Oliver Asset Management

Ed Slott's Top 10 IRA Rollover Mistakes

Tue, 31 Mar 2026 14:35:30 GMT

1. IRA-to-IRA Rollovers and Roth IRA-to-Roth IRA Rollovers

Mistakes:

Using 60-day IRA rollovers instead of using transfers to move IRA funds
Once-per-year rule is for all IRAs and Roth IRAs
IRS has no authority to correct these mistakes
New client rollover mistakes - not asking about prior rollovers
Not knowing the exceptions to the once-per-year IRA rollover rule

2. Non-Spouse Rollovers are NOT Permitted

Mistakes:

Non-spouse beneficiary cannot do a rollover
Taking a lump-sum distribution
Putting a decedent's IRA funds into your own IRA
Paying out the entire IRA to a trust beneficiary

3. Spousal Rollovers

Mistakes:

Spousal rollover before age 59½
Forgetting to do the spousal rollover at age 59½
Not naming a successor beneficiary of the inherited IRA

4. 401(k) Rollovers to IRAs

Mistakes:

Not reviewing all options (IRA rollover is not the only option.)
Receiving a distribution personally and being subject to 20% withholding
Not knowing the creditor protection of IRAs in your state
Not first asking about the NUA (net unrealized appreciation) tax break
Rolling over highly appreciated company stock to an IRA
Not allocating the after-tax portion (basis) to a Roth IRA tax free

5. After-Tax Rollovers From Plans to IRAs and Roth IRAs

Mistakes:

Not being aware of the allocation rules that allow the tax-free Roth conversion of after-tax plan funds
Failing to allocate pre-tax and after-tax amounts to the correct account
Rolling over all funds to a traditional IRA (Allocation rules do not apply to IRA distributions)
Choosing to receive all funds personally

6. Roth Conversions (Technically IRA-to-Roth Rollovers)

Mistakes:

Not advising on the income impact of a Roth conversions (other taxes may be triggered or tax benefits lost)
RMDs (required minimum distributions) cannot be converted
Choosing to receive all funds personally
SIMPLE IRA cannot be converted until after 2 years
Inherited IRAs cannot be converted, but inherited company plan funds can

7. In-Plan Roth Rollovers (401(k) to Roth 401(k) Conversions)

Mistakes:

Not asking if in-plan conversions are available in the plan
Not estimating the taxes due on the conversion
Not checking first if a Roth IRA conversion is available

8. Rollovers to Any Retirement Account (60-Day Rule)

Mistakes:

Losing track of the 60-day deadline
Not knowing about the 20% mandatory withholding from plans
Not knowing about the self-certification procedures for late rollovers
Depositing the funds into a non-IRA account
Choosing a 60-day rollover instead of a transfer

9. QDRO Rollovers in Divorce (From Plans Only) to Ex-Spouse as Alternate Payee

Mistakes:

Rolling over all of a qualified domestic relations order (QDRO) distribution to an IRA and then taking an IRA distribution before age 59½
Remember! A QDRO distribution is a 10% penalty exception, but only on distributions from the plans!
Not knowing that an IRA rollover voids the 10% penalty exception
Not knowing that QDROs do not apply to IRAs

10. Rollovers From IRAs Back to Plans

Mistakes:

Rolling over basis into the company plan
Only pre-tax funds can be rolled to the plan
Failing to convert remaining IRA basis to a Roth IRA
Not asking if your plan accepts IRA rollovers
Not first checking plan restrictions on accessing funds (Funds are now subject to plan rules.)

Avoiding Spousal Beneficiary Mistakes in 5 Easy Steps

Tue, 31 Mar 2026 14:23:01 GMT

Who is a spouse beneficiary?

A spouse beneficiary must be married to the account owner at the time of the account owner's death, and he or she must be named on the beneficiary form (or inherit directly through the document default provisions). A spouse beneficiary has a number of unique options.

#1: Split the inherited account if necessary.

A spouse beneficiary can take advantage of the special spousal rules if they are the sole beneficiary of an IRA account. If other beneficiaries have been named, the spouse can still take advantage of these special provisions by transferring their portion of the inherited IRA to a separate account by December 31 of the year following the year of the IRA owner's death.

#2: Remaining a beneficiary.

A spouse beneficiary who keeps the account as an inherited account can defer RMDs until the year the deceased owner would have turned 73 and can use the Uniform Lifetime Table to calculate RMDs. This is automatic if the deceased owner died before his required beginning date for starting RMDs. The account should be retitled as a properly titled inherited IRA.

#3: Transfer the inherited IRA into a spouse beneficiary's account.

A younger spouse beneficiary should generally set up an inherited IRA in their own name. Once a younger spouse beneficiary reaches age 59½, there's usually no advantage to remaining a beneficiary, and a spousal rollover should be done. NO other beneficiary has this option. By doing this rollover, a surviving spouse ensures that eligible designated beneficiaries will be able to stretch distributions over their own life expectancies.

#4: Name new beneficiaries.

A surviving spouse should name their own beneficiaries. If no beneficiaries have been named and the surviving spouse dies, the remaining assets will pass according to the default provisions in the custodial document. This is frequently the estate of the now-deceased spouse, which could require a shorter payout period for beneficiaries or add unnecessary time and expenses by tying the assets up in probate.

#5: Consider a disclaimer.

Before taking any action regarding an inherited IRA, a surviving spouse should evaluate whether a full or partial disclaimer would be advantageous. By using a disclaimer, some or all of the inherited IRA can be passed to contingent beneficiaries.

Using a Tax Refund to Fund an IRA

Fri, 27 Feb 2026 17:28:42 GMT

What does the basic process entail?

An income tax refund can be directly deposited to an IRA up to the annual contribution limit. The contribution limit is $7,000 ($8,000 if age 50 or over) for 2025 and $7,500 ($8,600 if age 50 or over) for 2026. It can also be split among multiple accounts.

#1: It is tax time!

Prepare your tax return for the year.

#2: Determine the refund amount.

Once you know how big your refund will be, decide how much, if any, you would like to contribute to your IRA or Roth IRA up to the maximum annual contribution allowed.

#3: One, two, three.

A refund going to only one account can be done directly on IRS Form 1040. Prepare IRS Form 8888 to direct the refund to up to three accounts.

#4: Watch out!

If you use Form 8888, pay attention to the four cautions provided by the IRS on the instructions to ensure that you do not fall into any of those traps. The form can be found on the IRS’ website (www.irs.gov).

#5: Follow-up, follow-up, follow-up.

If the IRA deposit is meant to be for the prior year, make sure the institution will code it that way, and that it is received in time. If the refund amount is adjusted for math errors or tax adjustments, check which accounts on the form are affected. You may need to do an amended return if the IRA deposit is adjusted. If your refund is offset (e.g., because you owe past-due taxes), also check which accounts are affected. Again, you may need to do an amended return. If the funds go into the wrong account, deal with the institution to get the funds credited to the correct account.

Matching Consumers with Educated Financial Advisors

Tue, 24 Feb 2026 16:02:31 GMT

Avoiding Mistakes in a Divorce

Retirement accounts and divorce. When a divorce occurs, the financial assets of a couple, including their retirement accounts, are often split. If mistakes are made during this process, the stress of a divorce can be compounded when one or both spouses find that they are subject to unnecessary taxes or penalties.

#1: IRAs in divorce.

To properly divide an IRA as a result of a divorce, specific language on the structure of “who gets what” should be included in the marital settlement agreement (MSA) or other divorce agreement. A copy of this executed agreement should be given to the IRA custodian. The money should NOT simply be withdrawn from the IRA and given to the other spouse, as this would be treated as a taxable distribution for the IRA owner. The funds should instead be transferred to the receiving spouse’s IRA.

#2: ERISA plans in divorce.

ERISA plans can’t be split by an MSA or divorce agreement. They require a special court order, known as a Qualified Domestic Relations Order (QDRO). Once a QDRO has been issued, it should be sent to the ERISA plan’s administrator. The terms of the plan will determine when the spouse receives the funds. In some plans, a lump-sum distribution will be available immediately, while in other plans, benefits may not be payable until the ex-spouse has a triggering

event.

#3: What to do with the received funds.

If you are receiving a distribution pursuant to a QDRO, you will want to consider if you will be using any of the funds prior to age 59 ½. Funds received directly from a plan under a QDRO are exempt from the 10% penalty. If you roll those funds over to an IRA and later take a distribution prior to age 59 ½, the 10% early distribution penalty will apply.

#4: Name new/update beneficiaries.

One of the most common mistakes after a divorce is the failure to properly update beneficiary forms. This is NOT something that should be overlooked. There have been many documented cases where a failure to properly update beneficiary forms led to an ex-spouse receiving funds that were intended for children or even a new spouse. DON’T let this

happen to you.

#5: Reassess retirement preparedness.

For many, a divorce is an emotionally draining and traumatic event. But for some, the emotional impact is compounded by a significant change to personal finances. So just like any other major life event, it’s beneficial to reevaluate your retirement and financial plans to determine the best course of action.

How to Find the Right Financial Advisor: 5 Steps That Matter

Tue, 24 Feb 2026 15:57:20 GMT

Choosing the Right Financial Advisor

Why do you need a financial advisor? Today’s financial landscape is as complicated as ever. A good financial advisor can help you navigate this complexity so that you can make educated, informed decisions on what is best for you and your family.

#1: Ask for references.

Ask your CPA or estate planning attorney. In many cases, they already have a working relationship with a financial advisor. You should also consider asking friends and family members for a recommendation if they are in a similar stage of life and financial situation.

#2: Don’t overemphasize credentials.

can be earned with virtually no effort or education at all. The bottom line is that the decision of what financial advisor to hire should be made based on more than just the letters after their name.

#3: Find a specialist.

The term “Financial Advisor” is highly generic and can be used to describe many different types of professionals in the financial services field. When shopping around, find an advisor who specializes in your area of concern. If you had a heart problem, would you rather see your family doctor or a cardiologist? The same principle should apply to your financial advisor.

#4: Ask about education/training.

see the manual from the last educational conference he or she attended. If it has more sales information than technical information… Beware!

#5: Don’t be afraid to get a second opinion.

they’re probably not confident in the information and recommendations they provided to you in the first place.

Choosing the Right Tax Professional in 5 Easy Steps

Thu, 22 Jan 2026 15:24:30 GMT

Why do you need a tax professional?

Managing taxes during retirement will be the single most important factor in determining your ultimate lifestyle. In addition to a financial planner and estate planning attorney, a qualified tax professional is an integral part of any planning team.

#1: Ask for references.

Have you ever stopped to think about how you picked your doctor or mechanic? Chances are you chose them because a friend or family member recommended them based upon a positive experience. The same should be true of your tax professional. Often times, people are afraid to ask for advice from those closest to them when finances are involved, but picking the right tax professional is too big of a decision, so “do your homework” and ask around.

#2: Check for credentials.

Not all tax preparers are CPAs. In fact, in many states, anyone can prepare tax returns and call themselves a tax professional. Most serious tax professionals will either be a CPA or an EA (Enrolled Agent). However, this does not necessarily mean that they are competent enough in the retirement area to assist you.

#3: Ask about experience.

In most cases, you would opt for experience over a novice. Do you really think your choice of a tax professional is that different? Sometimes, there is no substitute for experience. Ask your tax professional about cases similar to your own, how often they deal with them and how they typically handle them.

#4: Ask about education/training.

When most people think “CPA,” they think tax expert. But, the rules governing retirement accounts are highly complex and are constantly changing. If your tax professional is serious about this area of retirement planning, they will make sure to stay up-to-date on the latest tax law changes. Make sure to ask about the last conference or continuing education class they have attended on retirement planning.

#5: Ask about continuity.

Planning to maximize your retirement distributions and transfer your wealth is not a one-time deal. Some of your most important decisions may not be made for years, or even decades. If you don’t expect your tax professional to still be working, you may want to ask what type of plan they have in place to make sure you will still receive the high level of advice you deserve when you need it the most.

A Guide to RMD Rules in 2026

Thu, 22 Jan 2026 15:18:42 GMT

New Rules Are Here.

On July 18, 2024, the IRS issued both final regulations under the 2020 SECURE Act and proposed regulations under the SECURE 2.0 Act of 2022. These long-awaited new regulations impact many parts of the required minimum distribution (RMD) rules for retirement accounts. The final regulations are effective for 2026, and the proposed regulations can be used immediately as guidance. Here are the highlights:

RMDs in the 10-Year Period / The “At Least As Rapidly Rule”: RETAINED

The IRS opted to retain this controversial rule. If the account holder died on or after his required beginning date (RBD) for starting RMDs, then annual RMD payments must continue to the beneficiary during the 10-year period.

Due to all the confusion this interpretation caused, the IRS previously waived RMDs during the 10-year period for beneficiaries for the years 2021, 2022, 2023, and 2024. Annual RMDs are now required starting in 2026. The penalty waivers do not extend the 10-year period, and any missed RMDs do not need to be made up.

Planning Note: Many beneficiaries subject to the 10-year rule will voluntarily take out more than the yearly RMD over the 10-year period. For those people, the annual RMD rule is irrelevant. Those who aren’t already taking out more than the annual RMD should consider doing so. If they don’t, they may be stuck with a large tax bill in the 10th year when the account must be emptied. The best IRA tax planning may be to ignore RMDs and think “maximum” – NOT “minimum.”

Eligible Designated Beneficiaries (EDBs): EXPANDED

The new regulations change the definition of “EDB”:

• The definition of a minor child of an IRA owner or plan participant is expanded to include a stepchild, adopted child or eligible foster child.

• Beneficiaries who have been found to be disabled for Social Security purposes are considered EDBs under a new safe harbor rule. The regulations also include a special definition of “disability” for children under 18.

• Documentation of chronic illness or disability is not required for IRA beneficiaries. Documentation for plan beneficiaries is still required, but it does not need to be overly detailed. For plan beneficiaries, documentation for 2020–2023 deaths is not required until 10/31/25.

Planning Note: These changes will make it easier for more beneficiaries to qualify as EDBs.

Year-of-Death RMD: DEADLINE EXTENDED

The final regulations confirm that when an IRA or plan account has multiple beneficiaries, any beneficiary can take the year-of-death RMD that the account owner did not take before death. Also, the deadline for taking a year-of-death RMD is extended until the end of the calendar year following the year of death.

Planning Note: This is good news for beneficiaries when one beneficiary, such as a charity, takes a lump sum distribution from the inherited account immediately after the death of the owner. That could satisfy the year-of-death RMD for all beneficiaries. Extra time to take an RMD may be helpful for beneficiaries of retirement owners who died late in the year without taking the full RMD or for beneficiaries who are overwhelmed after the death of a loved one.

Monitoring Concurrent RMDs: ELIMINATED

In earlier regulations proposed by the IRS, under certain circumstances an EDB who was older than the account owner was allowed to use the longer life expectancy of the deceased account holder to calculate RMDs. However, the EDB would have to simultaneously monitor her own shorter life expectancy and empty the inherited account when that life expectancy ran out. This is eliminated in the final regulations.

Planning Note: This complex and confusing requirement that unduly burdened elderly beneficiaries is no longer a concern.

Hypothetical RMD Rule for Spouse Beneficiaries: RETAINED

The final regulations retain the rule that prevents surviving spouse beneficiaries from avoiding RMDs in certain circumstances when a retirement account owner dies before his RBD. RMDs could be avoided by electing the 10-year payment rule and then later doing a spousal rollover. The new regulations close this loophole and require that any “hypothetical RMDs” that would have had to be taken (if not for the election of the 10-year rule) must be taken prior to a spousal rollover.

Planning Note: The continued existence of this rule shows the IRS means business when it comes to annual RMDs. This loophole remains firmly closed.

Trusts as Beneficiary: RULES LOOSENED

A trustee is no longer required to provide documentation to the IRA custodian to satisfy the see-through rules necessary for the trust to use either the 10-year rule or even a stretch payout for an EDB trust beneficiary.

For trust beneficiaries of plans, documentation must still be provided by October 31 of the year following the year of death. However, the plan administrator can require the trustee to provide either the trust document or a list of trust beneficiaries with their entitlements.

RMD rules can now be applied separately to see-through trust beneficiaries if the trust will be terminated and divided into separate subtrusts immediately upon the death of the account owner. This new rule expands the prior separate account rule that had applied only to certain special needs trusts. Each subtrust can now get the most favorable payout option without being separately named on the beneficiary form, as was required in the past.

Planning Note: Trusts are downgraded as a planning strategy after the SECURE Act, and the new regulations do not change that. However, the new final regulations do clear up some confusion and add some rules favorable to trust beneficiaries.

New Rules for Spouse Beneficiaries: CLARIFIED

Section 327 of SECURE 2.0 allows a surviving spouse to be treated as the deceased employee for purposes of the RMD rules. A spouse beneficiary may delay RMDs until the deceased spouse would have reached RMD age. This election is considered automatically made by the beneficiary when the account owner dies before the RBD.

The proposed regulations clarify that RMDs are then calculated using the Uniform Lifetime Table and the surviving spouse’s age. The account is considered an inherited account, so any distributions would not be subject to the 10% penalty for early distributions. A spousal rollover can still be done at any time.

Planning Note: This is welcome guidance on a perplexing provision of SECURE 2.0. Some spouse beneficiaries will still be able to delay RMDs, sometimes for years, as under the old rules. And their RMDs will be smaller because they can now use the Uniform Lifetime Table, which was never before allowed for any beneficiaries.

First RMD Year for Those Born in 1959: CLARIFIED

Due to a drafting error in SECURE 2.0, the RMD age for someone born in 1959 was unclear. The proposed regulations clarify that the first RMD year for someone born in 1959 is age 73.

Planning Note: The ages when RMDs must begin for retirement account owners are as follows:

Age 72 (or 70 ½) Born 1950 or earlier
Age 73 Born 1951 – 1959
Age 75 Born 1960 or later

Navigating the Health Care Taxes in 5 Easy Steps

Mon, 22 Dec 2025 22:39:45 GMT

What is considered investment income?

Investment Income: Interest, dividends, capital gains (long and short), annuities (not those in IRAs or company plans), royalty income, passive rental income, other passive activity income. NOT Investment Income: Wages and self-employment income, active trade/business income, distributions from IRAs, Roth IRAs and employer plans, excluded gain from the sale of a principal residence, municipal bond interest, proceeds of life insurance policies, veterans’ benefits, Social Security benefits, gains on the sale of an active interest in a partnership or S corporation.

#1: Identify the surtax income thresholds.

The first step is to know the MAGI (modified adjusted gross income) thresholds to avoid the 3.8% surtax on net investment income. They are as follows: Married Filing Jointly ($250,000); Individuals ($200,000); Married Filing Separately ($125,000); Trusts and Estates ($15,650 in 2025). Trusts and estates are hit particularly hard with the surtax kicking in at a much lower income level.

#2: Look at TAXABLE income.

Taxable income from all sources can push taxpayers over the MAGI threshold and cause their investment income to be subject to the 3.8% surtax. Income tax-free Roth distributions will NOT affect MAGI.

#3: Understand how much will be taxed.

The 3.8% surtax is imposed on the lesser of (1) net investment income or (2) the amount of MAGI over the applicable income threshold. Taxpayers with income below those MAGI levels will NOT be subject to this tax.

#4: Know other health care tax provisions.

The 3.8% surtax gets the attention, but there is also an additional 0.9% Medicare tax on wages and self-employment income over the MAGI thresholds. Also, medical expenses must exceed 7.5% of AGI to be deductible. That 7.5% also applies to the medical expense exception to the 10% penalty on early IRA or plan withdrawals.

#5: Discuss these tax planning points.

You need to know that while IRA and plan distributions are exempt from the surtax, taxable distributions from these accounts can push income over MAGI thresholds. Roth conversions can be a valuable tool to eliminate future taxable income, especially for taxpayers with significant investment income or a discretionary trust as their IRA beneficiary. However, conversions could push you above your threshold in the short-term. Salary deferrals (401(k)s for example) can reduce MAGI for the 3.8% surtax but NOT earned income for the 0.9% additional Medicare tax.

Avoiding 60-Day Rollover Mistakes in 5 Easy Steps

Mon, 22 Dec 2025 22:35:47 GMT

What is a 60-day rollover?

What is a 60-day rollover? A 60-day rollover is the distribution of funds from a qualifying retirement account payable to the account owner who then has 60 days to redeposit the funds into another qualifying retirement account.

#1: Do trustee-to-trustee transfers instead

The best way to avoid making a 60-day rollover mistake is to avoid 60-day rollovers! Transfer your funds directly to another retirement account. Not only does a direct transfer avoid any 60-day time problems, but if the rollover is coming from a 401(k) or other qualified plan, it will also avoid the mandatory 20% withholding requirement.

#2: Make checks payable to new IRA custodians.

Sometimes the only way a custodian will distribute an IRA or other retirement account money is in the form of a check. There is a special rule that allows a distribution by check to qualify as a direct rollover (and avoid the 60-day rules) when the check is made payable to the new IRA. For example, your check might read “Custodian X f/b/o (for benefit of) John Doe IRA.”

#3: Keep track of when you receive your distribution

Few people know when the 60-day clock actually begins. It starts when you receive the distribution. The few days between when the check was issued and when you actually received it may make all the difference in the world.

#4: Check to make sure the funds were deposited into the correct account.

A common mistake occurs when funds are accidentally deposited into a non-retirement account. Once you’ve deposited the funds or sent them to your financial institution, take five minutes out of your day to make sure they have arrived at their intended destination. If the mistake is discovered within 60 days it can be corrected.

#5: Be aware of the once-per-year IRA rollover rule.

You are limited in the number of 60-day rollovers you can make in a 365-day period. The once-per-year rollover rule applies only to 60-day rollovers from IRA to IRA or from Roth IRA to Roth IRA. Under the rule, once funds have been rolled over as a 60-day rollover, no other 60-day rollovers can be done by the account owner within the next 365 days. For this rule, IRAs and Roth IRAs are counted together.

The 6 Retirement Questions Smart People Ask

Thu, 04 Dec 2025 17:01:43 GMT

You’ve probably heard the saying, “There’s no such thing as a bad question.” But in retirement planning, the way you frame your question often determines the quality of your answer.

In this episode, we’ll share some common retirement questions, and how a simple reframing might lead to a more useful answer.

Here’s what we discuss in this episode:

�� A different way to think about long-term care decisions

�� Thinking about taxes beyond just “this year”

�� Social Security: why maximizing isn’t always the goal

�� Deciding whether to pay off mortgage debt

�� How bucket planning helps you manage (not avoid) risk

0:00 – Intro

1:50 – How much money to retire?

3:50 – Long-term care insurance

5:42 – Saving money on taxes

8:07 – Taking Social Security

12:09 – Mortgage decisions

14:57 – Managing risk

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Helpful Resources:

Learn more about the T.I.M.E. planning process by clicking here .

You can also schedule a free planning session with Frank Oliver and the team by clicking here .

Get your copy of Frank's book!

Year-End Checklist

Mon, 01 Dec 2025 16:34:40 GMT

It is important for you to take an active role in your retirement planning.

Life changes and events happen that require you to update your tax and estate plans. Use the information below to see how your planning might be affected. As you can see, many items require you to take action now.

Have You Had Any of These Life Events?

Birth, death, marriage, divorce, remarriage, or illness
Began collecting Social Security benefits
Layoff or new job
A child’s marriage or divorce
An inheritance or gift received
Creation of a trust
Moving, change of residence, home sale
Change of the IRA or plan custodian
Roth conversion

Make Sure to Talk to Your Beneficiaries About:

Post-death distribution options and required minimum distributions (RMDs)
Tax rules for inherited IRAs, including setting up properly-titled inherited IRAs
Spousal beneficiary options
Estate tax return deadlines
Tax benefits to beneficiaries, including net unrealized appreciation (NUA) and income in respect of a decedent (IRD) deduction

Milestone Ages:

50 – Catch-up contributions to retirement plans and IRAs
50 (or 25 years of service, if earlier) – Plan exception to 10% penalty for public safety employees
55 – Plan exception to 10% penalty
59½ – 10% penalty free withdrawals
70½ – Qualified charitable distributions from IRAs
73 – RMDs and required beginning date
75 – 403(b) exception

Year-End Checklist:

Evaluate the effect of this year’s market volatility.
Be sure to take your RMD from all applicable accounts.
Consider qualified charitable distributions.
Check that inherited IRAs with multiple beneficiaries are split by the end of the year following the year of the IRA owner’s death.
Check to see if enough money is withheld and/or paid in through estimated tax payments to avoid penalties. If you are short, consider withholding taxes from IRA distributions and replacing those funds within 60 days. (Watch out for the once-per-year rollover rule!)
Rollover IRA funds to company plans where the still-working exception applies before year’s end to avoid taking RMDs on those funds next year.
Estate planning – take advantage of annual exclusion gifts.

2026 New Year's Resolutions

Mon, 01 Dec 2025 16:17:26 GMT

This year...

I will obtain a copy of the IRA beneficiary form for each IRA I own.

I will make sure that I have named a primary beneficiary and a secondary

(contingent) beneficiary for each IRA I own.

If there are multiple beneficiaries on one IRA, I will make sure that each beneficiary’s share is clearly identified with a fraction, a percentage or the word “equally” if that is applicable.

I will make sure that the financial institution has my beneficiary selections on file and that their records agree with my choices.

I will keep a copy of all my IRA beneficiary forms and give copies to my financial advisor and attorney.

I will let my beneficiaries know where to locate my IRA beneficiary forms.

I will review my IRA beneficiary forms at least once each year to make sure they are correct and reflect any changes during the year due to new tax laws or major life events such as a death, birth, adoption, marriage, re-marriage or divorce.

I will check the IRA custodial document for every financial institution that holds my IRA funds. I will make sure that the financial institution allows the provisions that are important to me and my IRA beneficiaries.

I will do all of the above for any company retirement plan accounts I have, like 401(k)s, 403(b)s or 457 plans.

Happy New Year from Oliver Asset Management!

The Power of Compounding

Thu, 30 Oct 2025 14:56:49 GMT

Would you rather have a million dollars today, or a magic penny that doubles every day for 30 days?

“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” -Albert Einstein

The magic of compounding occurs in the later years.

Would you rather have the power of compounding working for you or against you?

Traditional IRAs and 401(k)s are infested with deferred taxes.

Deferred taxes are compounding debt. Every day they are unpaid, they compound against you.

Planning for HSA Distributions

Thu, 30 Oct 2025 14:45:32 GMT

Planning for Health Savings Account (HSA)Distributions in 5 Easy Steps.

A health savings account is a tax-advantaged medical savings account that helps people pay for qualified out-of-pocket medical expenses. What are the withdrawal rules for HSAs? Are there special considerations that must be taken into account?

#1: Withdrawals can be taken at any time.

There is no holding period like with Roth IRAs. The entire withdrawal (including any earnings) is tax-free as long as there is a corresponding qualified medical expense. The medical expense must be incurred by either the owner or her spouse or dependents. Additionally, the medical expense does not need to occur in the same taxable year as the withdrawal. Instead, the medical expense must simply occur before the withdrawal is made.

#2: HSAs are owned by the individual.

That means the balance carries over year-to-year and also stays with the individual, even if she changes jobs or health coverage. If someone is no longer covered by a qualified high-deductible health plan, she can still take distributions from the HSA. This includes individuals covered by Medicare.

#3: Unlike flexible spending accounts or health reimbursement accounts, an individual does not need to “substantiate” a medical expense before withdrawal

That means an individual does not have to provide receipts or other proof that a qualified medical expense has incurred before accessing the account. However, the individual should retain documentation in the event of an IRS audit.

#4: HSAs are not subject to the required minimum distribution rules, and there is no requirement that the monies be used on current medical expenses.

This means HSA funds can remain in the account over the life of the owner and be used to supplement Medicare coverage during retirement years. Finally, if an HSA account is passed to a spouse, the spouse beneficiary can continue to take withdrawals on the same tax-free basis. If a non-spouse beneficiary is named, the HSA ends on the date of death.

#5: Know the rules!

The penalty for not following the rules is stiff. Not only does the entire distribution become subject to income tax, but it is also subject to a 20% penalty. The penalty is waived if the HSA owner is age 65 or older or disabled at the time of the distribution. However, the distribution is still treated as taxable income. Distributions are reported to the account owner and the IRS using IRS Form 1099-SA.

Are Two Financial Advisors Too Many?

Thu, 30 Oct 2025 09:00:33 GMT

Some people believe having two financial advisors means double the wisdom. But could it really mean double the problems?

Today, Frank tackles a listener’s question about whether splitting money between multiple advisors could be beneficial or just create more confusion. Do more voices mean more value? Tune in as we discuss that idea today!

Here’s what we discuss in this episode:

�� Two-Advisor Dilemma: why some people think more advisors mean more wisdom

�� Confusion & Diversification Myths: how too many voices can create problems

�� Tax Impacts & Roth Conversions: when uncoordinated strategies could cost you money

�� When It Works: cases where multiple advisors can actually add value

0:00 – Intro

1:09 – Listener Question

3:00 – Tax Implications

7:13 – Positive Aspects of Multiple Advisors

8:52 – Final Thoughts

Subscribe & follow the show for free on your favorite apps:

Helpful Resources:

Learn more about the T.I.M.E. planning process by clicking here .

You can also schedule a free planning session with Frank Oliver and the team by clicking here .

