Time Running Out for 2009 RMD Relief
November 26, 2009
People who received unwanted RMDs in 2009 have just a few days left to roll those RMDs back into their IRAs, thus eliminating the tax bill from the original distribution.
RMDs Suspended
The Worker, Retiree, and Employer Recovery Act of 2008 (WRERA) suspended required minimum distributions (RMDs) for 2009. If you’re not familiar with RMDs, these are distributions that you are required to take from your traditional IRA and employer sponsored plans (401Ks) beginning at age 70 ½.
This is a one-time suspension of RMDs, effective for 2009 only. This suspension was created in response to the sharp declines in the stock market, with the purpose of allowing individuals to keep the funds invested in their IRAs instead of being forced to take distributions when the market, and thus their account values, were significantly down.
Unemployment Benefits To Be Extended
November 14, 2009
There’s at least a glimmer of hope for people who are currently unemployed. The Senate voted on Wednesday to extend unemployment benefits by up to 20 weeks for people currently collecting unemployment. Most states will receive a 14 week extension, but states with unemployment rates in excess of 8.5% will receive an additional 6 weeks, for a total extension of 20 weeks.
People who have already exhausted their unemployment benefits can reapply for additional benefits under this bill.
The bill still has to get through the House and then must be signed by the President, but it is not expected to change much before the final passing. This is expected to be the last extension for unemployment benefits.
Reverse Mortgages – What Should You and Your Parents Know Before Applying?
November 1, 2009
The number of reverse mortgages backed by the government jumped nearly 20 percent in March and April (2009) alone from the same period in 2008. At a time when seniors have seen their retirement assets depleted by market losses, tapping home equity has been a safety net. But it can be a risky one.
If your parents are at least 62 years of age and have significant equity in their home, a reverse mortgage can turn that equity into tax-free cash without forcing them to move or make a monthly payment.
If it’s right for them, it’s a worthwhile financial tool. If not, they could make some serious mistakes with their financial future.