
Ask an Advisor: I’m 67 With $218k in an IRA. Should I Start My Withdrawals Now to Reduce Future RMD Taxes?
I’m turning 68 shortly and plan to wait to claim my Social Security at age 70 to maximize the monthly benefit. I also plan to retire at the end of the year, if not sooner (so in three months or less). Does withdrawing from my traditional IRAs (current balance is $215,000) to reduce the income… Read more…
Retirement
Ask an Advisor: I Made $310,000 Last Year and Have $546,000 in Retirement Savings, But My Spouse Doesn’t Work. How Can I Save More?
I am 48 years old. I made $310,000 last year and I currently have $546,000 in my retirement plan at work. My husband is on disability and doesn’t work and does not have a 401(k) plan. I wanted to open a Roth IRA but I read that I make too much money. What options do… Read more…
Financial Advisor
Ask an Advisor: How Can I Get the Biggest Benefit From an Electric Vehicle Tax Credit?
I purchased a Ford electric vehicle in February 2023. According to the IRS, it qualifies for a $6,843 tax credit. So in order to get my taxes to this amount, I’m not paying estimated taxes and will take a little more than my required minimum distribution from my IRA to get my tax liability up… Read more…
Financial Advisor
Ask an Advisor: We’re in Our Mid-50s and Have $2 Million in Our 401(k)s. Should We Pivot to Roth Contributions?
We are a dual-income couple in our mid-50s with over $2 million in our 401(k)s. Should we “sacrifice” the pre-tax benefit and switch to Roth contributions at work? -Wendy Like most tax-related questions, the answer is “it depends.” Based on… Read more…
Financial Advisor
Ask an Advisor: I Want to Give Money to My Son and Daughter-in-Law. How Much Money Can I Give Away Without ‘Incurring a Tax Issue With the IRS?’
How much money can I give to my son and daughter-in-law without incurring a tax issue with the IRS? -Irwin For 2023, you can give your son and daughter-in-law each $17,000 without having to deal with the IRS. But even… Read more…
Financial Advisor
Ask an Advisor: ‘How Can I Mitigate This Situation?’ My Tax Bill Is Huge Because My Investment Accounts Don’t Withhold Capital Gains
My investment accounts don’t withhold taxes from my capital gains, which is causing me to owe large amounts when I file my returns. How can I mitigate this situation? -David As capital gains distributions are unpredictable and usually unknown until… Read more…
Financial Advisor
Ask an Advisor: Can a Single Financial Advising Firm Address ‘My Complete Spectrum of Financial Concerns?’
Can one individual or organization cover my complete spectrum of financial concerns, including investment diversification and maximum returns, income tax optimization, required minimum distribution (RMD) management, and steady income cash flow? Is there a good way to survey fiduciary candidates… Read more…
Financial Advisor
Ask an Advisor: With Only a Few Hundred Dollars, How Do I Get Started Investing for Retirement?
Is there a way to start a retirement account with only a few hundred dollars, then add to the account each payday? -Dave So many people put off saving for retirement because they feel like they can’t contribute enough or… Read more…
Financial Advisor
Ask an Advisor: Help Me Understand the Math. How Does Donating to Charity Reduce My Taxes?
If I give $50,000 in cash to a charity, does that lower my taxable adjusted gross income (AGI) by $50,000? So if my adjusted gross income was $100,000, and I gave $50,000 to charity, is my taxable income now $50,000?… Read more…