Get your copy of Frank's book!

What It’s Really Like to Be A Client Of A Financial Advisor

Thu, 25 Sep 2025 09:01:15 GMT

We often talk about what it’s like to become a client, but today let’s talk about what it’s like to be a client.

Money matters change over time, but the value of a real relationship with an advisor- someone who knows your story and cares about your outcome- never does. In this episode, Frank pulls back the curtain on what ongoing client relationships look like inside his practice, Oliver Asset Management.

Quarterly check-ins, annual planning meetings, and client events like pig roasts, cooking classes, and holiday parties all show that financial planning often goes far beyond numbers on a page. Frank shares stories of clients celebrating retirement milestones, leaning on him for guidance with family decisions, and even swapping recipes and gifts. Most importantly, he explains how clients may go from nervous about retiring to moving forward with confidence.

Here’s what we discuss in this episode:

�� Unexpected Benefits: Surprising perks to having an advisor in your corner

�� Beyond the numbers: Financial planning is also about relationships and building trust

�� Ongoing reviews: How regular check-ins can help monitor progress

�� Client Community: Social and informational events that bring clients together

�� Advisor & Coach: Supporting clients through planning conversations and major life transitions

0:00 – Intro

1:19 – Beginning vs. Maintenance Mode

2:20 – Frequency and Format of Client Meetings

3:01 – Client Events and Community

4:54 – Supporting Clients Beyond Finances

5:53 – Client Victories & Milestones

7:54 – Becoming a Client: The First Visit

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Helpful Resources:

Learn more about the T.I.M.E. planning process by clicking here .

You can also schedule a free planning session with Frank Oliver and the team by clicking here .

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Calculating Your RMD in 5 Easy Steps

Wed, 24 Sep 2025 16:31:17 GMT

What is an RMD (required minimum distribution)? An RMD is the minimum amount that must be withdrawn from a retirement account each year.

When are you subject to RMDs?

Traditional IRA owners are subject to RMDs beginning in the year they reach their required beginning age. The required beginning age depends on year of birth:

7 0½ if born before July 1, 1949
72 if born July 1, 1949 – December 31, 1950
73 if born 1951 – 1959
75 if born 1960 or later

While participants in an employer plan may be able to delay RMDs if they are still working, this exception does not apply to IRAs.

#1: Determine your distribution year.

The distribution year is the year for which you are taking a distribution, not necessarily the year in which you take that distribution. You can delay your first RMD until April 1 of the year following the year you reach your required beginning age. After the year you turn your required beginning age, all distributions should be made by December 31 of each year for which they are being taken.

#2: Find the retirement plan balance.

Use the balance as of December 31 of the prior year. Add back any outstanding rollovers.

#3: Determine the life expectancy factor.

Most IRA owners look up their age on the Uniform Lifetime Table each year in order to determine their factor. If a spouse is the sole beneficiary of an IRA account for the entire year and is more than 10 years younger than the account owner, the Joint Life Expectancy Table is used.

#4: More mathematics.

Divide the retirement plan balance (step 2) by the life expectancy factor (step 3). The result is the RMD that must be taken. Be sure to take the RMD by December 31 of the distribution year (except IRA owners in the year of their first distribution). REMEMBER there is a penalty for any portion of an RMD that is not taken.

#5: Take notice.

RMDs from owned IRA accounts can be aggregated and RMDs from owned 403(b) accounts can be aggregated. All other types of accounts cannot be aggregated.

Navigating Qualified Charitable Distributions in 5 Easy Steps

Wed, 24 Sep 2025 16:08:35 GMT

What is a qualified charitable distribution (QCD)? A QCD is a distribution from an IRA that goes directly to a qualifying charity and is not included in the taxable income of the IRA owner. A QCD cannot be made from an employer plan. A QCD can be up to $108,000 for 2025, per individual.

#1: Either an IRA owner or a beneficiary can do a QCD.

The individual must be at least age 70½ at the time of the transaction. Reaching age 70½ later in the year is not enough. Both spouses can do a QCD when each spouse does the QCD from their own IRA.

#2: A QCD can be made from an IRA, an inactive SEP or SIMPLE IRA, or a Roth IRA.

Only pre-tax amounts can be used for a QCD, which makes the use of Roth funds very unlikely. The QCD must be a direct transfer to a qualifying charity. A check payable to the charity but sent to the IRA owner will qualify as a QCD, as will a check written from a “checkbook IRA” to a qualifying charity. If an IRA owner receives a check payable to him from his IRA and then later gives those funds to charity, that is not considered a QCD.

#3: A charity must be a qualifying charity.

It cannot be a donor-advised fund or a private foundation. For 2025, a QCD of up to $54,000 to a split interest entity such as charitable gift annuity, charitable remainder unitrust, or a charitable remainder annuity trust is allowed. QCDs to split interest entities may only be done in one year of an individual’s lifetime. A QCD to a charity where the IRA owner has an outstanding pledge will qualify and will not create a prohibited transaction. The QCD must satisfy all charitable deduction rules. If a distribution to a charity is more than $108,000, the amount over $108,000 is taxable to the IRA owner and is deductible on the owner’s income tax return. The excess amount cannot be carried over to a future tax year.

#4: A QCD can satisfy a required minimum distribution (RMD) but can be made before RMD age.

RMD ages depend on year of birth:

• Age 70½ if born before July 1, 1949

• Age 72 if born July 1, 1949 – December 31, 1950

• Age 73 if born 1951 – 1959

• Age 75 if born 1960 or later

A QCD is not limited to the amount of the RMD but is capped at $108,000 a year. If an RMD is more than $108,000, any amounts in excess of the QCD are taxable to the IRA owner. Importantly, QCDs can be made as early as age 70½, even before reaching your first RMD year.

#5: The IRA custodian has no special tax reporting for a QCD.

The QCD will be reported on Form 1099-R as a regular distribution. The IRA owner will need to report the QCD on his tax return. The amount of the QCD is excluded from the owner’s taxable income. The IRA owner also cannot take a charitable deduction for the QCD amount.

Ginger & Baker 2025

Thu, 28 Aug 2025 19:43:38 GMT

A huge thank you to everyone who joined us! We’re so grateful for our amazing clients and the joy you bring to every gathering.

Pig Roast 2025

Thu, 28 Aug 2025 19:43:37 GMT

What a wonderful day together! We had so much fun celebrating with such an incredible group of clients.

Pig Roast 2024

Thu, 28 Aug 2025 19:43:36 GMT

We’re so thankful for each of you who came out! These events are always more special because of the laughter and memories we share.

Holiday Party 2024

Thu, 28 Aug 2025 19:43:35 GMT

Thank you for making this day so memorable! We had a blast and hope you did too.

Pig Roast 2023

Thu, 28 Aug 2025 19:43:32 GMT

It’s always a pleasure connecting outside the office. Thank you for making this such a fun and memorable event!

Car Show 2023

Thu, 28 Aug 2025 19:43:30 GMT

What a fantastic event with even better company! We’re so grateful for each of you who joined us.

Holiday Party 2023

Thu, 28 Aug 2025 19:43:26 GMT

We loved seeing so many friendly faces! Your presence made this day extra special.

Holiday Party 2022

Thu, 28 Aug 2025 19:43:20 GMT

We had such a wonderful time together! Thank you for making the day full of laughter and great memories.

To Convert or NOT To Convert in 5 Easy Steps

Wed, 27 Aug 2025 20:34:30 GMT

What is a Roth IRA conversion? A Roth IRA conversion is the process of moving IRA or employer plan assets to a Roth IRA.

#1: When will you need the money?

If you have an immediate need for the funds or need them to continue your current standard of living, then a Roth IRA conversion is probably not for you. However, if you have no immediate need for the funds, a Roth IRA conversion is potentially a great way for the funds to grow tax-free over your lifetime.

#2: Where will the money come from to pay the tax?

In nearly all cases, the money to pay the tax on a Roth IRA conversion should come from outside (non-retirement account) funds in order for the conversion to make sense. When a Roth IRA conversion is made, it generally triggers a taxable event, so your ability to pay that tax with outside money will go a long way in determining whether a Roth IRA conversion is right for you.

#3: What do you think future tax rates will be?

If you believe your income tax rate will be the same or higher in retirement, then converting funds to a Roth IRA NOW makes more sense, since you will be paying the tax at a lower rate. On the other hand, if you think your income tax rate will be much lower in retirement, you may want to forgo a Roth IRA conversion and take advantage of lower tax rates in a later year.

#4: Other reasons to consider a Roth IRA conversion.

You may have favorable tax attributes in the year of the conversion such as large charitable deductions, net operating losses or tax credits; you will not have to take required minimum distributions starting at age 73; you will have the ability to make contributions even after age 73 if there is eligible earned income; you can provide an income-tax-free inheritance to your heirs.

#5: Other reasons to NOT consider a Roth IRA conversion.

You have an aversion to paying the income tax up front; you do NOT trust that the government will keep their tax-free deal; you plan to name a charity as your IRA beneficiary, and it will NOT have to pay income taxes on the money it receives.

Leaving a Legacy: Life Insurance vs. Roth IRAs

Wed, 27 Aug 2025 20:22:59 GMT

Leaving a Legacy

3 Differences Between Life Insurance and Roth IRAs

Life insurance and Roth IRAs have a basic structure in common: they are both wealth transfer tools that help facilitate an efficient transfer of assets from one generation to the next and can provide a tax-free legacy. Despite their similarities, life insurance and Roth IRAs are very different, and the rules that apply to one don’t always apply to the other. In fact, this is the case more often than not. Below, we discuss the three main differences between these two retirement planning vehicles.

#1: Roth IRAs are always included in your estate

Thanks to the current $13.99 million federal exemption amount — the amount that can pass estate tax-free to beneficiaries — estate tax concerns are nowhere near what they used to be. The overwhelming majority of Americans will not owe any federal estate tax when they die. Still, there’s a small segment of the population that has to contend with such concerns. Plus, a number of states still impose state estate taxes, and many of those states have set their own exemption amounts much lower than that of the federal level. In such cases, life insurance may offer an advantage over Roth IRAs.

In contrast, life insurance can be structured so that it’s outside of your estate. Not only does this produce an income tax-free benefit to your heirs but also one that is not subject to estate tax, regardless of the value of your estate when you die. In other words, it is a truly tax-free benefit. There are a variety of ways to accomplish this, including having an irrevocable trust purchase the life insurance policy. To figure out the option that is best for you, consult with your insurance advisor, tax professional or estate planning attorney —or better yet, all three!

#2: There’s a limit to the amount you can contribute to a Roth IRA.

When it comes to the tax code, there is a giant hole for life insurance. Insurance carriers may limit the amount of insurance they’ll offer you based on a variety of factors, including your health, annual income and net worth. That has absolutely nothing to do with the tax code. As far as Uncle Sam is concerned, you can have as much insurance as you want, or perhaps, as much as you can get. In contrast, if you want to make annual Roth IRA contributions, you’re fairly restricted. For 2025, you cannot contribute more than$7,000 ($8,000 if age 50 or older by the end of the year) to a Roth IRA. You can, however, convert any existing IRA or eligible retirement plan funds to a Roth IRA.

Additionally, there’s no rule on what type of income you need to purchase life insurance or how much or how little you need to have. Roth IRA contributions, on the other hand, do have such restrictions. Roth IRA contributions can only be made with income that qualifies as “compensation,” which is typically earned income. In contrast, life insurance premiums can be paid with any type of income, including interest, dividends and Social Security, all of which are not considered compensation. If you had no income, you could simply pay for life insurance premiums from your existing assets (although in reality, if you have assets, you’re almost certainly going to have some income, even if it’s just interest).

There are issues on the other side of the spectrum too. If you have too much income, from whatever sources, you are prohibited from making any Roth IRA contributions. With life insurance, there’s no limit to the amount of income you can have. In fact, all things being equal, you can generally qualify for more life insurance with a higher income.

#3: There are no RMDs for life insurance

Consider the following: when a beneficiary inherits life insurance, the only amount they’ll receive tax-free is the actual life insurance proceeds. If they don’t need the money right away, they might invest the proceeds, but whatever interest, dividends, capital gains or other income those investments generate will be taxable (unless they are invested in assets that don’t produce taxable income, such as municipal bonds). In contrast, the inherited Roth IRA generally does not have to be taken out until December 31 of the tenth year following the owner’s death.

For example, take someone who inherited a Roth IRA at age 50. The Roth IRA can be left alone to grow for 10 years. That growth can later be distributed tax free as well. A beneficiary of a $500,000life insurance policy will only receive $500,000 income tax free, while a beneficiary inheriting a$500,000 Roth IRA may receive twice that amount in tax-free distributions after 10 years.

A Final Thought

If you’re looking to leave a legacy to your heirs when you die, there are many tools to consider. Life insurance and Roth IRAs are two of the many options available. In some cases, life insurance may not be available due to poor health. In other cases, such as when your beneficiaries will be in a lower bracket than you are now, there may be a greater net benefit by leaving them larger amounts of tax-deferred accounts, like IRAs, instead of a smaller amount like Roth IRAs. The bottom line is that every situation is different and there’s no one-size-fits-all solution. Do your homework, seek competent advice and make a decision that best fits your individual situation and goals.

How To Avoid Going Back To Work After Retirement

Thu, 14 Aug 2025 09:00:23 GMT

Your neighbor just went back to work after retiring, and now you’re wondering- did I miss something? If you’re having second thoughts, this episode is for you.

Frank shares why some retirees end up returning to work and smart ways to help avoid the same fate. Tune in as he walks through the most common pitfalls that send people back into the workforce, along with proactive steps to keep your retirement on track.

A successful retirement isn’t just about hitting a number; it’s about building flexibility into your plan so you can handle surprises without panicking. Frank discusses common spending red flags, the importance of using conservative growth assumptions when planning, and examples of trade-offs that may help keep retirement on track if cash flow becomes tight. He also shares why emotional readiness is just as important as financial readiness, and how working with a trusted advisor can give you clarity and confidence.

Here’s what we discuss in this episode:

�� Why some retirees run short and go back to work

�� How quarterly reviews help catch problems early

�� Budgeting realistically for your active years

�� Using conservative growth estimates

�� Small adjustments that can help keep you retired

0:00 – Intro

0:56 – Frank’s Vacation

1:29 – Listener Question

2:59 – Importance of a Review

4:00 – Role of Emotions

4:52 – Assessing Your Situation

6:07 – Why a Solid Plan Matters

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Helpful Resources:

Learn more about the T.I.M.E. planning process by clicking here .

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PLANNING TO SAVE FOR HIGHER EDUCATION ROTH: IRA VS. 529 PLAN

Tue, 29 Jul 2025 15:13:43 GMT

Benefits of a Roth IRA

Roth IRAs are NOT included as an asset on the FAFSA (Free Application for Student Aid) form. Most other assets, including the amount in 529 plans, are included when calculating your EFC (expected financial contribution).
Roth IRAs are more flexible. You can earmark as much or little as you want for higher education expenses, but those funds DON’T NEED to be used for qualifying education expenses. With a 529 plan, if you don’t use those funds for higher education, you will owe income taxes on the gains and the 10% penalty on distributions.
Roth IRAs may provide the same tax-free treatment for distributions. If you are over age 591/2at the time you take distributions from your Roth IRA and you’ve had any Roth IRA for five years or longer, then anything you take out of your Roth IRA will be tax and penalty free. Even if you aren’t age 591/2at the time education-related expenses must be paid, you can still utilize Roth IRA contributions tax and penalty free.

Benefits of a 529 Plan

529 plans benefit from special tax breaks. As long as 529plan distributions are used to pay qualified education expenses, distributions are 100% tax free (in some states, you may also be entitled to a state income tax deduction). Note that with the 2018 changes to the tax law, 529 distributions can now also be used for private K-12 educational expenses.
A 529 plan comes without income restrictions on who can contribute (unlike a Roth IRA’s earned income requirement). There are no federal contribution dollar limits and while individual state limits vary, those limits are much higher than the tax-year Roth IRA contribution limits.
Unused funds in a 529 plan can be rolled over to a Roth IRA for the beneficiary of the 529 plan. Restrictions do apply. You are limited to $35,000 total. Other restrictions include contributions being limited to the annual Roth IRA contribution limit and taxable compensation being required.

Planning for a Disclaimer in 5 Easy Steps

Tue, 29 Jul 2025 14:59:06 GMT

What is a disclaimer?

A disclaimer is a formal refusal of an inheritance (or part of an inheritance) by a beneficiary. By creating a “path” for disclaimed assets to follow, a skilled planner can provide a beneficiary with the option to pass assets to alternate beneficiaries.

#1: Make sure that you name contingent beneficiaries.

Naming a contingent beneficiary directly on the beneficiary form is good practice and a pivotal part of most disclaimer planning. When a disclaimer is executed, the person making the disclaimer is treated as if he or she had predeceased you. The contingent beneficiary would then inherit the property. If there is no contingent beneficiary listed, often times the funds will default to your estate.

#2: Touch nothing after death!

In order to execute a disclaimer, your beneficiaries cannot have “accepted” the property. Typically, this includes taking distributions from the account, actively transferring the account or making investment changes within the account. An exception does exist, however, for a beneficiary taking the year of death required minimum distribution for a deceased account owner.

#3: Consult with a qualified estate planning attorney.

A disclaimer isn’t a simple form your beneficiaries get from your IRA custodian that they just sign and send back. It’s a legal document generally prepared by an estate planning attorney. Since property law is governed primarily at the state level, there may be slight variations from state to state regarding how the disclaimer must actually be executed or worded.

#4: Be mindful of the deadline.

Under the Tax Code, a disclaimer must be delivered to the IRA custodian, in writing, within nine months of the date of your death. In the case of a beneficiary who inherits prior to age 21, the disclaimer must be made within nine months of turning 21.

#5: Review the disclaimer's impact.

There is no changing course with a disclaimer. Once it’s been executed, beneficiaries can’t go back. Before they disclaim, they should make sure they’ve considered all implications. Will it trigger an estate or generation skipping tax? Will it leave a beneficiary with too little? Will it give another beneficiary too much?

6 Options to Access Your Retirement Funds

Fri, 27 Jun 2025 14:49:12 GMT

Are You Leaving Your Employer? You Have Six Options For Your Employer Plan Retirement Funds

#1: Convert to a Roth IRA

The plan assets don’t need to first move to an IRA. You can do a full or partial conversion as a direct rollover or a 60-day rollover.

The advantages? Income-tax-free withdrawals of the converted amount may be done at any time; more investment options; flexibility in estate planning; less paperwork on a distribution; and flexibility in naming beneficiaries.

#2: Convert to Roth Plan Assets

This is similar to the Roth IRA conversion option.

#3: Lump-Sum Distribution

Take the money and run! If you need the money immediately and have no other source of readily available funds, you should think about this option. Keep in mind that income tax and the 10% early distribution penalty, if applicable, may be owed on the total distribution amount.

#4: Leave It in the Current Plan

Leaving it in the plan allows the assets to remain in a tax-deferred plan and maintains creditor protection, but it minimizes many of the benefits of moving the money to tax-free territory.

#5: Move It to a New Employer’s Plan

Many are not aware of this option. If you leave one job for another, the new employer’s plan may allow you to roll in the assets from the old one. Again, this option keeps the assets in a tax-deferred plan. The drawbacks include a continued limit on investment options and plan limits on distributions.

#6: Roll Over Plan Assets to an IRA

If you don’t need the money right away, this is an option to seriously consider. You would be able to have more investment options, no withdrawal restrictions after age 59 ½, and many more benefits that we can discuss when considering the best option for you.

Avoiding Charitable IRA Beneficiary Mistakes in 5 Easy Steps

Fri, 27 Jun 2025 14:38:40 GMT

Can IRAs be used to benefit a charity? IRAs can be a great source of funds to provide a benefit fora favorite charity, but using these funds can create a number of traps that must be avoided in order to maximize benefits to both the charity and other IRA beneficiaries.

#1: Name the charity directly on your beneficiary form.

The money will go directly to the charity, avoiding both the time and expense of probate. Additionally, the distribution to the charity will not be considered income to the estate of the deceased IRA owner.

#2: Set up separate accounts.

Consider transferring the portion you intend to leave to charity into a separate IRA account. If other beneficiaries inherit the same IRA as a charity and the charity’s portion is not “cashed out” or split within the IRS prescribed time frames, the living beneficiaries may be required to take distributions earlier than would otherwise be required.

#3: Reverse your bequests.

If you have made provisions for certain charities under your will and also have retirement plans, an effective tax strategy would be to reverse the bequests with non-retirement assets. This way, the charity receives the same amount that you were going to leave them in your will, but your heirs will end up with more, because the money they will inherit will not be subject to income tax, as the retirement plan would be.

#4: Don’t convert assets you plan to leave to a charity

Many charitable organizations and religious groups are structured as tax-exempt organizations. When an IRA is left to one of these charities, the charity does not have to pay income tax on the distribution as other beneficiaries would. As a result, if you intend to leave your IRA to charity, converting it toa Roth IRA is generally not a wise move. Why pay income tax on the conversion when the money will be going to the charity tax free anyway?

#5: Beware of naming a charity as a trust beneficiary.

A charity is known as a “non-designated beneficiary” because it does not have a life expectancy. Since a charity has no life expectancy, if it is named as a beneficiary of a trust that is also inheriting an IRA, it can require the remaining trust beneficiaries to take distributions earlier than would otherwise be required.

Will a Trust Help Your Kids Save on Taxes?

Thu, 19 Jun 2025 09:00:16 GMT

Trusts are often touted as smart estate planning tools, but could they actually reduce taxes for your heirs? In this listener mailbag episode, Frank responds to a question from Roger, who asks whether setting up a trust could help his children save on taxes when inheriting investment accounts.

Frank clarifies common misconceptions about trusts and tax savings. You’ll learn why most family trusts do not provide tax benefits for typical estates and how, in some cases, trusts can even lead to higher taxes due to state-specific rules and IRS tax brackets. The episode also highlights when trusts might make sense for estate planning purposes, especially for families with complex situations or multi-state assets.

Tune in to hear why estate planning isn’t one-size-fits-all, and why good planning starts with talking to the right professionals!

Here’s what we discuss in this episode:

��Why many trusts don’t provide tax savings for the average estate

�� The current federal estate tax exemption threshold

��️ When trusts could be valuable estate planning tools beyond tax savings

⚖️ Working with an advisor AND attorney before making estate planning decisions

0:00 – Intro

1:38 – Estate Tax Thresholds

2:32 – Why Trusts Usually Don’t Save on Taxes

3:31 – Benefits of Trusts

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Mailbag: Bigger Mortgage Approved... But Should I Take It?

Thu, 12 Jun 2025 09:00:13 GMT

If you've recently been pre-approved for a mortgage, you might be surprised by how much house you technically can buy. But qualifying for a certain loan amount doesn’t always mean it aligns with your financial goals. In today’s episode, Frank answers a listener’s question about whether it might make sense to buy at the top of your budget- or to consider a more measured approach.

Frank shares a story that illustrates some potential long-term considerations when stretching for a larger mortgage. He also outlines a few homeownership costs that borrowers don’t always factor in right away, like property taxes, insurance, and maintenance expenses. If you’re evaluating a major decision around buying a home, this conversation may offer helpful context as you explore your options.

Here’s what we discuss in this episode:

�� Why qualifying for a large mortgage doesn’t always mean it’s the right fit

�� Factors to consider beyond the purchase price

��️ How traditional advice about “buying big” could potentially backfire

0:00 – Intro

0:01 – Listener Question

0:30 – How Much House Can I Afford?

1:52 – Why Bigger Isn’t Always Better

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Learn more about the T.I.M.E. planning process by clicking here .

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Mailbag: Is It Bad to Leave My Old 401k Where It Is?

Thu, 05 Jun 2025 09:00:01 GMT

If you’ve switched jobs in the past few years, chances are you’ve got an old 401k sitting somewhere, collecting dust and possibly fees. Today, Frank answers a listener’s question about what to do with old 401ks, when a rollover might make sense, and how to avoid common pitfalls when making the switch.

Frank walks through the potential risks of ignoring an old account, from missed investment opportunities to surprise tax consequences. You’ll learn why target-date funds may not serve your unique needs, how IRA rules differ from 401k rules (especially after the SECURE Act 2.0), and what options exist even if you’re still working for the same employer.

While it may seem harmless to leave your old 401k alone, that decision requires careful consideration, so stay tuned!

Here’s what we discuss in this episode:

�� What can happen if you leave your old 401k untouched

�� Why target-date funds may not be the best fit for you

�� How some 401k plans can trigger tax bills for beneficiaries

�� Why a rollover could offer more investment flexibility

0:00 – Intro

0:45 – Listener question

1:06 – Why Target-Date Funds Aren’t Always Ideal

2:14 – Secure Act 2.0 & Potential Tax Traps

3:31 – Tax implications

4:56 – Building a Plan After the Rollover

5:55 – In-service distributions

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Planning For Multiple Beneficiaries in 5 Easy Steps

Thu, 29 May 2025 16:53:14 GMT

When do multiple beneficiaries exist? Multiple beneficiaries exist when an individual names more than one beneficiary for their IRA.

When should you name more than one beneficiary? When you want your IRA assets to go to more than one person or entity without having to incur additional fees or paperwork by maintaining separate accounts for each beneficiary.

#1: Due date for designated beneficiaries.

September 30 of the year following the year of the IRA owner’s death is the date designated beneficiaries are determined for purposes of post-death stretch and/or 10-year payments.

#2: Due date for non-designated beneficiaries.

These beneficiaries should be cashed-out before the September 30 date mentioned above. These beneficiaries include charities, estates and non-qualifying trusts since they have no measurable life expectancies. If they are not cashed out in time, they could prevent eligible designated beneficiaries from being able to stretch out distributions.

#3: Due date for separate inherited IRAs.

These should be established and funded for each designated beneficiary by December 31 of the year following the year of the account owner’s death. These accounts must retain the decedent’s name as part of their title and include language identifying them as “inherited” or “beneficiary” accounts, but they must use the beneficiary’s Social Security Number for reporting purposes.

#4: Maximize the stretch.

Each eligible designated beneficiary identified by September 30 can utilize his or her own single life expectancy to maximize the stretch IRA if a separate account is established and funded by December 31. The single life expectancy factor is determined in the year following the year of the account owner’s death. Going forward, the factor is simply reduced by one each year (unless the sole beneficiary is the spouse, in which case he/she re-determines his/her life expectancy each year).

#5: What if you don't split the account in time?

By not splitting the account in time, eligible designated beneficiaries could lose the ability to stretch payments and could be saddled with a 10-year payout requirement

Fixing Missed 60-Day Rollover Deadlines with Self-Certification in 5 Easy Steps

Thu, 29 May 2025 16:31:25 GMT

If I miss the 60-day deadline for completing an IRA rollover, is there any way to save the rollover

amount from tax? Failing to complete a 60-day rollover on time can cause the rollover amount to be taxed

as income and perhaps subject to a 10% early withdrawal penalty. However, the deadline may have been

missed due to reasons that are not the taxpayer’s fault. Fortunately, for such cases, the IRS has created an

easy, low-cost way to fix late rollover errors. Revenue Procedure 2016-47 enables individuals to self-certify

that they are eligible for a waiver of the 60-day deadline and complete a late rollover

#1: Double check the status of every rollover you attempt.

The yearly contribution limit currently is $7,000 or the amount of the child’s earned income, whichever is less. Any kind of paying work will do: babysitting, waiting tables, and so on. Wages can come from a family business. Note: for a minor child (under age 18 to 21, depending on state law), you will need to set up a “guardian IRA” account. These are now offered by many banks and financial institutions.

#2: See if the reason that your rollover wasn’t completed within 60 days is on the list of 12 circumstances the IRS says may justify a waiver

Examples: financial institution mistake, postal error, death in the family. For a complete list and a copy of the IRS’ sample letter, visit: https://www.irs.gov/pub/irs-drop/rp-16-47.pdf

#3: If the reason for the delay is listed, write a self-certification letter and send it to the administrator or trustee of the employer plan or IRA that is receiving the rollover.

Don’t send it to the IRS. The IRS provides a model letter in the Revenue Procedure, and requires that it be followed on a “word-for-word basis or by using a letter that is substantially similar in all material respects.”

#4: Complete the late rollover as soon as possible after the problem that caused the delay is remedied.

The IRS provides a “safe harbor” period of 30 days that it deems acceptable.

#5: Prepare to be audited

The IRS will know of the late rollover because it will be reported on Form 5498 by the financial institution receiving it. In the Revenue Procedure, it says “a copy of the certification should be kept in the taxpayer’s files and be available if requested on audit.” After an audit, the IRS may still deem you ineligible for a wavier. You may or may not be audited, but remember the high stakes and be ready to justify your position if you are.

Is 2025 A Bad Time To Retire?

Thu, 29 May 2025 09:00:00 GMT

Plenty of people have concerns about stock market volatility, a potential recession on the horizon, and worries for the economy amidst recent news. What if you’ve had 2025 marked on the calendar for a while as the year you plan to retire? Is this a bad time to do it? In this episode, Frank walks through five considerations near-retirees should weigh before hitting the eject button on work in 2025 and beyond.

Frank covers key topics like risk exposure, income needs, diversification, and the role emotions play in retirement decisions. He also explains the power of the “bucket strategy” and shares why reacting out of fear can be costly, while having a plan in place can make a big difference.

Here’s what we discuss in this episode:

�� Why 10% down shouldn’t automatically derail your retirement dreams

�� How a bucket strategy can help calm retirement nerves

�� The risks of emotional investing

�� Looking at your individual situation before panicking

0:00 – Intro

1:19 – Tip #1: Don’t Panic

3:07 – Tip #2: Consider Risk Exposure

5:01 – Tip #3: Diversify

6:11 – Tip #4: Think long-term

7:44 – Tip #5: Assess what actually affects you

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Mailbag: How to Stay Smart When the Market Drops

Thu, 22 May 2025 19:34:57 GMT

Market volatility has a way of shaking confidence. It's easy to feel uncertain, but reacting without a plan could do more harm than the drop itself. In this special mailbag episode, Frank tackles timely listener questions about navigating today’s uncertain market.

Should you adjust your portfolio? Is now the right time to invest extra cash? What if you’re just a couple years from retirement and your account is taking a hit? Tune in for practical insights to help you stay grounded when the market isn’t. You’ll also hear why so many people delay getting financial help and how a clear plan can bring peace of mind when markets feel anything but stable.

Here’s what we discuss in this episode:

�� Why “stay the course” only works if you have a plan

⏳ What near-retirees should consider before locking in losses

��Could now be a smart time to invest your sidelined cash?

�� The surprising reason people delay getting financial help

0:00 – Intro

0:48 – Should I Change My Portfolio Now?

3:56 – Is This a Buy-the-Dip Moment?

5:16 – Near Retirement Panic

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What the Greats Say About Market Crashes

Thu, 15 May 2025 09:00:13 GMT

When the market is volatile, it's easy to feel like you're the only one who's ever felt this anxious. But some of the greatest investors in history have lived through chaos, and they left behind wisdom that still applies today. In this episode, Frank turns to voices like Warren Buffett, Benjamin Graham, and Jack Bogle to remind us how to stay grounded when everything feels uncertain.

Frank shares his take on iconic investing quotes and what they mean for people staring down volatility today. You’ll hear why emotional reactions can be costly, how legendary investors resisted panic, and what “stay the course” can look like in real life. If you’ve ever felt the urge to sit on the sidelines or you’re second-guessing your strategy, this episode offers grounded perspective that just might steady your hand.

Here’s what we discuss in this episode:

�� What Buffett really means by “be greedy when others are fearful”

�� Why your emotions might be your biggest financial risk

�� Staying the course through stormy markets

�� The power of balanced portfolios, not bold bets

0:00 – Intro

0:51 – Warren Buffett

2:07 – Benjamin Graham

2:50 – Jack Bogle

3:51 – John Templeton

5:10 – Peter Lynch

6:57 – Morgan Housel

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Weathering the Market: 90 Years of Data

Thu, 08 May 2025 09:00:00 GMT

When markets are shaky, it’s tempting to pull your money out and “wait for things to settle.” But what if that instinct could cost you in lost growth? In this episode, Frank shares compelling statistics on what happens when investors miss the best days in the market, and how a few wrong moves could potentially reduce your long-term returns.

We’ll highlight nearly a century of market performance data showing why patience might pay off. You’ll also learn how a well-constructed portfolio can help you weather downturns without sacrificing your lifestyle. If recent volatility has you feeling uneasy, this conversation might completely change how you think about staying invested!

Here’s what we discuss in this episode:

�� What can happen when you miss the best days in the market

⏳ Why pulling out early can slam the door on future growth

�� How smart planning can help you weather downturns

0:00 – Intro

1:12 – Frank’s insight on market volatility

2:13 – Is it as bad as we think?

3:56 – The potential benefits of staying in the market

6:45 – S&P positive and negative years

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Too Much Income for a Roth IRA? Smart Alternatives!

Thu, 01 May 2025 09:00:02 GMT

What happens when you make too much money to contribute to a Roth IRA? In today’s episode, we open the mailbag to answer a listener’s question about what tax-advantaged opportunities exist when a Roth isn’t on the table. Frank breaks down several smart alternatives that can still give you the tax-free growth you’re looking for, including backdoor Roth conversions and Health Savings Accounts (HSAs).

Frank also explains the importance of timing, tracking, and having the right guidance to avoid costly mistakes- especially when navigating rules around contributions and conversions. If you’re looking for ways to build long-term, tax-free income but are over the Roth limits, this conversation lays out some possible moves to make.

Here’s what we discuss in this episode:

�� Converting after-tax 401(k) contributions

�� How an HSA can serve as another powerful tax-free savings vehicle

�� The importance of getting professional guidance to avoid costly mistakes

0:00 – Intro

0:01 – Listener question

0:34 – Backdoor Roth IRA

1:52 – HSA Accounts

HSA YouTube video:

https://www.youtube.com/watch?v=CH1VTgjCo8Y

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Using IRAs to Help Children in 5 Easy Steps

Thu, 24 Apr 2025 15:30:57 GMT

Can children have IRAs?

There is no minimum age for having an IRA. Due to the power of compound interest, saving tax-free in an IRA from childhood can provide a significant head start on financial security. Saving $7,000 in an IRA annually from age 14 through 24 and earning 7% per year provides over $1 million at age 61—even without contributing after age 24!

#1: Open an IRA for every child who has earned income.

#2: Give children money to make IRA contributions.

If children want to spend their income from working, that’s okay. You can gift money to children to fund IRA contributions.

#3: Use a Roth IRA.

Contributions to Roth IRAs can be withdrawn at any time for any reason with no income tax or early withdrawal penalty resulting, creating savings available at any time. Plus, investment gains in a Roth IRA can eventually be withdrawn tax free. In contrast, distributions from traditional IRAs are taxable and subject to a 10% penalty before age 59 ½. The deduction

for contributions to traditional IRAs is worth little or nothing when a child is in a very low or 0% tax bracket.

#4: Invest the Roth IRA for the long term.

Although stocks have averaged a 7% real return in the past, they can be volatile, creating risk for persons in or near retirement years. Children need not fear this risk because they have a long time line. Too safe investments can actually be costly for them. A steady, sure 3% return from bond-like investments reduces the $1 million in our earlier example to only $229,000.

#5: Keep good records for children.

Make sure a child’s income is “on the books” and reported on a parent’s or the child’s own tax return. If the child’s income comes from a family business, document that it is genuinely earned, and monitor the IRA’s investments carefully.

Avoiding Non-Spouse Beneficiary Mistakes in 5 Easy Steps

Thu, 24 Apr 2025 15:17:27 GMT

How can I avoid making costly mistakes when I inherit an IRA from a person who was not my spouse?

Inheriting an IRA can be a financial windfall, but it’s important to understand the complex, specific rules that apply to non-spouse IRA beneficiaries to avoid critical errors.

#1: IRA-to-IRA Rollovers and Roth IRA-to-Roth IRA Rollovers

Especially, don’t take a distribution from the IRA. Doing so without proper planning may forfeit years of potential tax-favored investment returns. Inherited IRA funds are distinct from IRA funds you save for yourself. They can’t be commingled with your other IRAs, you can’t make contributions to an account that holds them, and they can’t be converted to inherited Roth IRAs. Before acting, consult with a qualified advisor to learn the rules and plan how to best use the inherited funds in your personal situation.

#2: Set up an inherited IRA.

Be sure to set up a properly titled inherited IRA. You can move the funds to a different financial institution if you choose. The transfer between financial institutions must be done by a direct trustee-to-trustee transfer. Nonspouse beneficiaries

cannot do a 60-day rollover.

#3: If the original IRA has multiple beneficiaries, split it so each obtains a separate inherited

IRA.

This will ensure that each beneficiary will get the maximum payout period that the rules allow for them.

#4: Prepare to take required minimum distributions (RMDs).

Both inherited traditional and Roth IRAs are subject to the RMD rules. Most nonspouse beneficiaries under the SECURE Act are subject to a 10-year payout rule and in some cases must take annual RMDs within the 10-year period. A penalty applies to RMDs that are not taken.

#5: Heed deadlines and records.

Inherited IRAs must be established and split by December 31 of the year after that of the owner’s death. Also, check the records of the deceased IRA owner to see if an inherited Traditional IRA contained non-deductible contributions, which provide tax-free distributions. And be sure to designate beneficiaries of your own to the inherited IRA that you establish.

Mailbag: Is DIY Investing a Bad Move As I Get Older?

Thu, 24 Apr 2025 09:00:16 GMT

Some investors like to do it alone- but is that the wisest path as retirement approaches? In this episode, Frank answers a listener’s question about whether DIY investing makes sense later in life. Sam has managed his own portfolio without an advisor or broker for years. But now he’s wondering if that approach holds up as the financial landscape gets more complicated.

Frank explores why the DIY route can feel empowering, but can also be risky, especially when it comes to tax efficiency, income planning, and asset protection. He walks through what advisors can bring to the table beyond investment selection, including understanding retirement income needs, managing volatility, and keeping up with industry innovations that many individuals don’t keep on top of.

Here’s what we discuss in this episode:

��️ What advisors see that many individuals don’t

�� The potential risks of DIY investing in retirement

�� Why investment selection is just one piece of the puzzle

�� Examples of portfolio mistakes from overconfidence

0:00 – Intro

0:26 – Listener Question

1:00 – AI & DIY Lack Advisor Experience

2:44 – Advisor’s Address Unique Goals

3:22 – The Benefits Of A Unique Plan

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Can You Really Build Tax-Free Income With an HSA?

walter@thirdwheelmedia.com (Walter Storholt) — Thu, 17 Apr 2025 09:00:00 GMT

Are HSAs good tax-advantaged accounts? Can you really accumulate funds over the years and use them tax-free in retirement? This is what listener Beth is wondering. She maxes out her HSA every year without touching it. We’ll discuss whether this strategy could be a smart move or if there are potential pitfalls to consider.

In this episode, Frank explores how Health Savings Accounts work, including their unique tax benefits, the flexibility they offer, and how they might fit into a broader financial plan. We’ll look at how leaving your HSA intact today could provide more options tomorrow. Many people are unaware of the full potential of HSAs, so tune in to learn something new today!

Here’s what we discuss in this episode:

�� What makes HSAs unique

�� Why letting your HSA grow could pay off

�� Tracking past medical expenses for future use

�� Common mistakes and how to avoid them

0:00 – Intro Beth’s smart HSA question

0:59 – How the triple tax benefit really works

3:17 – Do HSA funds have to be used for medical expenses?

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Tax Breaks for 2025: Don’t Leave Money on the Table!

Thu, 10 Apr 2025 09:00:01 GMT

Tax season is here and it’s the perfect time to start planning for 2025 and beyond. In this episode, Frank dives into the key tax changes for 2025 that could impact your retirement strategy. From increased 401(k) contribution limits to standard deduction increases, Frank breaks down actionable strategies that could help maximize your tax savings this year and beyond.

With tax season ending, there’s no better time to shift from reactive filing to proactive planning. This episode highlights opportunities that may help you optimize your retirement savings and potentially reduce your tax burden. Tune in to discover some powerful strategies you may be overlooking.

 Here’s what we discuss in this episode:

�� The Standard Deduction: Do you need to itemize?

�� Maximizing 401(k) and IRA contributions, including catch-up provisions

�� Health Savings Accounts (HSAs): The triple tax advantage

�� Smart charitable giving strategies with donor-advised funds

�� Roth IRA conversions for tax-efficient retirement planning

0:00 – Intro

0:49 – Tax Changes for 2025 & Standard Deduction

2:01 – Charitable Gifting Strategies

3:05 – 401(k) Contributions & Your Tax Bracket

5:57 – The Benefits of HSAs

9:05 –Tax Strategies Top Tips

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Starting Over at 53: Smart Career Move or Financial Risk?

Thu, 03 Apr 2025 09:00:02 GMT

Today’s topic comes from a question from Janice, who was recently laid off at 53 and is considering a career change into real estate. But to make it work, she may need to tap into her IRA to make ends meet. Could this put her long-term financial security at risk?

Tune in to hear what Frank has to say from a financial advisor’s perspective. We’re breaking down the pros, cons, and alternative ways to fund a midlife career pivot without tapping into your retirement.

Here’s what we discuss in this episode:

0:00 – Intro

1:28 – Initial reactions and risks

4:25 – Alternatives to using retirement savings

5:44 – Exploring other paths

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5 Beliefs That Could Hurt Your Retirement

Thu, 27 Mar 2025 09:00:01 GMT

April Fool’s Day is all about jokes and pranks, but when it comes to retirement planning, getting fooled can cost you real money. Today, we’re uncovering the beliefs that can fool retirees and pre-retirees into making bad financial moves. We’ll cover some of the most common myths that can damage your retirement plans and explain why they might not make much sense for you.

Is Social Security at risk of running out of money, and should you claim benefits as soon as possible? Is the 4% rule the best strategy for withdrawing from your retirement savings? Don’t let financial myths fool you- tune in to see what you can learn today!

Here’s what we discuss in this episode:

0:00 – Intro

2:11 – The danger of “guaranteed high returns”

4:06 – Claiming Social Security ASAP

5:43 – Set it and forget it retirement plans

7:01 – The 4% rule

8:44 – The fear of spending

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Using a Tax Refund to Fund an IRA

Mon, 24 Mar 2025 16:31:03 GMT

Using a Tax Refund to Fund an IRA

What does the basic process entail? An income tax refund can be directly deposited to an IRA upto the annual contribution limit. The contribution limit is $7,000 ($8,000 if age 50 or over) for 2024and 2025. It can also be split among multiple accounts.

#1: It is tax time!

Prepare your tax return for the year

#2: Determine the refund amount.

Once you know how big your refund will be, decide how much, if any, you would like to contribute to your IRA or Roth IRA up to the maximum annual contribution allowed.

#3: One, two, three.

A refund going to only one account can be done directly on IRS Form1040. Prepare IRS Form 8888 to direct the refund to up to three accounts.

#4: Watch out!

If you use Form 8888, pay attention to the five cautions provided by the IRS on the instructions to ensure that you do not fall into any of those traps. The form can be found on the IRS’ website (www.irs.gov).

#5: Follow-up, follow-up, follow-up.

Top 10 IRA Rollover Mistakes

Mon, 24 Mar 2025 16:14:08 GMT

Top 10 IRA Rollover Mistakes

There are many situations in which one may opt to rollover an IRA, such as inheriting an IRA

from a spouse or changing employers. Each case comes with its own set of crucial

considerations as IRA rollovers have common pitfalls that can result in costly errors if not

executed properly.

#1: IRA-to-IRA Rollovers and Roth IRA-to-Roth IRA Rollovers

Using 60-day IRA rollovers instead of using transfers to move IRA funds
Once-per-year rule is for all IRAs and Roth IRAs
IRS has no authority to correct these mistakes
New client rollover mistakes - not asking about prior rollovers
Not knowing the exceptions to the once-per-year IRA rollover rule

#2: Non-Spouse Rollovers are NOT Permitted

Non-spouse beneficiary cannot do a rollover
Taking a lump-sum distribution
Putting a decedent’s IRA funds into your own IRA
Paying out the entire IRA to a trust beneficiary

#3: Spousal Rollovers

Spousal rollover before age 59½
Forgetting to do the spousal rollover at age 59½
Not naming a successor beneficiary of the inherited IRA

#4: 401(k) Rollovers to IRAs

Not reviewing all options (IRA rollover is not the only option.)
Receiving a distribution personally and being subject to 20% withholding
Not knowing the creditor protection of IRAs in your state
Not first asking about the NUA (net unrealized appreciation) tax break
Rolling over highly appreciated company stock to an IRA
Not allocating the after-tax portion (basis) to a Roth IRA tax free

#5: After-Tax Rollovers From Plans to IRAs and Roth IRAs

Not being aware of the allocation rules that allow the tax-free Roth conversion of after-tax plan funds
Failing to allocate pre-tax and after-tax amounts to the correct account
Rolling over all funds to a traditional IRA (rules do not apply to IRA distributions)
Choosing to receive all funds personally

#6: Roth Conversions (Technically IRA-to-Roth Rollovers)

Not advising on the income impact of a Roth conversions (other taxes may be triggered or tax benefits lost)
RMDs (required minimum distributions) cannot be converted
Choosing to receive all funds personally
SIMPLE IRA cannot be converted until after 2 years
Inherited IRAs cannot be converted, but inherited company plan funds can

#7: In-Plan Roth Rollovers (401(k) to Roth 401(k) Conversions)

Not asking if in-plan conversions are available in the plan
Not estimating the taxes due on the conversion
Not checking first if a Roth IRA conversion is available

#8: Rollovers to Any Retirement Account (60-Day Rule)

Losing track of the 60-day deadline
Not knowing about the 20% mandatory withholding from plans
Not knowing about the self-certification procedures for late rollovers
Depositing the funds into a non-IRA account
Choosing a 60-day rollover instead of a transfer

#9: QDRO Rollovers in Divorce (From Plans Only) to Ex-Spouse as Alternate Payee

Rolling over all of a qualified domestic relations order (QDRO) distribution to an IRA and then taking an IRA distribution before age 59½
Remember! A QDRO distribution is a 10% penalty exception, but only on distributions from the plans!
Not knowing that an IRA rollover voids the 10% penalty exception
Not knowing that QDROs do not apply to IRAs

#10: Rollovers From IRAs Back to Plans

Rolling over basis into the company plan
Only pre-tax funds can be rolled to the plan
Failing to convert remaining IRA basis to a Roth IRA
Not asking if your plan accepts IRA rollovers
Not first checking plan restrictions on accessing funds (Funds are now subject to plan rules.)

“How Should I Finance My Vacation Home?”

Thu, 20 Mar 2025 09:00:02 GMT

Many retirees and pre-retirees dream of owning a vacation home that they can visit throughout the year. But if you decide to make this move, how should you go about financing a second property? That’s the question one of our listeners, Ted, asked Frank this week.

Should you take out a mortgage on the second home or tap into the equity of your primary residence? Or, could it be smarter to sell some investments and buy the property outright with cash? Listen in as Frank shares some pros and cons of different financing options.

Here’s what we discuss in this episode:

�� The pros and cons of borrowing against your current home

�� Could it be worth selling investments to avoid a mortgage?

�� Frank’s custom calculator that can help break down the numbers

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“Do I Have Too Much Insurance?”

Thu, 13 Mar 2025 09:00:02 GMT

We've got a great listener question for you today! This week, Barry shares that he has a life insurance policy through his job, as well as a whole life policy he purchased several years ago. Now, he’s wondering- does he really need both, or should he consider canceling one?

Join Frank as he explores the many uses of life insurance beyond income replacement, from tax-free wealth transfer and estate planning to long-term care protection. If you’ve ever questioned whether you have too much life insurance, tune in for some important insights!

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Social Security Claiming Tips For Different Family Situations

Thu, 06 Mar 2025 10:00:01 GMT

Social Security claiming strategies can vary greatly depending on family dynamics. This episode explores how different family situations, such as those with a stay-at-home spouse or a blended family, could impact when and how to claim Social Security benefits to help maximize your retirement income.

Frank’s key takeaway for listeners: don’t rely on Google to tell you when to claim Social Security. Whether you’re in a single or dual income household, your strategy may differ from others. Tune in as Frank discusses the important factors to consider in order to make a well-informed decision that aligns with your unique circumstances!

Here’s what we discuss in this episode:

0:00 – Intro

1:10 – The broad view

3:13 – Single-income household considerations

6:36 – Blended family considerations

8:03 – The importance of a plan

Frank’s Social Security Guide:

https://www.oliverassetmanagement.com/resources#GuidesandCheatSheets

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Avoiding Mistakes in a Divorce in 5 Easy Steps

Tue, 25 Feb 2025 21:36:38 GMT

Retirement accounts and divorce

When a divorce occurs, the financial assets of a couple, including their retirement accounts, are often split. If mistakes are made during this process, the stress of a divorce can be compounded when one or both spouses find that they are subject to unnecessary taxes or penalties.

#1: IRAs in divorce

#2: ERISA plans in divorce

#3: What to do with the received funds

#4: Name new/update beneficiaries

#5: Reassess retirement preparedness

Choosing the Right Financial Advisor in 5 Easy Steps

Tue, 25 Feb 2025 21:17:52 GMT

Why do you need a financial advisor?

Today’s financial landscape is as complicated as ever. A good financial advisor can help you navigate this complexity so that you can make educated, informed decisions on what is best for you and your family.

#1: Ask for references.

#2: Don’t overemphasize credentials.

It seems as though there are many credentials available to financial advisors. Some credentials require significant levels of education, passing scores on exams and adherence to strict codes of professional conduct. Many credentials, however, can be earned with virtually no effort or education at all. The bottom line is that the decision of what financial advisor to hire should be made based on more than just the letters after their name.

#3: Find a specialist.

#4: Ask about education/training.

Most financial advisors routinely participate in what are called “advanced training” classes. Many times these classes are heavy on sales training and light on “real” education. If you really want to know what your advisor has studied, ask to see the manual from the last educational conference he or she attended. If it has more sales information than technical information… Beware!

#5: Don’t be afraid to get a second opinion.

Your IRA, 401(k) or other retirement account may be the largest single asset you own. If you’re not sure about the advice you’ve been given, don’t be afraid to get a second opinion. If an advisor tells you that there’s no need for one, they’re probably not confident in the information and recommendations they provided to you in the first place.

“Which Account Should I Withdraw From First in Retirement?”

Thu, 20 Feb 2025 10:00:03 GMT

In today’s video, Rebecca asks an important question about retirement planning: With four different investment accounts- her 401(k), IRA, Roth IRA, and individual account- she’s wondering which one she should withdraw from first when she retires next year and needs income.

While many people default to withdrawing from their largest account, often the 401(k), without considering potential tax implications, Frank explains that the decision isn't necessarily about the size of the account. It’s about understanding tax strategies and how different withdrawal approaches could impact your income.

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5 Financial Mistakes to Avoid in Your 60s

Thu, 13 Feb 2025 18:56:01 GMT

Financial mistakes can happen at any age, but they can have a particularly significant impact in your 60s. In today’s episode, Frank discusses 5 common financial blunders to avoid during this pivotal decade.

He breaks down the missteps that could derail your retirement plans, from claiming Social Security too early to failing to take full advantage of tax benefits in your planning. We’ll also share practical strategies to help you stay on track and make informed financial decisions. Tune in to ensure you’re not making these five financial mistakes!

Here’s what we discuss in this episode:

0:00 – Intro

0:55 – Ignoring retirement planning

3:10 – Failing to utilize tax benefits

5:26 – Failing to protect your assets

7:06 – Taking Social Security benefits without a plan

9:50 – Over or under reliance on fixed income

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Should You Claim Social Security While Still Working?

Thu, 06 Feb 2025 10:00:00 GMT

In today’s mailbag episode, we’re answering a question from Bobby about Social Security. He plans to keep working for another two years but wonders if he should start taking his benefits now since he’s reached full retirement age. Is it a smart move, or could waiting be a better strategy?

While everyone’s situation is unique, Frank will share how he helps clients determine the right time to start claiming benefits. Tune in to hear Frank’s insights, key factors to consider, and how timing your benefits could impact your long-term financial security.

Here’s what we discuss in this episode:

0:00 – Intro

0:53 – Tax implications of taking Social Security early

1:47 – How Frank helps clients answer this question

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How To Change Your Money Attitude In 2025

Thu, 30 Jan 2025 11:00:05 GMT

With the New Year comes New Year’s resolutions. While exercising more or eating better are common goals for folks as they try and start fresh in January, having a financial reset is a common resolution as well.

We've got some financial changes that'll help youout and some new mindsets and mentalities that'll put you in theright direction as you go through the new year. So don't worry ifyou failed on some of the resolutions you’ve already made in 2025. We'vegot a few that can give you a second shot on today's show.

Frank will share insights on budgeting, investment timing, and the importance of knowing your assets to help you align your financial goals for a prosperous year ahead.

Here’s what we discuss in this episode:

0:00 – Intro

2:30 – Living within your means

6:36 – Knowing that it’s okay to spend when you have the means to do so

9:10 – Having a good understanding of what you have and where it is

11:07 – The dangers of pausing investments

12:41 – Getting your financial plan

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Is It A Bad Idea To Become A Renter Again In Your 50s?

Thu, 23 Jan 2025 10:00:01 GMT

A listener recently reached out, sharing that their house feels like a constant money pit. They're dealing with one repair after another, and the cost and effort are leaving them frustrated. They’ve asked Frank if he thinks it would be a bad idea to sell the house and rent while they figure out their next move.

If you're in a similar boat and are wondering whether renting again might be the right choice for you, you might be surprised to hear that it's not as silly as it sounds. Tune in as Frank explains how this strategy could open up new financial options for Tim, giving him the flexibility to explore his next steps without the burden of homeownership for now.

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Choosing the Right Tax Professional in 5 Easy Steps

Wed, 22 Jan 2025 20:28:43 GMT

Why do you need a tax professional?

Managing taxes during retirement will be the single most

important factor in determining your ultimate lifestyle. In addition to a financial planner and estate

planning attorney, a qualified tax professional is an integral part of any planning team.

#1: Ask for references.

Have you ever stopped to think about how you picked your doctor or

mechanic? Chances are you chose them because a friend or family member recommended

them based upon a positive experience. The same should be true of your tax professional.

Often times, people are afraid to ask for advice from those closest to them when finances

are involved, but picking the right tax professional is too big of a decision, so “do your

homework” and ask around.

#2: Check for credentials.

Not all tax preparers are CPAs. In fact, in many states, anyone can

prepare tax returns and call themselves a tax professional. Most serious tax professionals

will either be a CPA or an EA (Enrolled Agent). However, this does not necessarily mean that

they are competent enough in the retirement area to assist you.

#3: Ask about experience.

In most cases, you would opt for experience over a novice. Do

you really think your choice of a tax professional is that different? Sometimes, there is no

substitute for experience. Ask your tax professional about cases similar to your own, how

often they deal with them and how they typically handle them.

#4: Ask about education/training.

When most people think “CPA,” they think tax expert. But,

the rules governing retirement accounts are highly complex and are constantly changing. If

your tax professional is serious about this area of retirement planning, they will make sure to

stay up-to-date on the latest tax law changes. Make sure to ask about the last conference or

continuing education class they have attended on retirement planning.

#5: Ask about continuity.

Planning to maximize your retirement distributions and transfer your

wealth is not a one-time deal. Some of your most important decisions may not be made for

years, or even decades. If you don’t expect your tax professional to still be working, you may

want to ask what type of plan they have in place to make sure you will still receive the high

level of advice you deserve when you need it the most.

Leaving a Legacy: Life Insurance vs Roth IRAs

Wed, 22 Jan 2025 17:59:48 GMT

3 Differences Between Life Insurance and Roth IRAs

Life insurance and Roth IRAs have a basic structure in common: they are both wealth transfer tools that help

facilitate an efficient transfer of assets from one generation to the next and can provide a tax-free legacy.

Despite their similarities, life insurance and Roth IRAs are very different, and the rules that apply to one don’t

always apply to the other. In fact, this is the case more often than not. Below, we discuss the three main

differences between these two retirement planning vehicles.

#1: Roth IRAs are always included in your estate.

owe any federal estate tax when they die. Still, there’s a small segment of the population that has

to contend with such concerns. Plus, a number of states still impose state estate taxes, and many

of those states have set their own exemption amounts much lower than that of the federal level. In

such cases, life insurance may offer an advantage over Roth IRAs.

Here’s the deal in a nutshell. The “I” in IRA stands for individual. This means it’s always yours,

and the value of your Roth IRA is always included in your estate. If you’re above the federal estate

tax exemption amount or your applicable state estate tax exemption amount, your beneficiaries

could end up owing estate tax — at the federal level, state level or both — on what you thought were

“tax-free” Roth IRA assets.

In contrast, life insurance can be structured so that it’s outside of your estate. Not only does this

produce an income tax-free benefit to your heirs but also one that is not subject to estate tax,

regardless of the value of your estate when you die. In other words, it is a truly tax-free benefit.

There are a variety of ways to accomplish this, including having an irrevocable trust purchase the

life insurance policy. To figure out the option that is best for you, consult with your insurance advisor,

tax professional or estate planning attorney — or better yet, all three!

#2: There’s a limit to the amount you can contribute to a Roth IRA.

has absolutely nothing to do with the tax code. As far as Uncle Sam is concerned, you can have as

much insurance as you want, or perhaps, as much as you can get. In contrast, if you want to make

annual Roth IRA contributions, you’re fairly restricted. For 2025, you cannot contribute more than

$7,000 ($8,000 if age 50 or older by the end of the year) to a Roth IRA. You can, however, convert

any existing IRA or eligible retirement plan funds to a Roth IRA.

Additionally, there’s no rule on what type of income you need to purchase life insurance or how

much or how little you need to have. Roth IRA contributions, on the other hand, do have such

restrictions. Roth IRA contributions can only be made with income that qualifies as “compensation,”

which is typically earned income. In contrast, life insurance premiums can be paid with any

type of income, including interest, dividends and Social Security, all of which are not considered

compensation. If you had no income, you could simply pay for life insurance premiums from your

existing assets (although in reality, if you have assets, you’re almost certainly going to have some

income, even if it’s just interest).

There are issues on the other side of the spectrum too. If you have too much income, from whatever

sources, you are prohibited from making any Roth IRA contributions. With life insurance, there’s no

limit to the amount of income you can have. In fact, all things being equal, you can generally qualify

for more life insurance with a higher income.

#3: There are no RMDs for life insurance.

When you leave a Roth IRA to non-spouse beneficiaries,

such as children, they must generally receive the entire IRA account by December 31 of the tenth

year after they inherit. These distributions are usually tax free, but they must be taken nonetheless.

When beneficiaries inherit life insurance, there are no RMDs (required minimum distributions) to

worry about. While not having to deal with RMDs is nice, it doesn’t necessarily make life insurance a

better option for your planning than a Roth IRA.

Consider the following: when a beneficiary inherits life insurance, the only amount they’ll receive tax

free is the actual life insurance proceeds. If they don’t need the money right away, they might invest

the proceeds, but whatever interest, dividends, capital gains or other income those investments

generate will be taxable (unless they are invested in assets that don’t produce taxable income, such

as municipal bonds). In contrast, the inherited Roth IRA generally does not have to be taken out

until December 31 of the tenth year following the owner’s death.

For example, take someone who inherited a Roth IRA at age 50. The Roth IRA can be left alone to

grow for 10 years. That growth can later be distributed tax free as well. A beneficiary of a $500,000

life insurance policy will only receive $500,000 income tax free, while a beneficiary inheriting a

$500,000 Roth IRA may receive twice that amount in tax-free distributions after 10 years.

A Final Thought

If you’re looking to leave a legacy to your heirs when you die, there are many tools to consider. Life

insurance and Roth IRAs are two of the many options available. In some cases, life insurance may

not be available due to poor health. In other cases, such as when your beneficiaries will be in a

lower bracket than you are now, there may be a greater net benefit by leaving them larger amounts

of tax-deferred accounts, like IRAs, instead of a smaller amount like Roth IRAs. The bottom line is

that every situation is different and there’s no one-size-fits-all solution. Do your homework, seek

competent advice and make a decision that best fits your individual situation and goals.

How To Invest For Short-Term Goals

Thu, 16 Jan 2025 10:00:01 GMT

Are you saving for something big in the next few years, like a wedding or a down payment on a house? You might be wondering how to make your money work harder in the short term without taking on too much risk.

In this video, Frank talks about products he calls “defined outcome investments,” which may offer higher yields than traditional CDs and bonds while providing downside protection. Whether you’re planning for something in the next 1 to 3 years, Frank explains how these products might help you balance risk and reward.

Here’s some of what we discuss in this episode:

0:00 – Intro

0:57 – Defined outcome investing products

2:43 – Reasons for a short-term investing time horizon

4:21 – The T.I.M.E. Blueprint

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Best Side Hustles for Colorado Retirees (2025 Edition)

Thu, 09 Jan 2025 10:00:01 GMT

As you approach retirement, have you thought about how you’d like to spend your newfound free time? Maybe a part-time job or a side hustle is something that could appeal to you!

Frank has been in this industry for a long time, so today he's going to share some of the most interesting side hustles he's seen some of his clients take on during retirement. He'll also share his thoughts on finding relaxing, fulfilling work that can help keep your mind and body active in your golden years. Make sure to tune in!

Here’s some of what we discuss in this episode:

0:00 – Intro

0:46 – Some interesting side hustles Frank has seen

3:01 – Lifestyle conversations in financial reviews

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Retirement Spending Strategies To Help You Spend With Confidence

Thu, 02 Jan 2025 20:01:32 GMT

It’s the beginning of a new year – a time when many of us make resolutions to improve our lives. But how often do we resolve to improve the way we feel about our finances? Today, we’re talking about spending with confidence, a surprising challenge for many retirees.

Having spent your entire career being encouraged to save diligently for retirement, transitioning to a mindset of spending during retirement can be surprisingly difficult. In this episode, Frank tackles this issue and discusses the guilt that many retirees feel when using their hard-earned savings. He also shares three practical tips that you can easily apply to bolster your confidence in making sound financial choices in this new phase of life.

Here’s some of what we discuss in this episode:

0:00 – Intro

1:29 – The struggle to spend in retirement

4:43 – The guilt element

6:45 – Tangible tips to consider

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Should You Time Your 401(K) Contributions?

Thu, 26 Dec 2024 10:00:00 GMT

If you’ve watched this show for a while, you likely heard it before: timing the market is not a sound financial strategy. But what about timing your 401(k) contributions? Could adjusting your contributions throughout the year give you an edge?

In this video, Frank breaks down whether there’s any merit to this idea. While there typically isn’t a way to employ market timing with your 401(k) contributions, there are situations that may arise where it could be beneficial to bump up your contributions.

Here’s some of what we discuss in this episode:

0:00 – Intro

0:58 – Timing of contributions vs timing the market

2:18 – When might it make sense to bump up contributions?

3:36 – Your T.I.M.E. Is Now

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Mailbag: Should I Restart My 401K Contributions?

Mon, 23 Dec 2024 17:01:53 GMT

In this video, we tackle a listener's question about halting 401K contributions due to fears of a market crash around the election. Even though the anticipated crash didn’t happen, lingering concerns have kept them on the sidelines.

Frank explains why trying to time the market isn’t a sound strategy and why it’s more important to focus on time IN the market, not timing it. Tune in for valuable insights on how consistent contributions, even during volatile times, could help benefit your long-term financial goals!

Here’s some of what we discuss in this episode:

0:00 – Intro

0:38 – Frank’s thoughts on market timing

1:41 – Advantages of continuing contributions

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Navigating Health Care Taxes

Mon, 23 Dec 2024 16:52:04 GMT

Navigating Health Care Taxes

What is considered investment income? Investment Income: Interest, dividends, capital gains (long and short), annuities (not those in IRAs or company plans), royalty income, passive rental income, and other passive activity income. NOT Investment Income: Wages and self-employment income, active trade/business income, distributions from IRAs, Roth IRAs and employer plans, excluded gain from the sale of a principal residence, municipal bond interest, proceeds of life insurance policies, veterans’ benefits, Social Security benefits, gains on the sale of an active interest in a partnership or S corporation.

#1: Identify the surtax income thresholds.

The first step is to know the MAGI (modified adjusted gross income) thresholds to avoid the 3.8% surtax on net investment income. They are as follows: Married Filing Jointly ($250,000); Individuals ($200,000); Married Filing Separately ($125,000); Trusts and Estates ($15,200 to 2024). Trusts and estates are hit particularly hard with the surtax kicking in at a much lower income level.

#2: Look at TAXABLE income.

Taxable income from all sources can push taxpayers over the MAGI threshold and cause their investment income to be subject to the 3.8% surtax. Income tax-free Roth distributions will NOT affect MAGI.

#3: Understand how much will be taxed.

#4: Know other health care tax provisions.

#5: Discuss these tax planning points.

Avoiding 60-Day Rollover Mistakes in 5 Easy Steps

Mon, 23 Dec 2024 16:28:29 GMT

Avoiding 60-Day Rollover Mistakes in 5 Easy Steps

What is a 60-day rollover? A 60-day rollover is the distribution of funds from a qualifying retirement account payable to the account owner who then has 60 days to redeposit the funds into another qualifying retirement account.

#1: Do trustee-to-trustee transfers instead.

#2: Make checks payable to new IRA custodians.

#3: Keep track of when you receive your distribution.

#4: Check to make sure the funds were deposited into the correct account.

#5: Be aware of the once-per-year IRA rollover rule.

Mailbag: Should I Go Ahead And Pay Off My Low Interest Mortgage?

Tue, 10 Dec 2024 23:22:25 GMT

In this video, Frank answers a common question: Should you pay off a low-interest mortgage early? There’s not a one-size-fits-all approach to this question, but there are some considerations that we can look at as we go through our decision-making process!

Frank will discuss the calculator he uses to compare scenarios, how to view your portfolio as a balance sheet, and the value of liquidity to retirees and soon-to-be retirees. If you've ever wondered whether you should pay off your mortgage early, be sure to click play as Frank brings up some important items to think about.

Here’s some of what we discuss in this episode:

0:00 – Intro

0:50 – The house payment calculator

2:20 – Looking at your portfolio as a balance sheet

3:03 – The importance of liquidity

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Financial Lessons From Your Favorite Game Shows

Tue, 26 Nov 2024 21:27:20 GMT

Everyone loves a good game show. Whether it’s spinning the big wheel or hitting the buzzer with all the right answers. But what happens when people turn their retirement planning into a game? Spoiler alert: it’s not always a win!

In this episode, we tackle the risky moves people make when they treat their finances like a game of chance. Join us for a few fun examples of how putting a little more thought and planning into to your retirement can go a long way. If you have any questions about your financial plan, don’t hesitate to reach out to Frank and the team!

Here’s some of what we discuss in this episode:

0:00 – Intro

3:48 – The Price Is Right

5:39 – Are You Smarter Than a Fifth Grader?

8:57 – Who Wants to be a Millionaire?

11:16 – Family Feud

12:53 – Custom planning process with Oliver Asset Management

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Is Dividend Investing A Good Retirement Strategy?

Thu, 21 Nov 2024 12:28:12 GMT

Dividend investing has been a retirement tool utilized by retirees for years, but is it still a strategy we can rely on to help fund our income plan in retirement?

Discover why relying solely on dividends may not be the best approach and explore alternative strategies that could enhance your financial security. Frank also sheds light on the tax implications of dividends and shares how strategic adjustments can lead to significant tax savings.

Here’s some of what we discuss in this episode:

0:00 – Intro

1:05 – Can you live off dividends?

4:31 – Tax considerations with dividends.

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Helpful Resources:

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Calculating Your RMD in 5 Easy Steps

Fri, 15 Nov 2024 15:29:10 GMT

What is an RMD (required minimum distribution)? An RMD is the minimum amount that must

be withdrawn from a retirement account each year.

When are you subject to RMDs? Traditional IRA owners are subject to RMDs beginning in the

year in which they turn age 73. The RMD age used to be 70½, but the SECURE Act raised the age

to 72 for anyone who turned 70½ in 2020 or later. Then, SECURE 2.0 raised it to 73 for those who

turn 72 in 2023 or later. While participants in an employer plan may be able to delay RMDs if they

are still working, this exception does not apply to IRAs.

How to Calculate Your RMD in 5 Steps

#1: Determine your distribution year.

The distribution year is the year for which you are taking a distribution, not necessarily the year in which you take that distribution. You can delay your first RMD until April 1 of the year following the year you reach age 73. After the year you turn age 73, all distributions should be made by December 31 of each year for which they are being taken.

#2: Find the retirement plan balance.

Use the balance as of December 31 of the prior year. Add back any outstanding rollovers.

#3: Determine the life expectancy factor.

Most IRA owners look up their age on the Uniform Lifetime Table each year in order to determine their factor. If a spouse is

the sole beneficiary of an IRA account for the entire year and is more than 10 years younger than the account owner, the Joint Life Expectancy Table is used.

#4: More mathematics.

#5: Take notice.

RMDs from owned IRA accounts can be aggregated and RMDs from owned 403(b) accounts can be aggregated. All other types of accounts cannot be aggregated.

How Small, Consistent Actions Can Pay Off BIG in Finance & Life

Fri, 15 Nov 2024 15:19:15 GMT

What was your last major accomplishment? Did you achieve it overnight? Probably not if we’re talking about life-changing goals, like dropping bad habits or picking up good ones. And if you’re like most folks, you’re probably setting these types of big goals more than you achieve them. In fact, many of us set new goals every new year. When we do, we tend to be pretty optimistic, setting a high bar and long-shot goals. With that, we also tend to set ourselves up for failure. That’s because most of us don’t have a plan for working toward our goals. Instead, we embrace that “go-big-or-go-home” mindset that can leave us falling short. It can also set us back and put our motivation into a tailspin. We can turn all that around, though, and actually accomplish more by focusing on less. That means less occasional heavy lifting and more simple day-to-day steps that can help us make real progress. That small shift in our approach can be a powerful way to accomplish more in many aspects of life. Let’s see how it can work for us in finance by walking through some small, consistent steps any of us can take day to day to achieve extraordinary results in the big picture.

6 Tiny Steps to Achieve Greater Results in Your Financial Life

Let’s see how it can work for us in finance by walking through some small, consistent steps any of us can take day to day to achieve extraordinary results in the big picture.

#1: Tiptoe to start

Think about your goals and what you can do every day to get there. Then, break that task down to an absurdly small level. That’s where you start. Stay at that level for weeks, a month, or more – whatever it takes for you to get bored with it. After that, take it up a notch very slowly, raising the bar by no more than ~10%.3

The point is to make the task so minor that it seems like it’s not worth doing. That keeps the stakes low and makes the task a “no brainer” day to day.

#2: Automate wherever possible

You could use technology and apps to automate your daily small actions. That could mean setting up automatic transfers, so you’re not manually transferring funds day to day.

It could also mean using spending trackers, savings tools, and retirement planners to simplify money management. Again, the point is to make those small, day-to-day tasks as simple as possible.

#3: Piggyback

Pair your new small daily tasks with anything that’s already part of your routine. That connection can make it easier to fold new tasks into your daily rituals, so you don’t forget them – and so they become second nature faster.

#4: Talk about it

Don’t be afraid to talk about money with the folks you trust. Whether it’s your spouse, your kids, or your friends, talking about finance can open your eyes to new ways of thinking and doing things. It can also help you stay accountable with your financial goals. Here are some questions that can start productive conversations about money:

What was the best financial decision you’ve made today?

What’s the best money lesson you’ve learned so far?

Were your parents good or bad with money?

Whether you ask questions or talk specifics on costs, budgets, or finance in your life, talking about it is what’s important. It can clear the air of any “shame” around these conversations and open up opportunities to learn more, share more, and stay on the same page with the folks you care about.

#5: Boost Your IQ

Set aside 3 to 5 minutes a day to do something that teaches you a little more about finance. You could read or watch the financial news. You can also listen to podcasts, watch videos, or read a couple of paragraphs out of a book on finance. You can even subscribe to YouTube channels that routinely put out bite-sized shorts on money.

The point is to engage with the topic every day, so you’re adding one more brick to your house of financial knowledge.

#6: Check in regularly

Check in daily with yourself, and schedule regular check-ins with the folks you trust. That could mean going over the money with your spouse every month or even checking in quarterly with a financial professional.

These check-ins can add another level of accountability, education, and motivation. And that can be the key to staying on track long-term, especially when the going gets tough and it’s hard to see the forest for the trees.

It’s those small, consistent actions we take over time that have the power to REALLY move the needle.

Are Money Market Funds Still a Good Investment After Rate Cuts?

Thu, 14 Nov 2024 13:00:04 GMT

In the ever-evolving world of finance, the Federal Reserve's decisions can send ripples through the investment community. Recently, the Fed has cut interest rates, and this has sparked questions about the future of money market funds. Are they still a viable option for investors, or should we be looking elsewhere?

In this episode of the Time Blueprint podcast, financial advisor Frank Oliver from Oliver Asset Management dives deep into these pressing questions.

Here’s some of what we discuss in this episode:

0:00 – Intro

1:22 – How rate cuts impact money market accounts.

4:11 – Your T.I.M.E. Is Now

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Encouraging Your Spouse To Get Involved In The Financial Plan

walter@thirdwheelmedia.com (Walter Storholt) — Thu, 07 Nov 2024 13:00:03 GMT

A lot of times with couples, one spouse is significantly more involved in financial decision-making than the other. Is this okay or is it important to get both spouses involved and informed on the family’s financial picture?

Today we’re going to answer a question from the mailbag asking about whether you should make your spouse get more involved in the finances as you near retirement. What does Frank think? We’ll find out in this video as Frank offers practical advice on encouraging participation and shares stories that highlight the importance of both partners being informed about their finances.

Tune in to discover strategies for fostering financial collaboration and explore resources like the 'Five Simple Steps to a Successful Retirement' guide to help plan for a secure future.

Here’s some of what we discuss in this episode:

0:00 – Intro

3:00 – Strategies

4:40 – The Five Simple Steps guide

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Surprising Financial Wisdom From The Unlikeliest Celebrities

Thu, 31 Oct 2024 09:00:00 GMT

You wouldn’t necessarily expect Mike Tyson, Kim Kardashian, and Snooki to dispense valuable insights about financial planning matters. In fact, you’d probably expect the opposite. But with a little bit of creativity, we can get some financial planning pearls of wisdom from even the most unlikely of sources.

You wouldn’t necessarily expect Mike Tyson, Kim Kardashian, and Snooki to dispense valuable insights about financial planning matters. In fact, you’d probably expect the opposite. But with a little bit of creativity, we can get some financial planning pearls of wisdom from even the most unlikely of sources.

Tune in as Frank uncovers some valuable lessons hidden within a variety of celebrity quotes. From the words of Lindsay Lohan to Shaquille O’Neal, this episode is a fun one. Sit back, relax, and discover how even the most surprising sources can offer financial inspiration!

Here’s what we discuss in this episode:

0:00 – Intro

1:41 – Lindsay Lohan

4:01 – Charles Barkley

6:38 – Rosie O’Donnell

8:27 – Mike Tyson

11:42 – Snooki

14:23 – Kim Kardashian

16:52 – Shaquille O’Neal

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The Power of Compounding

Tue, 29 Oct 2024 21:58:58 GMT

Would you rather have a million dollars today, or a magic penny that doubles every day for 30 days?

“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” -Albert Einstein

The magic of compounding occurs in the later years.

Would you rather have the power of compounding working for you or against you?

Traditional IRAs and 401(k)s are infested with deferred taxes.

Deferred taxes are compounding debt. Every day they are unpaid, they compound against you.

Planning for Health Savings Account (HSA) Distributions in 5 Easy Steps

Mon, 28 Oct 2024 14:31:48 GMT

A Health Savings Account is a tax-advantaged medical savings account that helps people pay for qualified out-of-pocket medical expenses. What are the withdrawal rules for HSAs? Are there special considerations that must be taken into account?

1. Withdrawals can be taken at any time . There is no holding period like with Roth IRAs. The

entire withdrawal (including any earnings) is tax-free as long as there is a corresponding

qualified medical expense. The medical expense must be incurred by either the owner or her

spouse or dependents. Additionally, the medical expense does not need to occur in the same

taxable year as the withdrawal. Instead, the medical expense must simply occur before the

withdrawal is made.

2. HSAs are owned by the individual. That means the balance carries over year-to-year and also

stays with the individual, even if she changes jobs or health coverage. If someone is no longer

covered by a qualified High Deductible Health Plan, she can still take distributions from the HSA.

This includes individuals covered by Medicare.

3. Unlike flexible spending accounts or health reimbursement accounts, an individual does

not need to “substantiate” a medical expense before withdrawal. That means an individual

does not have to provide receipts or other proof that a qualified medical expense has incurred

before accessing the account. However, the individual should retain documentation in the event

of an IRS audit.

4. HSAs are not subject to the Required Minimum Distribution rules, and there is no

requirement that the monies be used on current medical expenses. This means HSA funds

can remain in the account over the life of the owner and be used to supplement Medicare

coverage during retirement years. Finally, if an HSA account is passed to a spouse, the spouse

beneficiary can continue to take withdrawals on the same tax-free basis. If a non-spouse

beneficiary is named, the HSA ends on the date of death.

5. Know the rules! The penalty for not following the rules is stiff. Not only does the entire

distribution become subject to income tax, it is also subject to a 20% penalty. The penalty is

waived if the HSA owner is age 65 or older or disabled at the time of the distribution. However,

the distribution is still treated as taxable income. Distributions are reported to the account owner

and the IRS using IRS Form 1099-SA.

Putting Clients First: The Core Values of Oliver Asset Management

Thu, 24 Oct 2024 13:25:23 GMT

There are countless financial advisory firms out there, but not all are created equal. Each firm offers unique services and operates with its own set of specialties and core values that shape its approach to helping clients.

In this episode, we take a deep dive into the guiding principles of Oliver Asset Management. Frank will walk us through how these core values drive everything we do at the firm. We'll explore our primary client base, how he supports clients throughout their financial journey, and how the firm's values contribute to our clients' success.

It's an insightful episode you won't want to miss- tune in to discover what sets us apart!

Here’s what we discuss in this episode:

0:00 – Intro

1:34 – The core values of Oliver Asset Management

5:26 – Frank’s core client base

8:04 – How we help clients along the way

13:27 – How the values of the firm help influence client success

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Determining Tax on Roth IRA Distributions in 5 Easy Steps

Tue, 08 Oct 2024 15:38:31 GMT

What are the ordering rules? Roth IRA distributions can consist of contributions, converted funds and

earnings – or any combination of the three. To determine what your distribution is, you must use “ordering

rules” which dictate the order in which these categories of Roth IRA money must be withdrawn. All Roth

IRAs are considered one Roth IRA for distribution purposes. A Roth IRA distribution will consist first of

any Roth IRA contributions. If there are no contributions or those amounts are completely exhausted, the

next funds out are converted funds. Once all converted funds have been exhausted, the remainder of the

distributions will consist of earnings.

1. Are you withdrawing a contribution? Roth IRA contributions are the annual amounts that you

contribute to a Roth IRA account. A distribution of Roth IRA contributions will always be both tax

and penalty free.

2. Are you withdrawing converted amounts before age 59 ½? Converted funds are never subject

to income tax. However, they will be subject to the 10% penalty for early distributions (unless

an exception applies) if you are under 59 ½ and they have been in a Roth IRA for less than five

years. Each conversion starts its own 10% penalty 5-year clock, and the converted amounts are

withdrawn on a first-in, first-out basis.

3. Are you withdrawing converted amounts after 5 years or age 59 ½? A distribution of

converted funds after 5 years or after age 59 ½ will be entirely income tax and penalty free.

4. Are you withdrawing earnings before age 59 ½? Earnings withdrawn prior to age 59 ½ are

generally subject to income tax regardless of how long they’ve been in a Roth IRA account.

Earnings withdrawn prior to age 59 ½ are also generally subject to the 10% penalty for early

distributions unless an exception applies.

5. Are you withdrawing earnings after age 59 ½ and 5 years? Earnings withdrawn after age 59

½ are never subject to the 10% penalty. They may, however, be subject to income tax. If you have

held any Roth IRA for more than 5 years, your earnings are tax free. If not, they are taxable at

ordinary rates.

The ‘How Do You Know’ Questions of Retirement Planning

walter@thirdwheelmedia.com (Walter Storholt) — Tue, 17 Sep 2024 19:17:29 GMT

Were you ever the kid growing up that had to ask, “how do you know?” or “why?” about anything and everything? Turns out, having that inquisitive nature is something that can be extremely valuable to us as we plan out our finances and our retirements, and in today’s show, we’ll dive into some of those questions that you should be asking as you approach your retirement.

Having answers to these critical questions will help you achieve effective retirement planning. From understanding how much income you'll need to navigating the complexities of Social Security benefits, Frank talks through the different strategies and advice that can help people make informed decisions. Tune in for a blend of financial wisdom and personal stories, including a discussion on recent wildfires and a fun debate on camping versus beach vacations.

Here’s what we discuss in this episode:

0:00 – Intro

4:19 – Knowing how much income you need to retire.

7:55 – How to know when you are financially ready to retire.

9:22 – What about annuities?

11:51 – When to start taking social security benefits.

15:10 – Camping or the beach?

17:21 – Mailbag

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To Convert or NOT To Convert in 5 Easy Steps

Thu, 29 Aug 2024 15:25:11 GMT

What is a Roth IRA conversion? A Roth IRA conversion is the process of moving IRA or employer plan assets

to a Roth IRA.

1. When will you need the money? If you have an immediate need for the funds or need them

to continue your current standard of living, then a Roth IRA conversion is probably not for you.

However, if you have no immediate need for the funds, a Roth IRA conversion is potentially a great

way for the funds to grow tax-free over your lifetime.

2. Where will the money come from to pay the tax? In nearly all cases, the money to pay the tax

on a Roth IRA conversion should come from outside (non-retirement account) funds in order for

the conversion to make sense. When a Roth IRA conversion is made, it generally triggers a taxable

event, so your ability to pay that tax with outside money will go a long way in determining whether

a Roth IRA conversion is right for you.

3. What do you think future tax rates will be? If you believe your income tax rate will be the same or

higher in retirement, then converting funds to a Roth IRA NOW makes more sense, since you will

be paying the tax at a lower rate. On the other hand, if you think your income tax rate will be much

lower in retirement, you may want to forgo a Roth IRA conversion and take advantage of lower tax

rates in a later year.

4. Other reasons to consider a Roth IRA conversion. You may have favorable tax attributes in the

year of the conversion such as large charitable deductions, net operating losses or tax credits; you

will not have to take required minimum distributions starting at age 73; you will have the ability to

make contributions even after age 73 if there is eligible earned income; you can provide an income-

tax-free inheritance to your heirs.

5. Other reasons to NOT consider a Roth IRA conversion. You have an aversion to paying the

income tax up front; you do NOT trust that the government will keep their tax-free deal; you plan to

name a charity as your IRA beneficiary and it will NOT have to pay income taxes on the money it

receives.

The Top 401(k) FAQs In 2024

Thu, 01 Aug 2024 09:00:00 GMT

A 401(k) is one of the most common retirement accounts that people have today. However, navigating the ins and outs of your 401(k) without proper guidance can be tricky. That’s why Frank is here to answer your top 401(k) questions in one comprehensive episode.

A 401(k) is one of the most common retirement accounts that people have today. However, navigating the ins and outs of your 401(k) without proper guidance can be tricky. That’s why Frank is here to answer your top 401(k) questions in one comprehensive episode.

On top of 401(k) questions, we take some time to get to know Frank a little better and open up the listener mailbag. This week, Russell asks whether he should allocate all of his retirement savings to a Roth account due to his concern about rising taxes in the future. There’s something for everyone in today’s show, so tune in and perhaps some of your questions will be answered!

Here’s some of what we discuss in this episode:

0:00 – Intro

3:37 – Work plan offers 401(k) advice for a fee

5:45 – Rollover into IRA

8:32 – Adjusting investments approaching retirement

10:54 – What if I change jobs?

13:08 – Getting to know Frank

14:54 – Listener question

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5 Lies You Might Be Telling Yourself About Money

Fri, 19 Jul 2024 18:56:43 GMT

Are you telling yourself financial lies? In today’s episode, we’ll uncover the top 5 lies people often tell themselves about money and retirement. From relying too heavily on Social Security to believing it’s safer to keep your money in cash, some of these could be severely holding you back, so be sure to stay tuned!

Are you telling yourself financial lies? In today’s episode, we’ll uncover the top 5 lies people often tell themselves about money and retirement. From relying too heavily on Social Security to believing it’s safer to keep your money in cash, some of these could be severely holding you back, so be sure to stay tuned!

At the end of this week’s episode, we get to know Frank a bit better as he talks about his wife’s talent for gift-giving. Then, he answers a listener question from Cliff, who is worried about future nursing home costs. Listen in as Frank shares his approach to planning for long-term care expenses and the importance of considering tax implications.

Here’s some of what we discuss in this episode:

0:00 – Intro

2:44 – Why bother with investing?

4:33 – Relying on Social Security

5:59 – You only live once!

9:21 – I’m too young to start saving

12:14 – It’s safer to keep money in cash

15:13 – Getting-to-know Frank

17:03 – Listener question

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6 Options for a Distribution from a Company Plan

Tue, 09 Jul 2024 14:44:49 GMT

Are You Leaving Your Employer? You Have Six Options For Your Employer Plan Retirement Funds.

Convert to a Roth IRA.

The plan assets don’t need to first move to an IRA. You can do a full or partial conversion as a direct rollover

or a 60-day rollover.

The advantages? Income-tax-free withdrawals of the converted amount may be done at any time; more

investment options; flexibility in estate planning; less paperwork on a distribution; and flexibility in naming

beneficiaries.

Convert to Roth Plan Assets.

This is similar to the Roth IRA conversion option.

Lump-Sum Distribution.

Take the money and run! If you need the money immediately and have no other source of readily available

funds, you should think about this option. Keep in mind that income tax and the 10% early distribution penalty,

if applicable, may be owed on the total distribution amount.

Leave It in the Current Plan.

Leaving it in the plan allows the assets to remain in a tax-deferred plan and maintains creditor protection, but

it minimizes many of the benefits of moving the money to tax-free territory.

Move It to a New Employer’s Plan.

Many are not aware of this option. If you leave one job for another, the new employer’s plan may allow you to

roll in the assets from the old one. Again, this option keeps the assets in a tax-deferred plan. The drawbacks

include a continued limit on investment options and plan limits on distributions.

Roll Over Plan Assets to an IRA.

If you don’t need the money right away, this is an option to seriously consider. You would be able to have more

investment options, no withdrawal restrictions after age 59 ½, and many more benefits that we can discuss

when considering the best option for you.

Retirement Rebels: Winning Your Financial Independence

Mon, 01 Jul 2024 15:17:40 GMT

Celebrate the spirit of July 4th with our latest episode as we tackle the concept of Financial Independence. While the American colonists fought for freedom from British rule, we’re here to discuss what you’re striving to be independent from in your retirement.

Celebrate the spirit of July 4th with our latest episode as we tackle the concept of Financial Independence. While the American colonists fought for freedom from British rule, we’re here to discuss what you’re striving to be independent from in your retirement.

From not relying on government programs like Social Security and Medicaid too heavily to entering retirement with no debt, these are some areas where planning ahead can make a significant difference. If you've achieved independence from these key categories, you're likely on the right track!

This episode wraps up with a listener question from Paul, who asks about the best strategy for managing IRA withdrawals to minimize taxes. Join us for insights and practical tips on how to navigate these important aspects of financial planning.

Here’s some of what we discuss in this episode:

0:00 – Intro

4:13 – Independence from government

6:19 – Independence from family

8:22 – Independence from creditors

9:41 – Independence from employment

11:39 – Independence from the stock market

14:08 – Getting to know Frank

15:30 – Mailbag question

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Take The Fork: Yogi Berra’s Financial Planning Wisdom

Thu, 20 Jun 2024 09:00:01 GMT

In this episode, we’re diving into some famous words by the one and only Yogi Berra. You might know him for his legendary baseball career, but Yogi was also a goldmine of wisdom. We'll spin some of his classic quotes into financial advice. It's all about viewing things through the right lens—so let's see what financial insights we can uncover from Yogi’s memorable sayings!

In this episode, we’re diving into some famous words by the one and only Yogi Berra. You might know him for his legendary baseball career, but Yogi was also a goldmine of wisdom. We'll spin some of his classic quotes into financial advice. It's all about viewing things through the right lens—so let's see what financial insights we can uncover from Yogi’s memorable sayings!

Stay tuned until the end of the episode, where we get to know Frank better by learning about his most prized possession: his 1968 Camaro, which he built from the ground up. Then, he answers a listener question from Mary, who asks whether she should start her Social Security early instead of waiting until age 70, given her portfolio's recent fluctuations.

Here’s some of what we discuss in this episode:

0:00 – Intro

2:40 – “…You might wind up some place else.”

4:45 – “When you come to a fork in the road, take it.”

6:10 – “The future ain’t what it used to be.”

8:04 – “It’s like déjà vu all over again.”

10:13 –"It ain't over till it's over."

13:59 – Getting to know Frank

15:43 – Listener question

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The Beauty of Simplicity When Planning For Retirement

Thu, 06 Jun 2024 09:00:00 GMT

Retirement planning doesn’t have to be overwhelmingly complicated. It certainly doesn’t have to be as complicated as some people make it. In this episode, we unravel the unnecessary complexities often woven into the fabric of retirement advice. We’ll debunk some myths, simplify strategies, and uncover the beauty of simplicity and straightforward retirement planning.

Retirement planning doesn’t have to be overwhelmingly complicated. It certainly doesn’t have to be as complicated as some people make it. In this episode, we unravel the unnecessary complexities often woven into the fabric of retirement advice. We’ll debunk some myths, simplify strategies, and uncover the beauty of simplicity and straightforward retirement planning.

One of the key takeaways from the episode is the importance of having a clear plan. Frank advises starting with basic questions like, "When do you want to retire?" and "What are your financial goals?" These simple questions lay the foundation for a more detailed plan.

Stay tuned until the end of the episode, where we get to know Frank better through the question, “What job would you least want to have?” Then, he’ll answer a listener question from Joseph, who asks whether he should proceed with rolling over his old 401(k) into a new account or hold off.

Here’s some of what we discuss in this episode:

0:00 – Intro

2:20 – Simplifying complex financial concepts

4:40 – Why do people feel overwhelmed?

6:16 – Taking the first steps to simplify

10:27 – What a consultation with Oliver Asset Management looks like

16:12 – Getting-to-know Frank

17:33 – Listener question

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Long-Term Care and Life Insurance: The Basics You Must Know

Thu, 23 May 2024 09:00:00 GMT

While you dream about the leisurely days ahead of you in retirement, it’s also important to think about some of the less glamorous items, including insurance. In this new season of life, your old policies may no longer suit your needs or may come to an end. In today’s episode, we’re going to walk you through two important types of insurance for retirees and pre-retirees to be familiar with: long-term care insurance and life insurance.

While you dream about the leisurely days ahead of you in retirement, it’s also important to think about some of the less glamorous items, including insurance. In this new season of life, your old policies may no longer suit your needs or may come to an end.

So, what types of coverage should you be considering for your golden years? What do you need to keep in mind as you prep for the transition? In today’s episode, we’re going to walk you through two important types of insurance for retirees and pre-retirees to be familiar with: long-term care insurance and life insurance.

Stay tuned until the end of the episode to learn about the man who had the biggest impact on Frank’s career in our getting-to-know-you segment. Then, Frank will answer a listener’s question about what to do with the QDRO (Qualified Domestic Relations Order) they received as part of a divorce settlement.

Here’s some of what we discuss in this episode:

0:00 – Intro

5:06 – The long-term care discussion

8:33 – The reality of long-term care

10:12 – Alternatives to long-term care

14:10 – Life insurance in retirement

16:06 – Types of life insurance for retirees

19:16 – Getting to know Frank

21:59 – Listener question

Turks and Caicos Story

https://www.foxnews.com/us/pennsylvania-dad-facing-turks-caicos-prison-time-ammo-charge-says-law-unintended-consequences

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Retirement Questions That Baby Boomers & Gen X Are Asking

walter@thirdwheelmedia.com (Walter Storholt) — Thu, 02 May 2024 09:00:00 GMT

Each generation is currently navigating a unique part of the retirement planning experience. With many baby boomers preparing for the transition into retirement and Generation X starting to think more about their retirement savings, these major life events come with a handful of financial planning questions.

Each generation is currently navigating a unique part of the retirement planning experience. With many baby boomers preparing for the transition into retirement and Generation X starting to think more about their retirement savings, these major life events come with a handful of financial planning questions. In today’s episode, we’ll focus on some of the common questions that these age groups are asking.

While there’s no universal solution to these questions, this episode will provide some important considerations to keep in mind. As Frank and Walter express in this episode, it’s important to address these kinds of questions early on and get a plan in place so that you can step into retirement with confidence.

Be sure to stay tuned until the end of the episode, where Frank answers a listener's question about whether or not to take out a life insurance policy.

Here’s some of what we discuss in this episode:

0:00 – Intro

2:53 – Important considerations 5 years before retirement

7:31 – Downsizing or relocating in retirement

10:15 – Gen Xers seeking professional help

14:03 – Wanting to retire early

17:36 – Getting to know Frank

20:43 – Listener question

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Don’t Make These Income Planning Mistakes

Thu, 18 Apr 2024 09:00:01 GMT

Are you planning for your retirement with the confidence that you're making all the right moves? In today's episode, we'll unveil the crucial income planning mistakes that could put your retirement at risk.

Are you planning for your retirement with the confidence that you're making all the right moves? In today's episode, we'll unveil the crucial income planning mistakes that could put your retirement at risk.

From overlooking inflation to neglecting to diversify income sources beyond Social Security, Frank and Walter will walk you through the key pitfalls to avoid when planning for retirement. Stay tuned to learn how important it is to craft a financial plan that is designed to last decades, not just years.

Don’t miss our fun getting-to-know-you segment at the end of the episode to learn more about Frank. After that, we’ll tackle a listener question from Randall, who asks whether he should move his retirement savings to cash due to recent market volatility.

Here’s some of what we discuss in this episode:

0:00 – Intro

3:33 – Planning to be retired for years, not decades

5:37 – Starting Social Security too early

7:43 – Assuming bonds will be your main income source

10:15 – Ignoring inflation

12:30 – Forgetting lifetime income streams outside Social Security

17:08 – Getting to know Frank

19:36 – Mailbag question

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Avoiding the 10% Penalty in 5 Easy Steps

Wed, 06 Mar 2024 18:56:14 GMT

What is the 10% penalty?

A 10% early distribution penalty applies to taxable distributions made before age 59 ½. Distributions made after age 59 ½ are not subject to the 10% early distribution penalty. There are three categories of exceptions to the 10% early distribution penalty. Some exceptions apply to both IRAs and employer plans, some apply to IRAs only, and some apply to employer plans only. Be sure you use the right exception for your type of retirement account.

1. Exceptions that apply to both IRAs and plans. The main exceptions that apply to both IRAs and plans are disability, death (distributions to beneficiaries are never subject to the penalty), medical expenses generally in excess of 7.5% of AGI (adjusted gross income) in the year of distribution, qualified birth or adoption expenses, an IRS levy, terminal illness, expenses due to a federally declared disaster, domestic abuse, and emergency expenses.

2. Exceptions for just IRAs and just plans. Exceptions for just IRAs include: first-time home buyer, higher education, and health insurance for the unemployed. Exceptions apply for withdrawals from company retirement plans for individuals who separate from service at age 55 or older, and for withdrawals from governmental defined contribution and defined benefit plans for public safety employees who separate from service with at 25 years of service or at age 50 or older. For SIMPLE IRAs, the penalty is 25% for the first two years in the plan, then reverts back to the 10% penalty in

following years.

3. The expense must be in the same year as the IRA distribution. For exceptions such as the higher education expense and the medical expense, make sure the IRA distribution is made in the same year the expense is paid.

4. Some exceptions apply when the distribution is used for a family member. Exceptions such as death and disability only apply to the account owner. Other exceptions apply to family members such as spouses, children or grandchildren. Check with your financial advisor to find out the requirements of any exception for which you think you might qualify.

5. How to claim an exception. Many times the IRA custodian or plan administrator will issue the 1099-R for the distribution with a code saying that the distribution is early and no known exception applies. Don’t give up. You should file IRS Form 5329 with your tax return to tell the IRS what exception you are claiming.

Fixing Missed 60-Day Rollover Deadlines with Self-Certification

Wed, 06 Mar 2024 18:46:37 GMT

If I miss the 60-day deadline for completing an IRA rollover, is there any way to save the rollover amount from tax?

Failing to complete a 60-day rollover on time can cause the rollover amount to be taxed as income and perhaps subject to a 10% early withdrawal penalty. However, the deadline may have been missed due to reasons that are not the taxpayer’s fault. Fortunately, for such cases, the IRS has created an easy, low-cost way to fix late rollover errors. Revenue Procedure 2016-47 enables individuals to self-certify that they are eligible for a waiver of the 60-day deadline and complete a late rollover.

1. Double check the status of every rollover you attempt. Don’t assume one has been

completed just because you did your part. Mistakes happen. You can’t correct a mistake you

don’t know about, and a delay hurts your case with the IRS.

2. See if the reason that your rollover wasn’t completed within 60 days is on the list of 12

circumstances the IRS says may justify a waiver. Examples: financial institution mistake,

postal error, death in the family. For a complete list and a copy of the IRS’ sample letter, visit:

https://www.irs.gov/pub/irs-drop/rp-16-47.pdf

3. If the reason for the delay is listed, write a self-certification letter and send it to the

administrator or trustee of the employer plan or IRA that is receiving the rollover. Don’t

send it to the IRS. The IRS provides a model letter in the Revenue Procedure, and requires that

it be followed on a “word-for-word basis or by using a letter that is substantially similar in all

material respects.”

4. Complete the late rollover as soon as possible after the problem that caused the delay is

remedied. The IRS provides a “safe harbor” period of 30 days that it deems acceptable.

5. Prepare to be audited. The IRS will know of the late rollover because it will be reported on

Form 5498 by the financial institution receiving it. In the Revenue Procedure, it says “a copy of

the certification should be kept in the taxpayer’s files and be available if requested on audit.”

After an audit, the IRS may still deem you ineligible for a wavier. You may or may not be audited,

but remember the high stakes and be ready to justify your position if you are.

The Questions You Must Ask Your Financial Advisor

walter@thirdwheelmedia.com (Walter Storholt) — Thu, 01 Feb 2024 10:00:01 GMT

Have you ever wondered what questions to ask your financial advisor, or why those questions are crucial? In today’s episode, we’re tackling exactly that.

Have you ever wondered what questions to ask your financial advisor, or why those questions are crucial? In today’s episode, we’re tackling exactly that. We're discussing the vital questions that bring transparency and depth to your financial advisory relationship.

It's about getting clarity on how advisors work, what they specialize in, and how they align with your financial goals. These are the questions you MUST ask your financial advisor.

Be sure to stay tuned for the end of the episode, where Frank shares one thing that makes his day better. For this week’s listener question, Jenny asks for advice on whether to prioritize saving more for retirement or use her recent raise to pay extra on her mortgage.

Here’s some of what we discuss in this episode:

0:00 – Intro

3:11 – How do you get paid?

4:31 – Typical client

6:33 – Investment philosophy

9:16 – Strengths and specialties

11:01 – Communication style

13:18 – Educational resources

14:29 – Emergency procedures

16:11 – Who will I work with?

19:53 – Getting to know Frank

23:48 – Listener question

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You can also schedule a free planning session with Frank Oliver and the team by clicking here .

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Using IRAs to Help Children in 5 Easy Steps

Wed, 31 Jan 2024 15:47:47 GMT

Can children have IRAs? There is no minimum age for having an IRA. Due to the power of compound interest, saving tax-free in an IRA from childhood can provide a significant head start on financial security. Saving $7,000 in an IRA annually from age 14 through 24 and earning 7% per year provides over $1 million at age 61—even without contributing after age 24!

1. Open an IRA for every child who has earned income. The yearly contribution limit currently is $7,000 or the amount of the child’s earned income, whichever is less. Any kind of paying work will do: babysitting, waiting tables, and so on. Wages can come from a family business. Note: for a minor child (under age 18 to 21, depending on state law), you will need to set up a “guardian IRA” account. These are now offered by many banks and financial institutions.

2. Give children money to make IRA contributions. If children want to spend their income from working, that’s okay. You can gift money to children to fund IRA contributions.

3. Use a Roth IRA. Contributions to Roth IRAs can be withdrawn at any time for any reason with no income tax or early withdrawal penalty resulting, creating savings available at any time. Plus, investment gains in a Roth IRA can eventually be withdrawn tax free. In contrast, distributions from traditional IRAs are taxable and subject to a 10% penalty before age 59 ½. The deduction for contributions to traditional IRAs is worth little or nothing when a child is in a very low or 0%

tax bracket.

4. Invest the Roth IRA for capital gains. Although stocks have averaged a 7% real return in the past, they can be volatile, creating risk for persons in or near retirement years. Children need not fear this risk, and “safe” investments can be costly for them. A steady, sure 3% return from bond-like investments reduces the $1 million in our earlier example to only $229,000.

5. Keep good records for children. Make sure a child’s income is “on the books” and reported on a parent’s or the child’s own tax return. If the child’s income comes from a family business, document that it is genuinely earned, and monitor the IRA’s investments carefully.

Contributing to an HSA in 5 Easy Steps

Wed, 31 Jan 2024 15:36:18 GMT

What is an HSA? An HSA is a tax-advantaged medical savings account that can be used tax-free for qualified medical expenses. HSAs are designed to be used in conjunction with a High Deductible Health Plan (HDHP). HSAs offer triple tax advantages: contributions are deductible, earnings are tax-deferred while in the HSA, and distributions are tax-free when used for qualified medical expenses.

1. Determine if you are eligible to make an HSA contribution. To be eligible to contribute to an HSA, you must be enrolled in an HDHP. To be an HDHP, a plan must meet certain limits on deductibles and out-of-pocket expenses. These limits are adjusted annually for inflation. You may not contribute to an HSA if you are enrolled in Medicare because Medicare is not an HDHP.

2. Don’t count yourself out too soon. Your income is never too high to make a deductible HSA contribution. Also, you do not need to be working. There is no requirement that you have earned income or taxable compensation to make an HSA contribution. An HSA contribution can also be made by an employer. Your participation in an employer retirement plan or your IRA contribution does not affect your ability to contribute to an HSA.

3. Find out how much you can contribute. The amount you can contribute to an HSA will depend on the type of health insurance coverage that you have. You may make either an individual or family contribution to your HSA. The limits for both types of contributions are adjusted annually for inflation. If you are age 55 or older during the year, you may make a catch-up contribution to your HSA in addition to the regular contribution amount. Prorated HSA contributions are

possible if you are eligible to contribute for only part of the year.

4. HSA contributions can be invested in the same way as other retirement funds. That means that stocks, bonds, and mutual funds can all be used in an HSA. Employers should be mindful of rules that trigger ERISA coverage. Finally, some HSA custodians require a minimum account balance before funds can be invested.

5. Get your contribution done by the deadline. The deadline for making an HSA contribution for the year is the tax-filing deadline, not including any extensions. Your HSA custodian will be reporting your HSA contribution to the IRS, and you will need to report it on your tax return by filing IRS Form 8889.

Patience Pays: The Power of Delayed Gratification

Thu, 18 Jan 2024 10:00:01 GMT

Sometimes it’s hard to make financial sacrifices when the reward might not be seen until several years in the future. Today we’ll talk about some of the situations where you might be inclined to take the immediate benefit when you should really consider the delayed rewards…

Sometimes it’s hard to make financial sacrifices when the reward might not be seen until several years in the future. Today we’ll talk about some of the situations where you might be inclined to take the immediate benefit when you should really consider the delayed rewards…

While it can be tempting to pass up on a 401k match when money is tight or take Social Security as soon as you turn 62, considering the broader implications and future impact of those choices is critical.

At the end of this episode, Frank reminisces about his favorite age growing up and shares an amusing story about his learning to drive. This week's listener question comes from Dan, who wonders about the impact of recent tax law changes on charitable donations.

Here’s some of what we discuss in this episode:

0:00 – Intro

3:41 – Passing up on 401k match

5:51 – Saving in tax-deferred accounts

8:30 – Depleting emergency fund

10:38 – Cashing out retirement plan

13:48 – Taking Social Security at 62

18:10 – Getting to know Frank

21:07 – Listener question

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Choosing the Right Financial Advisor in 5 Easy Steps

Mon, 08 Jan 2024 17:00:46 GMT

Why do you need a financial advisor?

1. Ask for references. Ask your CPA or estate planning attorney. In many cases, they already have a working relationship with a financial advisor. You should also consider asking friends and family members for a recommendation if they are in a similar stage of life and financial situation.

2. Don’t overemphasize credentials. It seems as though there are many credentials available to financial advisors. Some credentials require significant levels of education, passing scores on exams and adherence to strict codes of professional conduct. Many credentials, however, can be earned with virtually no effort or education at all. The bottom line is that the decision of what financial advisor to hire should be made based on more than just the letters after their name.

3. Find a specialist. The term “Financial Advisor” is highly generic and can be used to describe many different types of professionals in the financial services field. When shopping around, find an advisor who specializes in your area of concern. If you had a heart problem, would you rather see your family doctor or a cardiologist? The same principle should apply

to your financial advisor.

4. Ask about education/training. Most financial advisors routinely participate in what are called “advanced training” classes. Many times these classes are heavy on sales training and light on “real” education. If you really want to know what your advisor has studied, ask to see the manual from the last educational conference he or she attended. If it has more sales information than technical information… Beware!

5. Don’t be afraid to get a second opinion. Your IRA, 401(k) or other retirement account may be the largest single asset you own. If you’re not sure about the advice you’ve been given, don’t be afraid to get a second opinion. If an advisor tells you that there’s no need for one, they’re probably not confident in the information and recommendations they provided to you in the first place.

Avoiding 60-Day Rollover Mistakes in 5 Easy Steps

Mon, 08 Jan 2024 16:52:33 GMT

What is a 60-day rollover?

A 60-day rollover is the distribution of funds from a qualifying retirement

account payable to the account owner who then has 60 days to redeposit the funds into another

qualifying retirement account.

1. Do trustee-to-trustee transfers instead. The best way to avoid making a 60-day rollover

mistake is to avoid 60-day rollovers! Transfer your funds directly to another retirement

account. Not only does a direct transfer avoid any 60-day time problems, but if the rollover

is coming from a 401(k) or other qualified plan, it will also avoid the mandatory 20%

withholding requirement.

2. Make checks payable to new IRA custodians. Sometimes the only way a custodian will

distribute an IRA or other retirement account money is in the form of a check. There is a

special rule that allows a distribution by check to qualify as a direct rollover (and avoid the

60-day rules) when the check is made payable to the new IRA. For example, your check

might read “Custodian X f/b/o (for benefit of) John Doe IRA.”

3. Keep track of when you receive your distribution. Few people know when the 60-day

clock actually begins. It starts when you receive the distribution. The few days between

when the check was issued and when you actually received it may make all the difference in

the world.

4. Check to make sure the funds were deposited into the correct account. A common

mistake occurs when funds are accidentally deposited into a non-retirement account. Once

you’ve deposited the funds or sent them to your financial institution, take five minutes out

of your day to make sure they have arrived at their intended destination. If the mistake is

discovered within 60 days it can be corrected.

5. Be aware of the once-per-year IRA rollover rule. You are limited in the number of 60-day

rollovers you can make in a 365-day period. The once-per-year rollover rule applies only to

60-day rollovers from IRA to IRA or from Roth IRA to Roth IRA. Under the rule, once funds

have been rolled over as a 60-day rollover, no other 60-day rollovers can be done by the

account owner within the next 365 days. For this rule, IRAs and Roth IRAs are counted

together.

How To Successfully Climb The Retirement Mountain

Thu, 04 Jan 2024 10:00:01 GMT

Ready for an adventure? Think of retirement planning as climbing a mountain. It's not just about the climb up; it's about preparing wisely, tackling the ups and downs, and even planning your way back down.

Ready for an adventure? Think of retirement planning as climbing a mountain. It's not just about the climb up; it's about preparing wisely, tackling the ups and downs, and even planning your way back down.

We're talking about setting milestones, dealing with market surprises, and making sure your hard-earned savings last through your entire retirement journey. Join us as we gear up with some smart strategies and insights, making sure you reach the top and enjoy the view!

At the end of the episode, Frank provides advice on securing cash for closing on a home without resorting to a substantial IRA withdrawal.

Here’s some of what we discuss in this episode:

0:00 – Intro

2:50 – Preparing For the Climb

5:55 – The Ascent

9:30 – Base Camps

12:00 – The Summit

15:25 – Descending Safely

19:53 – Favorite Sushi

22:15 – Listener Question

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Santa’s Naughty or Nice Investment Guide

Thu, 21 Dec 2023 10:00:00 GMT

In this festive episode, we’ll sift through a sleigh-full of financial products and strategies to find out which ones deserve a spot in your financial stocking this year, and which ones are the proverbial lumps of coal.

In this festive episode, we’ll sift through a sleigh-full of financial products and strategies to find out which ones deserve a spot in your financial stocking this year, and which ones are the proverbial lumps of coal. This will be an educational episode for all investors, whether you’ve been financially naughty or nice this year...

Stay tuned until the end of the show, where we get to know Frank through some creative questions! This week, he shares what exotic animal he would choose to have as a pet. Then, he answers David’s question, who asks if he should reinvest in more CDs once his current ones mature.

Here’s some of what we discuss in this episode:

0:00 – Intro

4:01 – Penny stocks + Crypto

5:22 – S&P 500 Index ETF

7:11 – Rental properties

12:08 – Roth IRAs

12:54 – Credit card

13:53 – HSA

17:46 – Getting to know Frank

22:20 – Listener question

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Money Mistakes You'll Regret & How To Avoid Them

Thu, 07 Dec 2023 10:00:00 GMT

“Learn from the mistakes of others. You can’t live long enough to make them all yourself.” – Eleanor Roosevelt… Ever wish you could foresee financial missteps before they happen? In today’s episode explore some real-life stories of regret and arm yourself with the essential dos and don'ts to ensure your money works for you, not against you.

“Learn from the mistakes of others. You can’t live long enough to make them all yourself.” – Eleanor Roosevelt… Ever wish you could foresee financial missteps before they happen? In today’s episode explore some real-life stories of regret and arm yourself with the essential dos and don'ts to ensure your money works for you, not against you.

Listen in as we discuss the drawbacks of early IRA withdrawals and how important it is to keep lifestyle creep in check in your peak earning years. We’ll also chat about the potential impact of overspending on tuition for your children, the risks that come with retiring early without proper planning, and more.

At the end of this episode, Frank will chat about his favorite winter activity and answer a mailbag question about whether to terminate a whole life insurance policy.

Here’s some of what we discuss in this episode:

0:00 – Intro

4:25 – Premature IRA withdrawals

7:34 – Lifestyle creep

10:24 – Assisting your children

13:29 – Retiring too early

18:06 – Roth IRAs

21:50 – Favorite winter activity

25:53 – Listener question about whole life insurance policy

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IRA New Years Resolutions

Wed, 29 Nov 2023 18:33:55 GMT

New Year's Resolutions

This year…

I will obtain a copy of the IRA beneficiary form for each IRA I own.

I will make sure that I have named a primary beneficiary and a secondary (contingent) beneficiary for each IRA I own.

If there are multiple beneficiaries on one IRA, I will make sure that each beneficiary’s share is clearly identified with a fraction, a percentage or the word “equally” if that is applicable.

I will make sure that the financial institution has my beneficiary selections on file and that their records agree with my choices.

I will keep a copy of all my IRA beneficiary forms and give copies to my financial advisor and attorney.

I will let my beneficiaries know where to locate my IRA beneficiary forms.

I will review my IRA beneficiary forms at least once each year to make sure they are correct and reflect any changes during the year due to new tax laws or major life events such as a death, birth, adoption, marriage, re-marriage or divorce.

I will check the IRA custodial document for every financial institution that holds my IRA funds. I will make sure that the financial institution allows the provisions that are important to me and my IRA beneficiaries.

I will do all of the above for any company retirement plan accounts I have, like 401(k)s, 403(b)s or 457 plans.

Year-End Checklist

Wed, 29 Nov 2023 17:36:35 GMT

Year-End Checklist

It is important for you to take an active role in your retirement planning. Life changes and events happen that require you to update your tax and estate plans. Use the information below to see how your planning might be affected. As you can see, many items require you to take action now. Call your financial advisor, a member of Ed Slott’s Elite IRA Advisor GroupSM, to update your plan.

Have You Had Any of These Life Events?

▶ Birth, death, marriage, divorce, remarriage, or illness

▶ Began collecting Social Security benefits

▶ Layoff or new job

▶ A child’s marriage or divorce

▶ An inheritance or gift received

▶ Creation of a trust

▶ Moving, change of residence, home sale

▶ Change of the IRA or plan custodian

▶ Roth conversion

Have You Had Any of These Life Events?

▶ Post-death distribution options and required minimum distributions (RMDs)

▶ Tax rules for inherited IRAs, including setting up properly-titled inherited IRAs

▶ Spousal beneficiary options

▶ Estate tax return deadlines

▶ Tax benefits to beneficiaries, including net unrealized appreciation (NUA), 10-year averaging, and income in respect of a

decedent (IRD) deduction

Milestone Ages

▶ 50 – Catch-up contributions to retirement plans and IRAs

▶ 50 (or 25 years of service, if earlier) – Plan exception to 10% penalty for public safety employees

▶ 55 – Plan exception to 10% penalty

▶ 59½ – 10% penalty free withdrawals

▶ 70½ – Qualified charitable distributions from IRAs

▶ 73 – RMDs and required beginning date

▶ 75 – 403(b) exception

Year-End Checklist - 2023

▶ Evaluate the effect of 2023 market volatility.

▶ Be sure to take your 2023 RMD from all applicable accounts.

▶ Consider qualified charitable distributions.

▶ Check that inherited IRAs with multiple beneficiaries are split by the end of the year following the year of the IRA owner’s death.

▶ Check to see if enough money is withheld and/or paid in through estimated tax payments to avoid penalties. If you are

short, consider withholding taxes from IRA distributions and replacing those funds within 60 days. (Watch out for the

once-per-year rollover rule!)

▶ Roll over IRA funds to company plans where the still-working exception applies before year’s end to avoid taking RMDs

on those funds next year.

▶ Estate planning – take advantage of annual exclusion gifts

Retirement Planning's "Hidden" Questions

Thu, 16 Nov 2023 13:00:02 GMT

The retirement planning world is filled with plenty of advice and suggestions, but there are critical questions lurking in the shadows – the unasked, the overlooked. These are the questions that can help define the comfort and security of your retirement future. In this episode, we unearth and tackle these hidden, but essential questions about retirement.

The retirement planning world is filled with plenty of advice and suggestions, but there are critical questions lurking in the shadows – the unasked, the overlooked. These are the questions that can help define the comfort and security of your retirement future. In this episode, we unearth and tackle these hidden, but essential questions about retirement.

How much can you safely withdraw from your retirement savings each year? Do you really need life insurance in retirement? Listen in as Frank and Walter tackle these commonly overlooked questions so that you can gain the clarity you need to take on your retirement years with confidence!

For this week’s mailbag question, David asks whether the government can require him to withdraw a certain amount from his IRAs and 401k, leading to a higher retirement income than what he currently earns while working.

Here’s some of what we discuss in this episode:

0:00 – Intro

2:50 – Tax deferred savings

6:45 – How much can I withdraw each year?

9:33 – Life insurance in retirement

11:45 – Medical coverage beyond Medicare?

14:47 – Fees and commissions

19:51 – An exciting announcement

21:19 – Getting to know Frank

23:19 – Mailbag question on RMDs from IRAs and 401Ks

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Investment Planning and Getting the Most Out of Your Money

Thu, 02 Nov 2023 09:00:02 GMT

Today we’re moving to the third pillar in the T.I.M.E™ process as we delve into investment planning and money. When people think about financial planning, this is often the piece of the puzzle that comes to mind first as you work to grow your money in a responsible way.

Investment planning is an exciting part of our job because the options are almost limitless when you’re trying to decide where you want to allocate your money. The other key thing to remember about investment planning is that you need to first establish other pieces of your plan like income, assets, retirement date, Social Security benefits and much more. So this part of the process comes after you’ve started building the plan to know what investments are going to make that plan work correctly.

Today we’ll walk you through a high-level look at how we work through the investing portion of a client’s plan, how the different buckets of money are divided, and how we structure a plan to make sure your money is working for you throughout your retirement.

Here’s some of what we discuss in this episode:

0:00 – Intro

3:54 – What’s the goal?

8:24 – Risk profiles

12:04 – Fees

14:53 – Active vs passive management

18:20 – Getting to know Frank

21:18 – Mailbag question on pensions

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Helpful Resources:

Learn more about the T.I.M.E. planning process by clicking here .

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Planning for Multiple Beneficiaries

Thu, 26 Oct 2023 20:37:23 GMT

When do multiple beneficiaries exist? Multiple beneficiaries exist when an individual names more than one beneficiary for their IRA.

When should you name more than one beneficiary? When you want your IRA assets to go to more than one person or entity without having to incur additional fees or paperwork by maintaining separate accounts for each beneficiary.

1) Due date for designated beneficiaries. September 30 of the year following the year of the IRA owner’s death is the date designated beneficiaries are determined for purposes of post-death stretch and/or 10-year payments.

2) Due date for non-designated beneficiaries. These beneficiaries should be cashed-out before the September 30 date mentioned above. These beneficiaries include charities, estates and non-qualifying trusts since they have no measurable life expectancies. If they are not cashed out in time, they could prevent eligible designated beneficiaries from being able to stretch out distributions.

3) Due date for separate inherited IRAs. These should be established and funded for each designated beneficiary by December 31 of the year following the year of the account owner’s death. These accounts must retain the decedent’s name as part of their title and include language identifying them as “inherited” or “beneficiary” accounts, but they must use the beneficiary’s Social Security Number for reporting purposes.

4) Maximize the stretch. Each eligible designated beneficiary identified by September 30 can utilize his or her own single life expectancy to maximize the stretch IRA if a separate account is established and funded by December 31. The single life expectancy factor is determined in the year following the year of the account owner’s death. Going forward, the factor is simply reduced by one each year (unless the sole beneficiary is the spouse, in which case he/she re-determines his/her life expectancy each year).

5) What if you don’t split the account in time? By not splitting the account in time, eligible designated beneficiaries could lose the ability to stretch payments and could be saddled with a 10-year payout requirement.

Planning for HSA Distributions

Thu, 26 Oct 2023 20:17:13 GMT

1) Withdrawals can be taken at any time. There is no holding period like with Roth IRAs. The entire withdrawal (including any earnings) is tax-free as long as there is a corresponding qualified medical expense. The medical expense must be incurred by either the owner or her spouse or dependents. Additionally, the medical expense does not need to occur in the same taxable year as the withdrawal. Instead, the medical expense must simply occur before the withdrawal is made.

2) HSAs are owned by the individual. That means the balance carries over year-to-year and also stays with the individual, even if she changes jobs or health coverage. If someone is no longer covered by a qualified High Deductible Health Plan, she can still take distributions from the HSA. This includes individuals covered by Medicare.

3) Unlike flexible spending accounts or health reimbursement accounts, an individual does not need to “substantiate” a medical expense before withdrawal. That means an individual does not have to provide receipts or other proof that a qualified medical expense has incurred before accessing the account. However, the individual should retain documentation in the event of an IRS audit.

4) HSAs are not subject to the Required Minimum Distribution rules, and there is no requirement that the monies be used on current medical expenses. This means HSA funds can remain in the account over the life of the owner and be used to supplement Medicare coverage during retirement years. Finally, if an HSA account is passed to a spouse, the spouse beneficiary can continue to take withdrawals on the same tax-free basis. If a non-spouse beneficiary is named, the HSA ends on the date of death.

5) Know the rules! The penalty for not following the rules is stiff. Not only does the entire distribution become subject to income tax, it is also subject to a 20% penalty. The penalty is waived if the HSA owner is age 65 or older or disabled at the time of the distribution. However, the distribution is still treated as taxable income. Distributions are reported to the account owner and the IRS using IRS Form 1099-SA.

Building an Effective Income Plan

Thu, 12 Oct 2023 09:00:00 GMT

Today we’re going to take you through the second piece of the T.I.M.E™ process (tax, income, money, and estate planning) with a discussion on income planning and why it’s so important for anyone preparing for retirement.

This piece of the process can be very challenging for a number of reasons. First, it takes a different set of tools when you’re decumulating versus accumulating throughout your working career. Second, it takes several steps to determine what you’re going to need to make your money last through retirement, and that’s hard to do on your own.

So we’ll layout this income planning part of our T.I.M.E™ process in this episode and help you better understand what all goes into creating your monthly paycheck in retirement.

Here’s some of what we discuss in this episode:

0:00 – Intro

2:58 – Without an income plan, do you really have a retirement plan?

4:26 – Why are so many unprepared here?

6:38 – Steps to putting that income plan in place

9:13 – Real-life example

14:32 – What phone app does Frank use the most?

16:36 – Mailbag question on debt

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The Importance of Tax Planning

Thu, 05 Oct 2023 11:00:01 GMT

There’s a reason why tax planning is a key component to the planning process at Oliver Asset Management. Too often, people focus solely on growing their portfolio another three to five percent, which is important, but it’s much more difficult to make up for a 15-20% tax hit that could have been avoided by proper planning.

Today we want to look a little closer at the tax planning process and how it differs from the tax preparation we do every year in April. Positioning yourself correctly while you’re working can possibly save you thousands of dollars in retirement.

Frank will break down the three tax buckets your money could go into and discuss some common strategies you can use based around those buckets. Plus, we will spend time on Required Minimum Distributions (RMDs) and the impact they will have on your taxes in retirement. No matter how close you are to your retirement age, we want to make sure you are taking the proper steps now to avoid that tax bomb down the road.

Here are some of the highlights from this episode:

0:00 – Intro

3:52 – Tax planning vs tax filing

5:15 – Safe to assume that taxes will be lower in retirement?

9:10 – Three tax buckets

10:07 – Tax strategies to consider when you’re working

12:05 – How taxes fit into legacy planning

13:39 – Required minimum distributions

17:57 – Frank’s favorite bands

19:12 – Listener question on tax-free income

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Getting to Know Frank Oliver

Tue, 03 Oct 2023 22:21:48 GMT

Thanks for joining us for the first episode of The T.I.M.E Blueprint with Frank Oliver of Oliver Asset Management. We’re excited to have you and look forward to the financial planning and retirement conversations we’ll have every show.

To get things kicked off, we wanted to take a little time telling you more about who we are and provide some background on Oliver Asset Management. We’ve been around the Colorado area all of our life, so we’ll tell you why it’s special to us and what you might find us doing away from the office.

Plus, we’ll give you a preview of what we hope you’ll learn from each show and who will get the most out of the conversations we have with Frank. Please subscribe to the show if you like what you hear and stay tuned for more from The T.I.M.E Blueprint.

Here are some of the highlights from this episode:

0:00 – Intro

1:05 – Frank’s background

3:00 – How the business has evolved

4:13 – What being a financial advisor means

9:00 – What we like most about Colorado

12:33 – Frank’s passion for flying

13:39 – What we hope you learn from the show

16:03 – Frank’s favorite TV show growing up

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Protecting an IRA from Prohibited Transactions in 5 Easy Steps

Thu, 28 Sep 2023 16:57:00 GMT

What is a prohibited transaction? A prohibited transaction occurs when an IRA owner uses IRA assets in a self-serving or self-dealing manner that improperly benefits the IRA owner.

When should you look for a prohibited transaction? It may be a prohibited transaction any time an IRA owner or beneficiary has a self-directed IRA account invested in a business in which the account owner also engages outside of the IRA, has unexplained large deposits or balances in the IRA, or funnels business expenses or income through a Roth IRA.

1) Who does it benefit? Make sure that all IRA transactions are done for the benefit of the IRA only. All transactions should be arms length transactions and should be made at current market rates.

2) Personal and IRA assets don’t mesh . Do not commingle personal assets and IRA assets or use personal assets for the benefit of the IRA or its assets. For example, if your IRA owns a rental home, you cannot spend time at the rental home, even if you pay your IRA the fair market rent that any other third party would.

3) You can’t make a deal with your IRA. You cannot borrow from your IRA, lend to your IRA, or pledge your IRA assets as collateral for a loan.

4) Watch out for promotional scams. Promoters/promotions that say a strategy is approved by the IRS are trying to pull a fast one. IRS does NOT approve or recommend IRA transactions or investments.

5) Too many cooks in the kitchen. A transaction that requires multiple entities to accomplish a strategy that would not normally be allowed in an IRA is probably a prohibited transaction.

Navigating Qualified Charitable Distributions in 5 Easy Steps

Thu, 28 Sep 2023 16:44:46 GMT

What is a qualified charitable distribution (QCD)? A QCD is a distribution from an IRA that goes directly to a qualifying charity and is not included in the taxable income of the IRA owner. A QCD cannot be made from an employer plan. A QCD can be up to $100,000 a year, per individual.

1) Either an IRA owner or a beneficiary can do a QCD. The individual must be at least age 70½ at the time of the transaction. Reaching age 70½ later in the year is not enough. Both spouses can do a QCD when each spouse does the QCD from their own IRA.

2) A QCD can be made from an IRA, an inactive SEP or SIMPLE IRA, or a Roth IRA. Only pre- tax amounts can be used for a QCD, which makes the use of Roth funds very unlikely. The QCD must be a direct transfer to a qualifying charity. A check payable to the charity but sent to the IRA owner will qualify as a QCD, as will a check written from a “checkbook IRA” to a qualifying charity. If an IRA owner receives a check payable to him from his IRA and then later gives those funds to charity, that is not considered a QCD.

3) A charity must be a qualifying charity. It cannot be a donor-advised fund or a private foundation. A one-time only, $50,000 QCD to a charitable gift annuity, charitable remainder unitrust, or a charitable remainder annuity trust is allowed. A QCD to a charity where the IRA owner has an outstanding pledge will qualify and will not create a prohibited transaction. The QCD must satisfy all charitable deduction rules. If a distribution to a charity is more than $100,000, the amount over $100,000 is taxable to the IRA owner and is deductible on the owner’s income tax return. The excess amount cannot be carried over to a future tax year.

4) A QCD can satisfy a required minimum distribution (RMD) but can be made before age 73. It is not limited to the amount of the RMD, but is capped at $100,000 a year. If an RMD is more than $100,000, any amounts in excess of the QCD are taxable to the IRA owner. QCDs can now be made before the first RMD year (age 73).

5) The IRA custodian has no special tax reporting for a QCD. The QCD will be reported on Form 1099-R as a regular distribution. The IRA owner will need to report the QCD on his tax return. The amount of the QCD is excluded from the owner’s taxable income. The IRA owner also cannot take a charitable deduction for the QCD amount.

How to Calculate Your RMD

Wed, 30 Aug 2023 16:01:52 GMT

What is an RMD (required minimum distribution)? An RMD is the minimum amount that must be withdrawn from a retirement account each year.

When are you subject to RMDs? Traditional IRA owners are subject to RMDs beginning in the year in which they turn age 73. The RMD age used to be 70½, but the SECURE Act raised the age to 72 for anyone who turned 70½ in 2020 or later. Then, SECURE 2.0 raised it to 73 for those who turn 72 in 2023 or later. While participants in an employer plan may be able to delay RMDs if they are still working, this exception does not apply to IRAs.

1) Determine your distribution year. The distribution year is the year for which you are taking a distribution, not necessarily the year in which you take that distribution. You can delay your first RMD until April 1 of the year following the year you reach age 73. After the year you turn age 73, all distributions should be made by December 31 of each year for which they are being taken.

2) Find the retirement plan balance. Use the balance as of December 31 of the prior year. Add back any outstanding rollovers.

3) Determine the life expectancy factor. Most IRA owners look up their age on the Uniform Lifetime Table each year in order to determine their factor. If a spouse is the sole beneficiary of an IRA account for the entire year and is more than 10 years younger than the account owner, the Joint Life Expectancy Table is used.

4) More mathematics. Divide the retirement plan balance (step 2) by the life expectancy factor (step 3). The result is the RMD that must be taken. Be sure to take the RMD by December 31 of the distribution year (except IRA owners in the year of their first distribution). REMEMBER there is a penalty for any portion of an RMD that is not taken.

5) Take notice. RMDs from owned IRA accounts can be aggregated and RMDs from owned 403(b) accounts can be aggregated. All other types of accounts cannot be aggregated.

To Convert or NOT To Convert in 5 Easy Steps

Wed, 30 Aug 2023 15:42:48 GMT

What is a Roth IRA conversion? A Roth IRA conversion is the process of moving IRA or employer plan assets to a Roth IRA.

1) When will you need the money? If you have an immediate need for the funds or need them to continue your current standard of living, then a Roth IRA conversion is probably not for you. However, if you have no immediate need for the funds, a Roth IRA conversion is potentially a great way for the funds to grow tax-free over your lifetime.

2) Where will the money come from to pay the tax? In nearly all cases, the money to pay the tax on a Roth IRA conversion should come from outside (non-retirement account) funds in order for the conversion to make sense. When a Roth IRA conversion is made, it generally triggers a taxable event, so your ability to pay that tax with outside money will go a long way in determining whether a Roth IRA conversion is right for you.

3) What do you think future tax rates will be? If you believe your income tax rate will be the same or higher in retirement, then converting funds to a Roth IRA NOW makes more sense, since you will be paying the tax at a lower rate. On the other hand, if you think your income tax rate will be much lower in retirement, you may want to forgo a Roth IRA conversion and take advantage of lower tax rates in a later year.

4) Other reasons to consider a Roth IRA conversion. You may have favorable tax attributes in the year of the conversion such as large charitable deductions, net operating losses or tax credits; you will not have to take required minimum distributions starting at age 73; you will have the ability to make contributions even after age 73 if there is eligible earned income; you can provide an income- tax-free inheritance to your heirs.

5) Other reasons to NOT consider a Roth IRA conversion. You have an aversion to paying the income tax up front; you do NOT trust that the government will keep their tax-free deal; you plan to name a charity as your Roth IRA beneficiary and it will NOT have to pay income taxes on the money it receives.

Planning for a Disclaimer in 5 Easy Steps

Tue, 25 Jul 2023 21:52:26 GMT

What is a disclaimer? A disclaimer is a formal refusal of an inheritance (or part of an inheritance) by a beneficiary. By creating a “path” for disclaimed assets to follow, a skilled planner can provide a beneficiary with the option to pass assets to alternate beneficiaries.

1) Make sure the you name contingent beneficiaries. Naming a contingent beneficiary directly on the beneficiary form is good practice and a pivotal part of most disclaimer planning. When a disclaimer is executed, the person making the disclaimer is treated as if he or she had predeceased you. The contingent beneficiary would then inherit the property. If there is no contingent beneficiary listed, often times the funds will default to your estate.

2) Touch nothing after death! In order to execute a disclaimer, your beneficiaries cannot have “accepted” the property. Typically, this includes taking distributions from the account, actively transferring the account or making investment changes within the account. An exception does exist, however, for a beneficiary taking the year of death required minimum distribution for a deceased account owner.

3) Consult with a qualified estate planning attorney. A disclaimer isn’t a simple form your beneficiaries get from your IRA custodian that they just sign and send back. It’s a legal document generally prepared by an estate planning attorney. Since property law is governed primarily at the state level, there may be slight variations from state to state regarding how the disclaimer must actually be executed or worded.

4) Be mindful of the deadline. Under the Tax Code, a disclaimer must be delivered to the IRA custodian, in writing, within nine months of the date of your death. In the case of a beneficiary who inherits prior to age 21, the disclaimer must be made within nine months of turning 21.

5) Review the disclaimer’s impact. There is no changing course with a disclaimer. Once it’s been executed, beneficiaries can’t go back. Before they disclaim, they should make sure they’ve considered all implications. Will it trigger an estate or generation skipping tax? Will it leave a beneficiary with too little? Will it give another beneficiary too much?

Are You Leaving Your Employer? You Have Six Options For Your Employer Plan Retirement Funds

Tue, 25 Jul 2023 21:27:33 GMT

Many people have company-sponsored retirement plans as part of their portfolios. Contributions are typically effortless as your account accumulates from funds deposited directly from your paycheck. However, when it comes time for a distribution, there is much more to be mindful of.

Although IRA rollovers, Roth conversions and lump-sum distributions may present significant tax-saving strategies, they are likely only available at the time of your distribution. So proceed carefully to minimize your tax burden when considering some of the below options.

1) Convert to a Roth IRA. The plan assets don’t need to first move to an IRA. You can do a full or partial conversion as a direct rollover or a 60-day rollover.

The advantages? Income-tax-free withdrawals of the converted amount may be done at any time; more investment options; flexibility in estate planning; less paperwork on a distribution; and flexibility in naming beneficiaries.

2) Convert to Roth Plan Assets. This is similar to the Roth IRA conversion option. You will also have required minimum distributions (RMDs) from the plan during your lifetime – unlike with a Roth IRA conversion. We can discuss strategies to avoid this.

3) Lump Sum Distribution. Take the money and run! If you need the money immediately and have no other source of readily available funds, you should think about this option. Keep in mind that income tax and the 10% early distribution penalty, if applicable, will be owed on the total distribution amount.

4) Leave it in the Current Plan. Leaving it in the plan allows the assets to remain in a tax-deferred plan and maintains creditor protection, but it minimizes many of the benefits of moving the money to tax-free territory.

5) Move it to a New Employers Plan. Many are not aware of this option. If you leave one job for another, the new employer’s plan may allow you to roll in the assets from the old one. Again, this option keeps the assets in a tax-deferred plan. The drawbacks include a continued limit on investment options and plan limits on distributions.

6) Roll Over Plan Assets to an IRA. If you don’t need the money right away, this is an option to seriously consider. You would be able to have more investment options, no withdrawal restrictions after age 59 ½, and many more benefits that we can discuss when considering the best option for you.

Avoiding the 10% Tax Penalty in 5 Easy Steps

Wed, 28 Jun 2023 18:19:21 GMT

What is the 10% penalty? A 10% early distribution penalty applies to taxable distributions made before age 59 ½. Distributions made after age 59 ½ are not subject to the 10% early distribution penalty.

Exceptions: Exceptions apply for withdrawals from company retirement plans for individuals who separate from service at age 55 or older, and for withdrawals from governmental defined contribution and defined benefit plans for public safety officials who separate from service with at 25 years of service or at age 50 or older. For SIMPLE IRAs, the penalty is 25% for the first two years in the plan, then reverts back to the 10% penalty in following years.

1) For distributions before age 59 ½, look for an exception to the penalty. The main exceptions are disability, death (distributions to beneficiaries are never subject to the penalty), medical expenses generally in excess of 7.5% of AGI (adjusted gross income) in the year of distribution, first-time home buyers, higher education expenses, qualified birth or adoption expenses, an IRS levy, health insurance for the unemployed receiving unemployment compensation for 12 consecutive weeks, terminal illness, and due to a federally declared disaster.

2) Make sure the exception you want to use applies to the type of plan you have. There are three categories of exceptions to the 10% early distribution penalty. Some exceptions apply to both IRAs and employer plans, some apply to IRAs only, and some apply to employer plans only. Be sure you use the right exception for your type of retirement account.

3) The expense must be in the same year as the IRA distribution. For exceptions such as the higher education expense and the medical expense, make sure the IRA distribution is made in the same year the expense is incurred.

4) Some exceptions apply when the distribution is used for a family member. Exceptions such as death and disability only apply to the account owner. Other exceptions apply to family members such as spouses, children or grandchildren. Check with your financial advisor to find out the requirements of any exception for which you think you might qualify.

5) How to claim an exception. Many times the IRA custodian or plan administrator will issue the 1099-R for the distribution with a code saying that the distribution is early and no known exception applies. Don’t give up. You should file IRS Form 5329 with your tax return to tell the IRS what exception you are claiming.

Frank Oliver Completes Advanced Training from America’s IRA Experts at Ed Slott & Company, LLC

Wed, 24 May 2023 16:27:42 GMT

Members of Ed Slott’s Master Elite IRA Advisor Group ^SM Attend Semiannual Workshop on the Latest Retirement Account Planning Strategies, Estate Planning Techniques and Tax Laws

Frank Oliver, President and Founder of Oliver Asset Management completed his semiannual training with America’s IRA Experts at Ed Slott and Company, LLC by participating in a workshop that took place April 27-28, 2023. The invite-only workshop was attended by members of Ed Slott’s Master Elite IRA Advisor Group ^SM ; it provided in-depth technical training on advanced retirement account planning strategies, tax law changes and estate planning techniques. The workshop also featured a 2023 update on the SECURE Act 2.0 with insight on its most impactful provisions, including the delayed RMD age, new early distribution penalty exceptions and several of the Roth IRA provisions such as 529 plan rollovers.

“ It’s only been a few months since another SECURE Act was signed into law and even though the goal was to expand retirement savings access for Americans, it’s unfortunately created even more confusion for consumers and advisors alike ,” said Ed Slott, CPA, founder of Ed Slott and Company, AARP columnist, Professor of Practice at The American College of Financial Services® and nationally recognized IRA Expert who was named “The Best Source for IRA Advice” by The Wall Street Journal. “ Due to these complex, everchanging laws, it’s more important than ever for advisors to be up-to-speed on the latest retirement planning strategies so they can be vigilant and help ensure clients avoid costly mistakes ,” he continued.

“ I commend Oliver for continuously prioritizing his education and going above and beyond to deliver informed and accurate financial guidance to his clients in a time when it’s needed most. With this ongoing training, Oliver can offer the latest insight on any necessary updates one may need now and into the future. ”

Training highlights from this event included:

An updated look at retirement plan payouts to beneficiaries since the IRS released its proposed SECURE Act RMD Regulations and the SECURE Act 2.0 was passed
A deep dive on SECURE Act 2.0 policies, including:
Changes to Qualified Charitable Distributions (QCDs)
Changes to Qualified Longevity Annuity Contracts (QLACS)
New 10% early-distribution penalty exceptions
Updates on the increased RMD age, RMD penalties and lifetime RMD distributions
Roth IRA changes, including 529 to Roth rollovers and the elimination of lifetime Roth 401(k) RMDs
A comprehensive IRA update on the latest IRA tax law changes, new tax strategies, rulings, court cases and planning opportunities
A special presentation by David McKnight, bestselling author of The Power of Zero, on how to retire in the 0 percent tax bracket

Guest speaker Denise Appleby, MJ, CISP, CRC, with Appleby Retirement Consulting, Inc hosted a breakout session on the critical rules for moving retirement accounts, while guest speaker Martin James, CPA/PFS, with Martin James Investment & Tax Management, Inc., hosted another breakout session on creative tax strategies for Roth conversions. Guest speaker Shannon L. Evans, J.D. presented on creditor protection for IRAs and company plans. Members also reviewed relevant, advanced case studies and private letter rulings.

Training was provided by Ed Slott and Company’s team of retirement experts, including Ed Slott, CPA; Sarah Brenner, JD; Andy Ives, CFP ^® , AIF ^® ; Ian Berger, JD; and Shannon Evans, Esq. Ed Slott and Company and many of the advisors in Ed Slott’s Master Elite IRA Advisor Group ^SM are the go-to resources for attorneys, CPAs and other financial advisors because of their intimate knowledge and advanced expertise in all areas of retirement accounts and distribution planning. This workshop also provided approved continuing education (CE) credits through The American College, CFP ^® Board, IRS and NASBA for retirement savings and income planning, federal tax law topics, general financial education, and accounting.

Members of Ed Slott’s Master Elite IRA Advisor GroupSM have year-round access to Ed Slott and Company’s team of retirement experts for consultation on a variety of advanced planning topics. The membership also includes workshops, webinars, tax law updates, step-by-step processes, such as the Complete IRA Care Solution™ 30-module planning guide, and so much more. Members also have access to proprietary worksheets, pamphlets and presentations, including a 7-step checklist for IRA trust planning after the SECURE Act, SECURE 2.0 key effective dates, and tips to disarm the new retirement savings time bomb as seen in Ed Slott’s latest best-selling book and public television special that they can use when working with clients.

“The way we plan for retirement is always evolving, and this year is no exception, ” said Oliver. “ That’s why continuing education always has and will continue to be a top priority of mine. As a member of this prestigious group of financial professionals, I have an endless number of resources at my fingertips, ensuring that I always have access to the most up-to-date information and backed by a team of IRA Experts that can help me behind the scenes. ”

“ I am extremely proud of every member of our ongoing study group, as these top advisors are stepping up to guide Americans during an uncertain time in our country, ” said Slott. “ With each year, comes a new set of retirement and tax planning laws and policies and our members are leading the way in the industry, armed with the knowledge needed to help navigate their clients through these everchanging times .”

ABOUT ED SLOTT AND COMPANY, LLC: Ed Slott and Company, LLC is the nation’s leading provider of technical IRA education for financial advisors, CPAs and attorneys. Ed Slott’s Elite IRA Advisor Group ^SM is comprised of 500 of the nation’s top financial professionals who are dedicated to the mastery of advanced retirement account and tax planning laws and strategies. Slott is a nationally recognized IRA distribution expert, best-selling author and professional speaker. He has hosted several public television specials, including Ed Slott's Retirement Freedom! and is also the co- host of The Great Retirement Debate podcast, available on all major platforms, including Spotify , Apple , Stitcher , and Amazon . Visit irahelp.com for more information.

ABOUT OLIVER ASSET MANAGEMENT: Frank has always had a passion for helping people as it pertains to their finances, so he opened a specialized financial firm that provides customized retirement strategies. Frank’s extensive education and experience working with hundreds of clients for nearly two decades, positions him to have very clear insight into effective planning procedures.

Along with creating the T.I.M.E.™ process, Frank is a member of the nation’s most exclusive group of financial advisors: Ed Slott’s Master Elite IRA Advisor Group. In addition to Frank’s IRA knowledge, he has spent significant time educating himself on advanced Social Security strategies, greatly aiding him in designing the most efficient retirement plans. Frank has also trained and coached fellow financial advisors across the country on advanced planning techniques, so they too can assist their clients as efficiently as possible.

Frank maintains both his securities and life insurance licenses in order to offer a diverse selection of investment and insurance options for his clients.

Advisory services offered through CreativeOne Wealth, LLC a Registered Investment Adviser. CreativeOne Wealth, LLC and Oliver Asset Management are unaffiliated entities.

Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement.

Using IRAs to Help Children in 5 Easy Steps

Thu, 13 Apr 2023 21:48:02 GMT

Can children have IRAs? There is no minimum age for having an IRA. Due to the power of compound interest, saving tax-free in an IRA from childhood can provide a significant head start on financial security. Saving $6,500 in an IRA annually from age 14 through 24 and earning 7% per year provides over $1 million at age 61—even without contributing after age 24!

1. Open an IRA for every child who has earned income. The yearly contribution limit currently is $6,500 or the amount of the child’s earned income, whichever is less. Any kind of paying work will do: babysitting, waiting tables, and so on. Wages can come from a family business. Note: for a minor child (under age 18 to 21, depending on state law), you will need to set up a “guardian IRA” account. These are now offered by many banks and financial institutions.

2. Give children money to make IRA contributions. If children want to spend their income from working, that’s okay. You can gift money to children to fund IRA contributions.

4. Invest the Roth IRA for capital gains. Although stocks have averaged a 7% real return in the past, they can be volatile, creating risk for persons in or near retirement years. Children need not fear this risk, and “safe” investments can be costly for them. A steady, sure 3% return from bond- like investments reduces the $1 million in our earlier example to only $229,000.

Using a Tax Refund to Fund an IRA in 5 Easy Steps

Thu, 13 Apr 2023 21:36:24 GMT

What does the basic process entail? An income tax refund can be directly deposited to an IRA up to the annual contribution limit. The contribution limit was $6,000 ($7,000 for individuals age 50 or older) for 2022 and $6,500/$7,500 in 2023. It can also be split among multiple accounts.

1. It is tax time! Prepare your tax return for the year.

2. Determine the refund amount. Once you know how big your refund will be, decide how much, if any, you would like to contribute to your IRA or Roth IRA up to the maximum annual contribution allowed.

3. One, two, three. A refund going to only one account can be done directly on IRS Form 1040. Prepare IRS Form 8888 to direct the refund to up to three accounts.

4. Watch out! If you use Form 8888, pay attention to the five cautions provided by the IRS on the instructions to ensure that you do not fall into any of those traps. The form can be found on the IRS’ website (www.irs.gov).

5. Follow-up, follow-up, follow-up. If the IRA deposit is meant to be for the prior year, make sure the institution will code it that way, and that it is received in time. If the refund amount is adjusted for math errors or tax adjustments, check which accounts on the form are affected. You may need to do an amended return if the IRA deposit is adjusted. If your refund is offset (e.g., because you owe past-due taxes), also check which accounts are affected. Again, you may need to do an amended return. If the funds go into the wrong account, deal with the institution to get the funds credited to the correct account.

Avoiding Spousal Beneficiary Mistakes in 5 Easy Steps

Fri, 10 Mar 2023 18:32:53 GMT

Who is a spouse beneficiary? A spouse beneficiary must be married to the account owner at

the time of the account owner’s death, and he or she must be named on the beneficiary form

(or inherit directly through the document default provisions). A spouse beneficiary has a number of

unique options.

1. Split the inherited account if necessary. A spouse beneficiary can take advantage of the

special spousal rules if they are the sole beneficiary of an IRA account. If other beneficiaries

have been named, the spouse can still take advantage of these special provisions by

transferring their portion of the inherited IRA to a separate account by December 31 of the year

following the year of the IRA owner’s death.

2. Will a spouse beneficiary need money prior to 59½? If a spouse beneficiary needs money

from the IRA prior to age 59½, they will likely want to remain a beneficiary of the inherited

account. Death is an exception to the 10% early distribution penalty, so by staying as a

beneficiary they’ll avoid paying the 10% penalty. The account should be retitled as a properly

titled inherited IRA. A spouse that remains a beneficiary does not need to take RMDs from the

account until the year the deceased spouse would have turned 73.

3. Transfer the inherited IRA into a spouse beneficiary’s account. A spouse beneficiary

should generally roll the inherited IRA into their own name. Once a younger spouse beneficiary

reaches age 59½, there’s no advantage to remaining a beneficiary, and a spousal rollover or

transfer should be done. NO other beneficiary has this option. By doing this rollover or transfer,

a surviving spouse ensures that eligible designated beneficiaries will be able to stretch

distributions over their own life expectancies.

4. Name new beneficiaries. A surviving spouse should name their own beneficiaries. If no

beneficiaries have been named and the surviving spouse dies, the remaining assets will pass

according to the default provisions in the custodial document. This is frequently the estate of

the now deceased spouse, which could require a shorter payout period for beneficiaries or add

unnecessary time and expenses by tying the assets up in probate.

5. Consider a disclaimer. Before taking any action regarding an inherited IRA, a surviving

spouse should evaluate whether a full or partial disclaimer would be advantageous. By using

a disclaimer, some or all of the inherited IRA can be passed to contingent beneficiaries,

potentially extending the stretch IRA and reducing the future impact of estate taxes for eligible

designated beneficiaries.

Choosing the Right Financial Advisor

Fri, 10 Mar 2023 18:15:52 GMT

Why do you need a financial advisor? Today’s financial landscape is as complicated as ever. A good

financial advisor can help you navigate this complexity so that you can make educated, informed

decisions on what is best for you and your family.

1. Ask for references. Ask your CPA or estate planning attorney. In many cases, they already

have a working relationship with a financial advisor. You should also consider asking friends

and family members for a recommendation if they are in a similar stage of life and financial

situation.

2. Don’t overemphasize credentials. It seems as though there are many credentials available

to financial advisors. Some credentials require significant levels of education, passing scores

on exams and adherence to strict codes of professional conduct. Many credentials, however,

can be earned with virtually no effort or education at all. The bottom line is that the decision

of what financial advisor to hire should be made based on more than just the letters after

their name.

3. Find a specialist. The term “Financial Advisor” is highly generic and can be used to

describe many different types of professionals in the financial services field. When shopping

around, find an advisor who specializes in your area of concern. If you had a heart problem,

would you rather see your family doctor or a cardiologist? The same principle should apply

to your financial advisor.

4. Ask about education/training. Most financial advisors routinely participate in what are

called “advanced training” classes. Many times these classes are heavy on sales training and

light on “real” education. If you really want to know what your advisor has studied, ask to

see the manual from the last educational conference he or she attended. If it has more sales

information than technical information... Beware!

5. Don’t be afraid to get a second opinion. Your IRA, 401(k) or other retirement account may

be the largest single asset you own. If you’re not sure about the advice you’ve been given,

don’t be afraid to get a second opinion. If an advisor tells you that there’s no need for one,

they’re probably not confident in the information and recommendations they provided to you

in the first place.

Recharacterizing an IRA/Roth Contribution in 5 Easy Steps

Fri, 10 Feb 2023 20:39:31 GMT

What is a recharacterization?

In the simplest of terms, a recharacterization is an “undo.” It treats an IRA contribution as if it were

made as a Roth contribution and vice versa.

1. Meet the deadline. A recharacterization must be completed by October 15 of the

year after the year for which the contribution was made. That means that a January 10

contribution for the prior year must be recharacterized by October 15 of the current year,

but a January 10 contribution made for the current year can be recharacterized through

October 15 of the following year. If you miss the October 15 deadline, the only way to get an

extension is to go for a private letter ruling from the IRS.

2. Make a trustee-to-trustee transfer back to the receiving account. A

recharacterization must be made via a trustee-to-trustee transfer. It cannot be done using

a 60-day rollover.

3. Know the difference between the amount recharacterized and the total funds

transferred to the receiving account. The recharacterized amount is the total dollar

amount of the initial contribution you wish to undo. But, total funds transferred must

include the earnings (or losses) attributed to the recharacterized amount. Knowing the

difference between these two values will help make sure that the recharacterization is

properly reported on your tax return.

4. Find out your custodian’s policies. Under the tax code, you are allowed to

recharacterize all or just a portion of a contribution. Your custodian, however, may not be

as flexible. This is particularly common with annuities or other contractual investments. In

other cases, you may be restricted by account minimums that must be maintained.

5. Get your money back! If you recharacterize a Roth contribution to an IRA after you

have filed your tax return(s) for the year of contribution, you will need to file an amended

return(s) so the IRS and your state know that you are no longer responsible for tax on

the contribution. If you’ve already paid all or a portion of the tax, you’ll get those amounts

back… plus interest!

Choosing the Right Tax Professional in 5 Easy Steps

Fri, 10 Feb 2023 20:01:37 GMT

Why do you need a tax professional? Managing taxes during retirement will be the single most

important factor in determining your ultimate lifestyle. In addition to a financial planner and estate

planning attorney, a qualified tax professional is an integral part of any planning team.

1. Ask for references. Have you ever stopped to think about how you picked your doctor or

mechanic? Chances are you chose them because a friend or family member recommended

them based upon a positive experience. The same should be true of your tax professional.

Often times, people are afraid to ask for advice from those closest to them when finances

are involved, but picking the right tax professional is too big of a decision, so “do your

homework” and ask around.

2. Check for credentials. Not all tax preparers are CPAs. In fact, in many states, anyone can

prepare tax returns and call themselves a tax professional. Most serious tax professionals

will either be a CPA or an EA (Enrolled Agent). However, this does not necessarily mean that

they are competent enough in the retirement area to assist you.

3. Ask about experience. In most cases, you would opt for experience over a novice. Do

you really think your choice of a tax professional is that different? Sometimes, there is no

substitute for experience. Ask your tax professional about cases similar to your own, how

often they deal with them and how they typically handle them.

4. Ask about education/training. When most people think “CPA,” they think tax expert. But,

the rules governing retirement accounts are highly complex and are constantly changing. If

your tax professional is serious about this area of retirement planning, they will make sure to

stay up-to-date on the latest tax law changes. Make sure to ask about the last conference or

continuing education class they have attended on retirement planning.

5. Ask about continuity. Planning to maximize your retirement distributions and transfer your

wealth is not a one-time deal. Some of your most important decisions may not be made for

years, or even decades. If you don’t expect your tax professional to still be working, you may

want to ask what type of plan they have in place to make sure you will still receive the high

level of advice you deserve when you need it the most.

Navigating the Health Care Taxes in 5 Easy Steps

Thu, 19 Jan 2023 16:59:02 GMT

What is considered investment income? Investment Income: Interest, dividends, capital gains (long and short), annuities (not those in IRAs or company plans), royalty income, passive rental income, other passive activity income. NOT Investment Income: Wages and self-employment income, active trade/business income, distributions from IRAs, Roth IRAs and employer plans, excluded gain from the sale of a principal residence, municipal bond interest, proceeds of life insurance policies, veterans’ benefits, Social Security benefits, gains on the sale of an active interest in a partnership or S corporation.

Identify the surtax income thresholds. The first step is to know the MAGI (modified adjusted gross income) thresholds to avoid the 3.8% surtax on net investment income. They are as follows: Married Filing Jointly ($250,000); Individuals ($200,000); Married Filing Separately ($125,000); Trusts and Estates ($14,450 for 2023). Trusts and estates are hit particularly hard with the surtax kicking in at a much lower income level.
Look at TAXABLE income. Taxable income from all sources can push taxpayers over the MAGI threshold and cause their investment income to be subject to the 3.8% surtax. Income tax-free Roth distributions will NOT affect MAGI.
Understand how much will be taxed . The 3.8% surtax is imposed on the lesser of (1) net investment income or (2) the amount of MAGI over the applicable income threshold. Taxpayers with income below those MAGI levels will NOT be subject to this tax.
Know other health care tax provisions. The 3.8% surtax gets the attention, but there is also an additional 0.9% Medicare tax on wages and self-employment income over the MAGI thresholds. Also, medical expenses must exceed 7.5% of AGI to be deductible. That 7.5% also applies to the medical expense exception to the 10% penalty on early IRA or plan withdrawals.
Discuss these tax planning points. You need to know that while IRA and plan distributions are exempt from the surtax, taxable distributions from these accounts can push income over MAGI thresholds. Roth conversions can be a valuable tool to eliminate future taxable income, especially for taxpayers with significant investment income or a discretionary trust as their IRA beneficiary. However, conversions could push you above your threshold in the short-term. Salary deferrals (401(k)s for example) can reduce MAGI for the 3.8% surtax but NOT earned income for the 0.9% additional Medicare tax.

Avoiding 60-Day Rollover Mistakes in 5 Easy Steps

Thu, 19 Jan 2023 16:52:29 GMT

Do trustee-to-trustee transfers instead. The best way to avoid making a 60-day rollover mistake is to avoid 60-day rollovers! Transfer your funds directly to another retirement account. Not only does a direct transfer avoid any 60-day time problems, but if the rollover is coming from a 401(k) or other qualified plan, it will also avoid the mandatory 20% withholding requirement.
Make checks payable to new IRA custodians. Sometimes the only way a custodian will distribute an IRA or other retirement account money is in the form of a check. There is a special rule that allows a distribution by check to qualify as a direct rollover (and avoid the 60-day rules) when the check is made payable to the new IRA. For example, your check might read “Custodian X f/b/o (for benefit of) John Doe IRA.”
Keep track of when you receive your distribution. Few people know when the 60-day clock actually begins. It starts when you receive the distribution. The few days between when the check was issued and when you actually received it may make all the difference in the world.
Check to make sure the funds were deposited into the correct account. A common mistake occurs when funds are accidentally deposited into a non-retirement account. Once you’ve deposited the funds or sent them to your financial institution, take five minutes out of your day to make sure they have arrived at their intended destination. If the mistake is discovered within 60 days it can be corrected.
Be aware of the once-per-year IRA rollover rule. You are limited in the number of 60-day rollovers you can make in a 365-day period. The once-per-year rollover rule applies only to 60-day rollovers from IRA to IRA or from Roth IRA to Roth IRA. Under the rule, once funds have been rolled over as a 60-day rollover, no other 60-day rollovers can be done by the account owner within the next 365 days. For this rule, IRAs and Roth IRAs are counted together.

What’s your money personality?

Fri, 09 Dec 2022 21:44:57 GMT

Discovery Your Money Personality Type & Take Control of Your Choices

How would you describe yourself in two or three words? Extroverted, charming, or adventurous? Reserved, cautious, or serious? Optimistic or fair-minded?

Whatever you say, there are really good chances others don’t see you in the same way. In fact, even though most of us think we’re pretty self-aware, we aren’t¹. That means most of us don’t really know who we are, how we fit in, or how others see us². And most of us don’t have a really deep understanding of our strengths and limits – or how our individual personality sets us apart and affects our relationships².

Why should you care? Because if you’re falling short in the self-awareness department, you’re probably coming up short in life too¹. By the way, that’s not limited to our personal and professional lives. It also extends to our financial lives. Each of us has our own money personality². We all react to and feel differently about money. And if we’re not really in touch with those emotions, we’re not going to be able to make the best moves with our money².

So, what do you actually know about your money personality? Let’s find out by taking a look at the different money personality types and how each one naturally uses and reacts to money.

Your Fast, Fun Guide to 5 Different Money Personality Types

#1: The Busy Bee

Money Superpower: Giving your all to your work and your money-making endeavors.

Personal Pitfall: Always putting work and wealth ahead of your relationships and experiences.

Most Likely To: Be one of the hardest working people in any room and do the extra work to get ahead financially.

#2: The Saving Squirrel

Money Superpower: Saving money and squirreling away wealth, even if you have no plans on how to spend it.

Personal Pitfall: Letting a fear of “losing” or spending money prevent you from ever really enjoying it.

Most Likely To: Know the best rates, deals & bargains and have the biggest rainy-day fund.

#3: The Lavish Lion

Money Superpower: Showing your generosity and treating others and/or yourself to the finer things, even when there’s no “occasion”

Personal Pitfall: Giving into lifestyle creep, going overboard, and losing site of financial options that could be better than spending right now.

Most Likely To: Be the life of the party, take risks, and be the best shopping buddy.

#4: The Indifferent Iguana

Money Superpower: Not sweating the small stuff financially, not stressing about money, and being resilient to uncertainty.

Personal Pitfall: Not thinking about money when making important decision or starting to think of money as “evil”.

Most Likely To: Think money isn’t the key to happiness.

#5: The Concerned Camel

Money Superpower: Keeping a close eye on your money and planning for worst-case scenarios.

Personal Pitfall: Obsessing about losing or running out of money or letting your fears get in the way of opportunities to enjoy life or level-up your wealth.

Most Likely To: Know where the exits are in any room and have a back-up plan for the worst-case scenarios.

Most of us have money personalities that combine multiple “types.”

How Your Money Personality Can Be a Tool for Reaching Your Financial Goals

So, what personality describes you best? Whatever it is, remember, there are no “good” or “bad” types. And many folks aren’t’ defined by just one “type.”² Actually, most of us have money personalities that blend at least a few different “types.”² Zeroing in on those types is how you get to know your natural skills and Achilles heals when it comes to finances. And that’s the only way you can really start to figure out how to improve your financial wellbeing, make better financial choices, and give yourself an even better financial outlook².

How does knowing your money personality help you do any of that? Well, let’s say, you’re a Saving Squirrel or a Busy Bee. Instead of squirreling away every penny or staying in worker-bee-earner mode all the time, start investing some money and time into meaningful experiences that enrich your life.

If you’re more of an Indifferent Iguana, you don’t have to start thinking about money all the time – but make it a point to know where your money goes.

And if the Lavish Lion characterizes you better, you may want to practice conscious spending before you splurge on big things.

The bottom line? Book smarts alone may not make you better with your money. And it may not be the one key to staying on track with your big financial goals. Knowing the ins and outs of your money personality is important too. So is the right plan and being able to get advice from people you trust.

Sources:

¹ https://www.betterup.com/blog/what-is-self-awareness

² https://www.cnbc.com/2021/04/28/7-money-personality-types-and-the-pitfalls-of-each.html

Harness The Power of Your Money Mindset

Tue, 22 Nov 2022 17:57:28 GMT

Money is much more than a medium of exchange for goods and services.

Money reflects our personal values and the hard work we put into earning it. How we treat money, save it and spend it, is a reflection of our internal beliefs — our money mindset.

When it comes to money, we all have strongly held beliefs, whether or not we realize it. Many of these beliefs grew out of childhood and come from lessons we learned from our families or picked up through life experiences.

Why does mindset matter?

Because understanding our internal beliefs helps us make smarter financial decisions and avoid the behaviors that damage financial health.

So, how much do you know about your money mindset?

Answer the questions below to discover more about your money beliefs and unlock key insights about your mindset and the behaviors holding you back from achieving your financial goals.

FINANCIAL LESSON: Your Mindset is the Key to Financial Health

What does the word "money" bring to mind? Are the associations positive or negative?

Beliefs about money are complicated. It's a symbol of one's self: respect, love, freedom, control, power, worth, and much more (depending on the person).

Having a healthy relationship with money and using it to create success require you to understand the beliefs and internal scripts driving your behavior. Trying to build strong financial habits without the right mindset is like driving down the highway with your emergency brake on.

As a financial professional, I think about wealth in terms of the opportunities it offers and as a tool for good. But, I've realized that everyone who walks in my office doesn't view money the same way. For some people, money is uncomfortable and something they'd rather not think about. Others tie wealth to their definitions of success and self-worth.

I don't think one mindset is better than the other.

What's important is understanding your own beliefs and identifying how they drive your decisions and your behavior. If you can recognize the negative aspects of your money mindset, you can manage your emotions and fears better—and you can recognize and start to change bad habits.

Identifying and changing negative behaviors associated with your mindset are key to making the best financial decisions.

If you're looking to understand how to shift your money mindset and improve it, I'm here to help. One of the best services I can provide is that of a financial coach and accountability partner.

I'd be happy to chat with you and shed more light on your money mindset. Give my office a call at 720.897.TIME (8463) or shoot me an email at tyler@oliverassetmanagement.com .

How The Bright Side of Uncertainty Can Enrich Your Life

Tue, 22 Nov 2022 17:40:50 GMT

Let’s imagine you’re standing in front of two doors.

You have two options.

Open Door 1 and get an ELECTRIC SHOCK.

Or choose the mystery behind Door 2 .

Door 2 could be better or worse than Door 1, but you won't find out until you open it.

What do you choose?

Which door would you open?

Most folks would open Door 1. (1)

That's because most of us would rather have certain pain than gambling with the unknown. And that's true even if we have a 50-50 shot at getting something better, not worse, with Door 2. (1)

Why?

Because we crave certainty. We're calmer when we know what to expect — even if it's certain pain — because we can prepare for it. (1)

With uncertainty, we're hyper-vigilant to the possibility of pain. We're constantly on edge, waiting for the ball to drop. (1)

That's stressful and exhausting up until the moment we get certainty. And that waiting and worrying creates its own pain, no matter what outcome we get. (1)

That's how uncertainty hijacks our mind and outlook.

And that can backfire BIG time.

How?

It closes us off from the priceless opportunities that can come with uncertainty.

And that means we miss the chance to take advantage of all the good that uncertainty can really do for us.

So, what type of lemonade can we make from the lemons of uncertainty?

Let's find out by looking at some of the incredible silver linings of uncertainty.

7 SURPRISING ADVANTAGES OF EMBRACING THE BRIGHT SIDE OF UNCERTAINTY

1. Uncertainty...Inspires New Thought

The unknown can captivate us. It upsets our assumptions and expectations. And it makes us pay attention and think more deeply. That can get us to think outside of the box and open us up to new possibilities we wouldn't have considered otherwise.

2. Uncertainty...Builds Character

With the unknown, our choices may be the ONLY things that are 100% in our control. That can really put our judgment, our values, and our beliefs to the test. And it gives us the opportunity to learn from novel experiences, take on new challenges, and truly grow.

3. Uncertainty...Gives Us a Reality Check

Unexpected new situations can peel back our blinders and open our eyes to what's really going on. That can ground us, so we're not chasing rainbows. It also empowers us to recognize the difficulties we face, so we can actually work through them, instead of ignoring them and hoping they'll go away.

4. Uncertainty...Spotlights Our Priorities

Big uncertainties mute the little worries and distractions in our lives. When we don't know what's coming next, we're forced to focus on what really matters. As we do, our priorities can be a comforting safety net to fall back on — and a roadmap that gives us direction to move forward with confidence.

5. Uncertainty...Makes Us More Resilient

Every time we deal with uncertainty, we face novel challenges — and new chances to adapt, improvise, flex our skills, and endure. That can strengthen our mental game and keep us flexible when things go off course. It can also give us better strategies for bouncing back, solving problems, and persevering. (2)

6. Uncertainty...Makes Us Grateful

When everything's up in the air and nothing feels certain, it's much easier to appreciate what we DO have — like our relationships, our health, or our career. The gratitude we have for those dependable joys can keep us positive and clear-headed in the face of uncertainty. And that can help us get better at dealing with it and taking advantage of its silver linings. (3)

7. Uncertainty...Adjusts Our Perspective

Without surprises, we tend to roll along with life. Uncertainty can stop us in our tracks. It gives us a chance to pause, stand back, and look at the bigger picture. That can give us a fresh outlook and a big-picture perspective. It can also help us make better choices, no matter what type of uncertainty we're facing. (4)

FINANCIAL LESSON: ENJOY A MORE FULFILLING LIFE BY LEARNING HOW TO DEAL WITH UNCERTAINTY BETTER

Have you experienced any of those windfalls of uncertainty?

Whether you have or not, you’ll have another chance to in the future.

That’s because, like it or not, uncertainty is an unavoidable part of life.

Big or small, those unknowns can pop up at any time. And they can make us unsure about our options, our choices, and our future.

But it’s not all bad.

Uncertainty can be wonderfully rewarding.

In fact, like life, uncertainty can become what you make of it — and how you approach it can make ALL difference in what you get out of it.

That’s why it pays for us to get better at living with uncertainty.

If we can do that, the silver linings can become golden opportunities for us to grow and prosper.

So, how do we approach uncertainty better?

We can start by accepting it, instead of resisting it.

And we can focus on the positive and check ourselves when we’re spiraling into the worst-case what-ifs.

We can also turn to someone we trust for support and words of reason.

Sincerely,

Boston Independence Group

Sources:

1 - https://www.psychologytoday.com/us/blog/the-right-mindset/202002/why-uncertainty-freaks-you-out (2020)

2 - https://www.mpi.org/blog/article/building-resiliency-in-uncertain-times (2020)

3 - https://www.health.harvard.edu/healthbeat/giving-thanks-can-make-you-happier (2021)

4 - https://knowledge.wharton.upenn.edu/article/perspective-taking-brain-hack-can-help-make-better-decisions/ (2021)

Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.

This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.

Avoiding Financial Mistakes in a Divorce in 5 Easy Steps

Tue, 11 Oct 2022 19:20:09 GMT

Retirement accounts and divorce . When a divorce occurs, the financial assets of a couple, including their retirement accounts, are often split. If mistakes are made during this process, the stress of a divorce can be compounded when one or both spouses find that they are subject to unnecessary taxes or penalties.

1. IRAs in divorce. To properly divide an IRA as a result of a divorce, specific language on the structure of “who gets what” should be included in the marital settlement agreement (MSA) or other divorce agreement. A copy of this executed agreement should be given to the IRA custodian. The money should NOT simply be withdrawn from the IRA and given to the other spouse, as this would be treated as a taxable distribution for the IRA owner. The funds should instead be transferred to the receiving spouse’s IRA.

2. Qualified plans in divorce. Qualified plans can’t be split by an MSA or divorce agreement. They require a special court order, known as a Qualified Domestic Relations Order (QDRO). Once a QDRO has been issued, it should be sent to the qualified plan’s administrator. The terms of the plan will determine when the spouse receives the funds. In some plans, a lumpsum distribution will be available immediately, while in other plans, benefits may not be payable until the ex-spouse has a triggering event.

3. What to do with the received funds. If you are receiving a portion of an IRA, you will likely want to move the funds over to your own IRA to avoid incurring tax and possibly the 10% early distribution penalty. However, if you are receiving a distribution pursuant to a QDRO, you will want to consider if you will be using any of the funds prior to age 59 ½. Funds received directly from a plan under a QDRO are exempt from the 10% penalty. If you roll those funds over to an IRA and later take a distribution prior to age 59 ½, the 10% early distribution penalty will apply.

4. Name new/update beneficiaries. One of the most common mistakes after a divorce is the failure to properly update beneficiary forms. This is NOT something that should be overlooked. There have been many documented cases where a failure to properly update beneficiary forms led to an ex-spouse receiving funds that were intended for children or even a new spouse. DON’T let this happen to you.

5. Reassess retirement preparedness. For many, a divorce is an emotionally draining and traumatic event. But for some, the emotional impact is compounded by a significant change to personal finances. So just like any other major life event, it’s beneficial to reevaluate your retirement and financial plans to determine the best course of action.

Frank Oliver is a member of Ed Slott’s Master Elite IRA Advisor Group and is dedicated to helping diligent savers enter the second half of retirement with a plan to help avoid tax and distribution planning risks that can wipe away the sacrifice and hard-earned money made during their working years.

Frank attends regular trainings and conferences to stay up to date on the changing tax laws and evolving strategies to best help Colorado retirees avoid potential tax hikes and help reduce their tax bills in retirement.

Get access to Oliver Wealth Management's Exclusive Ed Slott Master Elite IRA Toolbox for tools, strategies and resources to help you develop your IRA and retirement tax minimization strategy.

Advisory services offered through CreativeOne Wealth, LLC a Registered Investment Adviser. CreativeOne Wealth, LLC and Oliver Asset Management are unaffiliated entities. Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional tax advice for applicability to your personal situation.

5 Costly Mistakes You Could Be Making With Your Life Insurance Policy

Tue, 11 Oct 2022 18:49:01 GMT

Life insurance is your shield against unexpected (or eventual) hardship. The proceeds, type and timing of the insurance need to be tailored to individual and family needs. Having too much insurance could cost thousands in the long term. And the implications of having none or not enough are worrisome. Here are the five biggest mistakes families make with life insurance policies and how you can avoid them.

Mistake #1: Underestimating Your Cost of Living

Unfortunately, many individuals are forced to go through their spouse’s life insurance benefits within a matter of months, leaving very little sustainability. And having children can make this even more challenging. According to the USDA, the average cost to raise a child through to the age of 17 is just over $233,000, not including college.1

Get an unbiased, no-nonsense analysis of your current insurance needs to protect you and your family against financial hardship. And, check your policy and see if you and your loved ones could maintain your current or future cost of living. Knowing what your family will require will allow you to update your insurance to meet those goals.

Mistake #2: Misunderstanding Your Term Life Insurance Coverage

If you carry a low-premium term insurance policy, then you’re paying lower premiums for higher coverage. However, your premium and payout amounts will fluctuate with age. In this way, relying on term insurance is equivalent to renting a home. You gain no equity in your account, and the longer you live, the more the insurance companies profit.

Consider buying insurance policies where your premiums build equity and provide an insurance safety net. There are many life insurance products on the market and making the right choice can be challenging. Make sure you get advice from an insurance expert and tailor your portfolio accordingly.

Mistake #3: Overpaying For a Policy

A single person with no dependents needs only enough insurance to cover burial costs. Even though life insurance is cheaper for the young, buying big coverage earlier in life could be costly and a waste of money.

Adjust your life insurance needs to your life changes to eliminate monetary concerns for your loved ones upon the event of your passing. This way you don’t overpay for a policy that you won’t need.

Mistake #4: Purchasing Too Many Policies

Banks, airlines, car rentals and even credit card companies offer life insurance policies. These policies are incredibly profitable to the provider but are rarely collected on.

Instead, purchase life insurance from an insurance provider. And, if your provider covers all of your concerns, then avoid purchasing insurance from unnecessary sources.

Mistake #5: Neglecting to Reassess Your Policy

You don’t want to wait till a tragic event occurs to check your insurance policy. Many life changes elicit a review of your current policy. You should always have at least two backup beneficiaries. Are they current? What about making the children backup recipients?

Generally, it’s a good idea to review and update your insurance policy every three years. This is especially important if you rely on term insurance with time limits, as gaps in coverage can affect the term of your policy.

Understanding common life insurance mistakes can help you determine your current and future needs, and save money in the long run. Make sure to always consult your insurance provider before making any changes to your life insurance policy.

https://www.usda.gov/media/blog/2017/01/13/cost-raising-child

Get access to Oliver Wealth Management's Exclusive Ed Slott Master Elite IRA Toolbox for tools, strategies and resources to help you develop your IRA and retirement tax minimization strategy.

Social Security: Choosing When to Claim

Mon, 12 Sep 2022 16:44:44 GMT

One of the most critical decisions you can make regarding your retirement is when you choose to claim Social Security. Deciding when to claim Social Security can make a difference in your monthly bottom line.

Before You Retire

Your monthly Social Security Benefit amount is calculated based on the number of years you have worked and the taxes you have paid into the Social Security Benefits program. Social Security counts the years you have paid taxes as “credits” for years that you have worked. For example, if you were born in 1929 or afterward, you must have 40 credits to receive Social Security benefits when you retire. This is equal to about 10 years of work.1

Your benefit amount is also calculated by the number of credits you have earned during your working years. Fortunately, the Social Security Administration has made it easier for you to verify your expected benefits by setting up an online account. It is worth double-checking your earnings to catch errors, if any, and factor in your expected benefits as you strategize for retirement.1

What Age Should You Claim?

There are several ages that should be considered when deciding when to claim Social Security.

Early Retirement Age: The earliest age you can claim Social Security benefits is 62. However, if you claim Social Security early, you'll receive a lower monthly payment as compared to waiting until the full retirement age.1,2
Full Retirement Age: This is the age when you are eligible to receive the full amount of your Social Security benefits. The full retirement age is calculated based on the year you were born. For example, for those born between 1943 and 1954, the full retirement age was 66. If you were born between 1955 and 1960, the full retirement age goes up to 67.1,2
Delayed Retirement Age: You can also delay the claim of your retirement benefits until age 70. If you wait until then, you will continue earning benefits. However, benefits stop accruing at age 70, so there may not be any reason to delay the claim of benefits past age 70.1,2

Deciding when to claim Social Security benefits is an important decision to make as you approach your retirement age. Talk with Oliver Asset Management and they may be able to help you decide the best time for you to apply for Social Security.

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Get access to Oliver Wealth Management's Exclusive Ed Slott Master Elite IRA Toolbox below for tools, strategies and resources to help you develop your IRA and retirement tax minimization strategy.

Retirement Strategy: How Much Should I Save?

Mon, 12 Sep 2022 16:42:17 GMT

"Will I outlive my retirement money?" This is one of the top fears for people who are starting to prepare for their retirement years. Determining how much money you need in retirement is a process. It shouldn't be a number that you pull out of thin air.

The process should include looking at your current financial situation and developing an approach based on your goals, time horizon, and risk tolerance. The process should take into consideration all your potential sources of retirement income, and also may project what your income would look like each year in retirement.

We all have our "blue sky" visions of the way retirement should be, yet our futures may unfold in ways we do not predict. So, as you think about your "second act," you may want to consider some life and financial factors that can suddenly arise.

You may see retirement as an extension of the present rather than the future.

This is only natural, as we all live in the present, but the future will arrive. The costs you have to shoulder later in retirement may exceed those at the start of retirement. As you may be retired for 20 or 30 years, it is wise to take a long-term view of things.

You may have a health insurance gap.

If you retire before age 65, what do you do about health coverage? You may shoulder 100% of the cost.

Suppose you become disabled or seriously ill, and working is out of the question. How will you make ends meet?

Age may catch up to you sooner rather than later.

You may stay fit, active, and mentally sharp for decades to come, but if you become mentally or physically infirm, you need to find people you can trust to manage your finances.

You could be alone one day.

As anyone who has ever lived alone realizes, a single person does not simply live on 50% of a couple's income. Keeping up a house or even a condo can be tough when you are elderly. Driving can also be a concern. If your spouse or partner is absent, will someone be available to help you in the future?

These are some of the blind spots that can surprise us in retirement.

They may quickly affect our money and quality of life. If you age with an awareness of them, you will be able to manage the outcome better.

Your workplace retirement account can play a critical role in your overall retirement strategy. However, some people have gone further with such accounts than others, especially recently.

Much has been written about the classic financial mistakes that plague start-ups, family businesses, corporations, and charities. Aside from these blunders, some classic financial missteps plague retirees.

Calling them "mistakes" may be a bit harsh, as not all of them represent errors in judgment. However, whether they result from ignorance or fate, we need to be aware of them as we prepare for and enter retirement.

Timing Social Security.

As Social Security benefits rise about 8% for every year you delay receiving them, waiting a few years to apply for benefits can position you for higher retirement income. Filing for your monthly benefits before you reach Social Security's Full Retirement Age (FRA) can mean comparatively smaller monthly payments.

Managing medical bills.

Medicare will not pay for everything. Unless there's a change in how the program works, you may have a number of out-of-pocket costs, including dental and vision care.

Underestimating longevity.

Actuaries at the Social Security Administration project that around a third of today's 65-year-olds will live to age 90, with about one in seven living 95 years or longer. The prospect of a 20- or 30-year retirement is not unreasonable, yet there is still a lingering cultural assumption that our retirements might duplicate the relatively brief ones of our parents.

Withdrawing strategies.

You may have heard of the "4% rule," a guideline stating that you should take out only about 4% of your retirement savings annually. Some retirees try to abide by it, but others withdraw 7% or 8% per year. Why is this? In the first phase of retirement, people tend to live it up. More free time naturally promotes new ventures and adventures and an inclination to live a bit more lavishly.

Talking About Taxes.

It can be a good idea to have both taxable and tax-advantaged accounts in retirement. Assuming your retirement will be long, you may want to assign this or that investment to its "preferred domain," which means the taxable or tax-advantaged account that is most appropriate for it as you pursue a better after-tax return for your entire portfolio.

Retiring with debts.

Some find it harder to preserve (or accumulate) wealth when you are handing portions of it to creditors.

Putting college costs before retirement costs.

There is no "financial aid" program for retirement. There are no "retirement loans." Your children have their whole financial lives ahead of them.

These are some of the classic retirement mistakes. To help you avoid them, take some time to review and refine your retirement strategy with the help of Oliver Asset Management.

Get access to Oliver Wealth Management's Exclusive Ed Slott Master Elite IRA Toolbox below for tools, strategies and resources to help you develop your IRA and retirement tax minimization strategy.

Leaving a Legacy 3 Differences Between Life Insurance and Roth IRAs

Fri, 22 Jul 2022 18:26:30 GMT

Roth IRAs are always included in your estate.

Thanks to the current $11.7 million federal exemption amount — the amount that can pass estate tax-free to beneficiaries — estate tax concerns are nowhere near what they used to be. The overwhelming majority of Americans will not owe any federal estate tax when they die. Still, there’s a small segment of the population that has to contend with such concerns. Plus, a number of states still impose state estate taxes, and many of those states have set their own exemption amounts much lower than that of the federal level. In such cases, life insurance may offer an advantage over Roth IRAs.

Here’s the deal in a nutshell. The “I” in IRA stands for individual. This means it’s always yours, and the value of your Roth IRA is always included in your estate. If you’re above the federal estate tax exemption amount or your applicable state estate tax exemption amount, your beneficiaries could end up owing estate tax — at the federal level, state level or both — on what you thought were “tax-free” Roth IRA assets. In contrast, life insurance can be structured so that it’s outside of your estate. Not only does this produce an income tax-free benefit to your heirs but also one that is not subject to estate tax, regardless of the value of your estate when you die.

In other words, it is a truly tax-free benefit. There are a variety of ways to accomplish this, including having an irrevocable trust purchase the life insurance policy. To figure out the option that is best for you, consult with your insurance advisor, tax professional or estate planning attorney — or better yet, all three!

There’s a limit to the amount you can contribute to a Roth IRA.

When it comes to the tax code, there is a giant hole for life insurance. Insurance carriers may limit the amount of insurance they’ll offer you based on a variety of factors, including your health, annual income and net worth. That has absolutely nothing to do with the tax code. As far as Uncle Sam is concerned, you can have as much insurance as you want, or perhaps, as much as you can get. In contrast, if you want to make annual Roth IRA contributions, you’re fairly restricted. For 2021, you cannot contribute more than $6,000 ($7,000 if age 50 or older by the end of the year) to a Roth IRA. You can, however, convert any existing IRA or eligible retirement plan funds to a Roth IRA.

If you had no income, you could simply pay for life insurance premiums from your existing assets (although in reality, if you have assets, you’re almost certainly going to have some income, even if it’s just interest). There are issues on the other side of the spectrum too. If you have too much income, from whatever sources, you are prohibited from making any Roth IRA contributions. To see those limits, click here. With life insurance, there’s no limit to the amount of income you can have. In fact, all things being equal, you can generally qualify for more life insurance with a higher income.

There are no RMDs for life insurance.

When you leave a Roth IRA to non-spouse beneficiaries, such as children, they must generally receive the entire IRA account by December 31 of the tenth year after they inherit. These distributions are usually tax free, but they must be taken nonetheless. When beneficiaries inherit life insurance, there are no RMDs (required minimum distributions) to worry about. While not having to deal with RMDs is nice, it doesn’t necessarily make life insurance a better option for your planning than a Roth IRA. Consider the following: when a beneficiary inherits life insurance, the only amount they’ll receive tax free is the actual life insurance proceeds. If they don’t need the money right away, they might invest the proceeds, but whatever interest, dividends, capital gains or other income those investments generate will be taxable (unless they are invested in assets that don’t produce taxable income, such as municipal bonds). In contrast, the inherited Roth IRA generally does not have to be taken out until December 31 of the tenth year following the owner’s death. For example, take someone who inherited a Roth IRA at age 50. The Roth IRA can be left alone to grow for 10 years. That growth can later be distributed tax free as well. A beneficiary of a $500,000 life insurance policy will only receive $500,000 income tax free, while a beneficiary inheriting a $500,000 Roth IRA may receive twice that amount in tax-free distributions after 10 years.

A Final Thought

Get access to Oliver Wealth Management's Exclusive Ed Slott Master Elite IRA Toolbox below for tools, strategies and resources to help you develop your IRA and retirement tax minimization strategy.

Advisory services offered through Change Path, LLC a Registered Investment Adviser. Change Path, LLC and Oliver Asset Management are unaffiliated entities. Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional tax advice for applicability to your personal situation.

How Could the Behavior Gap Affect Your Investments During This Time of Market Volatility?

Fri, 22 Jul 2022 18:18:57 GMT

“It turns out my job was not to find great investments, but to help create great investors,” writes Carl Richards, author of “The Behavior Gap.”1 From increasing our budget mindfulness to taking a steadier approach to investing, Richards has drawn attention to the way our unexamined behaviors and emotions can be to our detriment when it comes to living a happy and financially sound life.

In many cases, we make poor financial decisions when experiencing panic or anxiety as a result of personal or widespread events. Below we discuss the common financial behaviors driven by such circumstances.

The Behavior Gap Explained

Coined by Richards, “the behavior gap” refers to the difference between a smart financial decision versus what we actually decide to do. Many people miss out on higher returns because of emotionally driven decisions, creating a gap — “the behavior gap” — between their lower returns and what they could have earned.

4 Common Emotions that Can Create a Behavior Gap

#1: Excitement When Stocks Are High

Whether in a bull market or witnessing the hype from a product release, many investors may feel tempted to increase their risks or attempt to gain from emerging investments when stocks are high. This can lead to investors constantly readjusting their portfolios as the market itself experiences upswings. An investor who follows such patterns is likely to do the same with declines and may end up trying to time the market amidst its inevitable, unpredictable movement.

#2: Fear When Stocks Are Low

In response to market volatility, investors may feel the need to choose more secure investments and avoid uncertain or seemingly unsafe investments. When stocks are low, a common response may be to sell and effectively miss out on potential long-term gains.

#3: Engagement in the Search for Alpha

People yearn to make money and take action to do so. Throughout our lives, this emotional desire is likely a constant one. As such, many seek the help of a financial professional to procure above-average returns, otherwise known as “alpha.”1 However, in this search for “alpha,” our humanness — our emotions and our behaviors — may lead us astray. Ironically, studies done by DALBAR have calculated the “average investment return” as compared to investor returns and have shown that investor returns are lower.1 The underlying emotional desire and pursuit of money is exactly the recipe for unwise behaviors in response to emotions — but only if left unchecked.

#4: Short-Term Anxiety and Focus

As humans, viewing aspects of our lives through the lenses of current circumstances is normal. One emotional response to any event, however, is letting the moment consume us, especially if faced with grave consequences — from our personal health being compromised to the loss of loved ones. Many may find it difficult in these times to both think long-term and to remember logic. However, making a rash decision can inhibit the long-term benefit that comes from maintaining a balanced perspective without reactionary behavior.

How to Lessen the Behavior Gap for Your Financial Health

At any given point, the market can go up, down or it can remain the same. While many aspects of the market are out of our control, one thing we can control right now is how we handle our financial strategy. Remembering the likelihood of recovery over time — and the market’s nearly inevitable up-and-down movement — can provide a more logical angle to calm the nerves.

If you’re experiencing financial anxiety, take a breath and also remember the potential for long-term gains. Of course, you can and should always reach out tous for further clarification and advisement.

https://behaviorgap.com/outperform-99-of-your-neighbors/

Advisory services offered through Change Path, LLC a Registered Investment Adviser. Change Path, LLC and Oliver Asset Management are unaffiliated entities. Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional tax advice for applicability to your personal situation.

To Convert or NOT To Convert in 5 Easy Steps

Thu, 30 Jun 2022 19:23:10 GMT

What is a Roth IRA conversion? A Roth IRA conversion is the process of moving IRA or employer plan assets to a Roth IRA.

1. When will you need the money?

2. Where will the money come from to pay the tax?

3. What do you think future tax rates will be?

4. Other reasons to consider a Roth IRA conversion.

You may have favorable tax attributes in the year of the conversion such as large charitable deductions, net operating losses and tax credits; you will not have to take required minimum distributions starting at age 72; you will have the ability to make contributions even after age 72 if there is eligible earned income; you can provide an income-tax-free inheritance to your heirs.

5. Other reasons to NOT consider a Roth IRA conversion.

You have an aversion to paying the income tax up front; you do NOT trust that the government will keep their tax-free deal; you plan to name a charity as your Roth IRA beneficiary, and it will NOT have to pay income taxes on the money it receives.

Get access to Oliver Wealth Management's Exclusive Ed Slott Master Elite IRA Toolbox below for tools, strategies and resources to help you develop your IRA and retirement tax minimization strategy.

Advisory services offered through Change Path, LLC a Registered Investment Adviser. Change Path, LLC and Oliver Asset Management are unaffiliated entities. Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional tax advice for applicability to your personal situation.

8 Step Summer Financial Checkup

Thu, 30 Jun 2022 19:13:38 GMT

It seems like when summertime hits, time slows down. The hustle and bustle of the holiday season is over, the taxes are complete and the vacation days are scheduled. If you find yourself with a bit of extra time on your hands in the upcoming months, you may want to use this opportunity to check in on your family’s finances. While doing a thorough analysis of your wealth may sound intimidating, we’ve broken it down into eight simple steps to keep you focused and on track.

Step 1: Analyze Your Budget

In early 2022, the Bureau of Economic Analysis reported that the personal savings rate is at only 6 percent.1 An effective way to avoid spending more than you’re earning is to step back and take stock of your monthly and annual budget. And if you don’t have a budget at all, use this time to make one.

Many credit cards or banks will offer categorical breakdowns of your spending, which can be a great way to find out what you’re spending the most money on and if there’s room to cut back. To get the best look at your spending habits, you may want to evaluate your savings and spending record over the past six to 12 months.

Step 2: Seek Out Tax Savings

Do you scramble to pull your paperwork together every March and April? This year, try taking a different approach to tax season by evaluating your tax-saving strategies early. You may want to work with your financial planner or tax professional to create a mock tax return, as this can help you understand your withholding options and tax-saving opportunities such as 401(k) or 403(b) options, IRAs and HSA contributions.

Focus on filing any time-sensitive deductions and brush up on changes in tax laws. Reaching out to your tax professional now could mean you have more time to prepare and strategize together for next year’s returns.

Step 3: Tackle Your Debt

An alarming 38 percent of adults carry credit card debt from month to month.2 If you’re guilty of putting off managing your amounting expenses, now’s the time to start planning to pay them off. While most consumers have some amount of good debt on their plate (mortgages, car payments, etc.), it’s the bad debt (credit card debt, student loans, etc.) that you’ll likely want to focus on managing and eliminating.

While you could be tempted to simply pay off what shows up on the bills each month, you may want to create a debt summary to get a better idea of your total debt’s big picture. By creating an annual debt summary, you and your financial professional can better understand whether you’re gradually working down the amount or falling farther into the hole.

Step 4: Revisit Short and Long-Term Goals

A lot can change in a year - marriage, death, divorce, growing your family and experiencing a major career change. Even seemingly small adjustments, like a job promotion or sending a kid off to college, can have a significant impact on your financial status. That’s why it’s important to regularly review your long-term goals and progress towards them while revisiting and evaluating your shorter-term goals as well.

Step 5: Evaluate Coverage and Providers

As you’re reviewing your budget and expenses, take the extra time to thoroughly evaluate your current providers and coverage options. This includes your internet, cable and wireless service providers in addition to your insurance coverage options. If you tend to set up auto payments and forget about your monthly bills, this could be an opportune time to revisit what it is you’re actually paying for.

Step 6: Reassess and Rebalance Your Portfolio

It’s important to visit your portfolio and risk tolerance regularly to help keep it in line with your tolerance, goals and market conditions. While most managed portfolios will be rebalanced automatically, it’s important to take stock of your investments’ big picture. Doing so can help you determine if you need to diversify differently or reassess your risk tolerance.

Step 7: Review Your Retirement Savings

Whether retirement is decades down the line or within the upcoming year, reviewing your retirement savings on an annual basis is a great habit to start. Take the time to assess whether or not you’re maxing out your retirement contribution options and how the savings you’re making today will translate into retirement income later down the line.

Step 8: Assess Your Estate Plan

It’s not fun to plan for the worst-case scenario, but leaving your family with an outdated will, trust or estate plan can lead to some major issues down the line. As you assess your legacy plan annually, make sure you’re accounting for any newly acquired assets (houses, cars, pets, etc.) while checking that your designated beneficiaries are still willing and able to assist in the event of your passing.

While you’re likely daydreaming of book reading, beach-going and backyard barbecuing this summer, don’t forget to do yourself a favor and squeeze in some financial assessment as well.

Advisory services offered through Change Path, LLC a Registered Investment Adviser. Change Path, LLC and Oliver Asset Management are unaffiliated entities. Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional tax advice for applicability to your personal situation.

Ed Slott’s Top 10 IRA Rollover Mistakes

ENewman@creativeone.com (Perry Boles) — Thu, 19 May 2022 13:46:07 GMT

1. IRA-to-IRA Rollovers and Roth IRA-to-Roth IRA Rollovers Mistakes:

Using 60-day IRA rollovers instead of using transfers to move IRA funds
Once-per-year rule is for all IRAs and Roth IRAs
IRS has no authority to correct these mistakes
New client rollover mistakes - not asking about prior rollovers
Not knowing the exceptions to the once per-year IRA rollover rule

2. Non-Spouse Rollovers are NOT Permitted

Non-spouse beneficiary cannot do a rollover
Taking a lump-sum distribution
Putting a decedent’s IRA funds into your own IRA
Paying out the entire IRA to a trust beneficiary

3. Spousal Rollovers Mistakes:

Spousal rollover before age 59½
Forgetting to do the spousal rollover at age 59½
Not naming a successor beneficiary of the inherited IRA

4. 401(k) Rollovers to IRAs Mistakes:

Not reviewing all options (IRA rollover is not the only option.
Receiving a distribution personally and being subject to 20% withholding
Not knowing the creditor protection of IRAs in your state
Not first asking about the NUA (net unrealized appreciation) tax break
Rolling over highly appreciated company stock to an IRA
Not allocating the after-tax portion (basis) to a Roth IRA tax free

5.After-Tax Rollovers From Plans to IRAs and Roth IRAs Mistakes:

Not being aware of the allocation rules that allow the tax-free Roth conversion of after-tax plan funds
Failing to allocate pre-tax and after-tax amounts to the correct account
Taking only after-tax funds out for taxfree Roth conversions (generally won’t work)
Rolling over all funds to a traditional IRA (rules do not apply to IRA distributions)
Choosing to receive all funds personall

6.Roth Conversions (Technically IRA-to-Roth Rollovers) Mistakes:

Not advising on the income impact of a Roth conversions (other taxes may be triggered or tax benefits lost)
RMDs (required minimum distributions) cannot be converted
Choosing to receive all funds personally
SIMPLE IRA cannot be converted until after 2 years
Inherited IRAs cannot be converted, but inherited company plan funds can

7. In-Plan Roth Rollovers (401(k) to Roth 401(k) Conversions) Mistakes:

Not asking if in-plan conversions are available in the plan
Not estimating the taxes due on the conversion
Not checking first if a Roth IRA conversion is available

8. Rollovers to Any Retirement Account (60-Day Rule) Mistakes:

Losing track of the 60-day deadline
Not knowing about the 20% mandatory withholding from plans
Not knowing about the self-certification procedures for late rollovers
Depositing the funds into a non-IRA account
Choosing a 60-day rollover instead of a transfer

9. QDRO Rollovers in Divorce (From Plans Only) to ExSpouse as Alternate Payee Mistakes:

Rolling over all of a qualified domestic relations order (QDRO) distribution to an IRA and then taking an IRA distribution before age 59½
Remember! A QDRO distribution is a 10% penalty exception, but only on distributions from the plans!
Not knowing that an IRA rollover voids the 10% penalty exception
Not knowing that QDROs do not apply to IRAs

10. Rollovers From IRAs Back to Plans Mistakes:

Rolling over basis into the company plan
Only pre-tax funds can be rolled to the plan
Failing to convert remaining IRA basis to a Roth IRA
Not asking if your plan accepts IRA rollovers
Not first checking plan restrictions on accessing funds (Funds are now subject to plan rules.)

Get access to Oliver Wealth Management's Exclusive Ed Slott Master Elite IRA Toolbox below for tools, strategies and resources to help you develop your IRA and retirement tax minimization strategy.

Advisory services offered through Change Path, LLC a Registered Investment Adviser. Change Path, LLC and Oliver Asset Management are unaffiliated entities. Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional tax advice for applicability to your personal situation.

Ed Slott Master Elite IRA Toolbox

We’re passionate about helping you prepare for your financial future. Get access to our Exclusive Master Elite IRA Toolbox to get all the tools and resources you need to get started building your retirement tax minimization strategy!

Secure Act 2.0: What could it mean for your retirement?

Thu, 19 May 2022 13:23:22 GMT

Secure Act 2.0 is on the way. The bill recently passed the House of Representatives in rare bipartisan fashion, with a 414 - 5 vote in favor.

You may remember the first Secure Act, which was signed into law by former President Trump in December 2019. That law raised the age for required minimum distributions from 70 ½ to 72. It also impacted 401(k) contributions, student loan repayments, and the use of annuities in 401(k) plans.1

If passed as currently written, Secure Act 2.0 would have an even greater impact. The bill could change the RMD age even further, plus alter things like RMD penalties, catch-up contributions, employer contributions, and more.2

Below are seven ways Secure Act 2.0 could affect your retirement strategy:

Raising the RMD age to 75.

Secure Act 1.0 raised the RMD age from 70 ½ to 72. Part 2.0 would push it out even further:

● Age 73 starting in 2023.

● Age 74 in 2030.

● Age 75 in 2033.

Catch-up contribution expansion.

Current law allows for employees age 50 and older to make catch-up contributions to their 401(k) each year in addition to their regular contributions. This year, the catch-up contribution amount is $6,500. Under Secure Act 2.0, that amount would increase to $10,000 for workers ages 62 to 64, beginning in 2024.3

Catch-up contributions become Roth contributions.

Under Secure Act 2.0, all catch-up contributions are treated as Roth contributions starting in 2023. That means that catch-up contribution dollars will be made with after-tax dollars. They still grow on a tax-deferred basis, and then distributions are tax-free after age 59 ½.3

New Roth matching contributions.

Secure Act 2.0 also allows employees to elect for their employer matching 401(k) contributions be made as Roth contributions. Again, these would be made with after-tax dollars, but would generate tax-free distributions in the future.3

Student loan matching contributions.

Secure Act 2.0 also formalizes an idea that the IRS has already approved. Secure Act 2.0 would allow employers to make matching contributions to 401(k) plans based on employee student loan payments. The contributions would vest on the same schedule as normal matching contributions.2

Reduced RMD penalties.

Under current policy, the penalty for a missed required minimum distribution is 50% of the missed distribution. Under Secure Act 2.0, that penalty would fall to 25%. 3

Automatic contributions.

Finally, Secure Act 2.0 would encourage retirement saving by requiring new 401(k) plans to automatically set new participants’ contributions at 3%, with 1% automatic increases each year up to a maximum of 10% contributions. Employees would have the opportunity to opt out of the automatic contributions.4

Secure Act 2.0 would mark a major change in retirement policy, and would also likely impact your strategy. It is not yet law, but given the bipartisan support of the bill thus far, it seems reasonable that it will pass.5

Let’s talk about your retirement income strategy and how it could be affected. That’s especially true if you will take RMDs or make catch-up contributions in the near future.

1. https://www.cnbc.com/2022/04/05/retirement-savers-may-benefit-from-secure-2point0-what-needs-working-out.html

2. https://finance.yahoo.com/news/secure-act-2-0-passes-120019436.html

3. https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/house-passes-secure-act-2-to-promote-retirement-savings.aspx

4. https://www.cnbc.com/2022/02/05/heres-whats-new-with-401k-plans-this-year.html#:~:text=Contribution%20limit%20changes&text=For%202022%2C%20you%20can%20put,not%20count%20toward%20these%20limits .

5. https://www.cnbc.com/2022/03/30/house-passes-secure-act-2point0-heres-what-it-means-for-your-retirement-.html

Licensed Insurance Professional. We are an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.

Advisory services offered through Change Path, LLC a Registered Investment Adviser. Change Path, LLC and Oliver Asset Management are unaffiliated entities. Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional tax advice for applicability to your personal situation.

Ed Slott Master Elite IRA Toolbox

Bond Market Downturn: What’s the Alternative?

Thu, 19 May 2022 13:22:41 GMT

The first quarter of 2022 was negative on nearly every front for investors. The S&P 500 lost more than 5%. International stocks lost more than 6%. The Russell 2000, which represents U.S. small cap stocks, declined nearly 9%. ¹

Even the bond market suffered. Bonds are often used to minimize risk and volatility, but they offered little stability for investors in the first quarter of 2022. The Bloomberg U.S. Aggregate Bond Index lost more than 6% in the first quarter, the worst loss for the index since 1980. ²

The first-quarter decline in the bond market isn’t a new phenomenon. In fact, the Bloomberg U.S. Aggregate Bond Index has declined 10.6% since its peak in August 2020. That’s the largest correction in the U.S. Bond market in the past 25 years. ³

It’s not just U.S. bonds either. The Global Aggregate Index has declined 11%, falling to its lowest point since the 2008 financial crisis. ³

Why are bonds declining?

All financial markets are facing headwinds right now, but the bond market is facing multiple issues that are creating a perfect storm for income investors. The first issue is the ongoing war in Ukraine. Instability is always a risk for financial markets, and this is no exception. The uncertainty surrounding the outcome and Ukraine and the risk that the conflict could expand have investors rattled.

The other issue is the double-edged sword that is inflation and interest rates. In March, the Consumer Price Index (CPI) was up 8.5% from 12 months earlier. That’s the fastest annual rise in prices since 1981. In fact, the CPI has set new 40-year highs for five consecutive months. ⁴

The sharp rise in inflation has led to a similar rapid rise in interest rates. The Federal Reserve raises interest rates to fight inflation. Higher interest rates makes it more difficult to borrow money, which slows the economy and reduces demand for goods and services.

Fed Chairman Jerome Powell has already indicated a 50-point increase in interest rates at the May meeting. Other Fed officials have suggested that there will be further hikes. The CME Fedwatch website predicts rates to hit 2-2.25% by the end of the year, with an 87% probability. ⁵

The prospect of increased interest rates has affected the stock market, but it’s also had a significant impact on the bond market. When interest rates rise, bond prices tend to fall. That means the bond market will continue challenges if the Fed continues to raise interest rates.

What can be used as an alternative to bonds?

Although not true for everyone, some people use bonds for income and as an asset to reduce volatility in their portfolio. Many investors shift more assets to bonds as they approach retirement to minimize their exposure to stock market risk.

In the current environment, though, bonds may not perform as they have in the past. In the first quarter, major bond indexes performed worse than stock indexes. [JR1] 2

Potential Bond Alternative

Fortunately, there are alternatives available. One potential alternative is a fixed indexed annuity (FIA), which could be used in a portfolio to replicate the income from bonds and also protect the portfolio from volatility in the stock and bond markets.

A fixed indexed annuity is a product offered by insurance companies. They are often tax-deferred, meaning you don’t pay taxes on gains as long as the assets stay inside the annuity.

FIAs also provide risk protection in the sense that your value never declines due to market performance. You can potentially earn interest each year based on how market indexes perform, but you never lose any of your premium if the markets decline.

An easy way to think about a fixed indexed annuity is:

F ixed floor value that protects your principal

I nterest based on the performance of a market index

A nnuity that grows tax-deferred, unlike bonds

Most FIAs also offer optional riders that include income benefits which provide predictable lifelong income through retirement. Those benefits vary by product, but they can be used to replicate the income-driven nature of bonds.

A fixed indexed annuity isn’t right for everyone, but it can be a useful tool for those looking for predictable income and protection from market risk.

Now may be the right time to review your strategy and explore alternatives to bond investments. Let’s connect today and start the conversation.

1https://www.google.com/finance/

2 https://www.wsj.com/articles/bond-market-suffers-worst-quarter-in-decades-11648737087

3 https://finbold.com/u-s-bond-market-wipes-out-over-2-trillion-marking-the-largest-loss-in-recent-history/

4 https://www.usatoday.com/story/money/2022/04/12/inflation-rate-cpi-highest-40-years-prices/7284054001/

5 https://www.barrons.com/articles/interest-rate-hikes-51650675267

Licensed Insurance Professional. Respond and learn how insurance and annuities can positively impact your retirement. This material has been provided by a licensed insurance professional for informational and educational purposes only and is not endorsed or affiliated with the Social Security Administration or any government agency. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.

Annuities are insurance products backed by the claims-paying ability of the issuing company; they are not FDIC insured; are not obligations or deposits of, and are not guaranteed or underwritten by any bank, savings and loan or credit union or its affiliates; are unrelated to and not a condition of the provision or term of any banking service or activity.

[JR1] Cite source

Advisory services offered through Change Path, LLC a Registered Investment Adviser. Change Path, LLC and Oliver Asset Management are unaffiliated entities. Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional tax advice for applicability to your personal situation.

Ed Slott Master Elite IRA Toolbox

How the Russia-Ukraine Crisis Is Impacting Markets and Retirement Portfolios

Fri, 08 Apr 2022 17:09:21 GMT

Immediately following the news of Russia’s decision to invade Ukraine, the Dow saw a 465-point slide and an 800-point drop in futures. That selloff also came on the heels of investor concerns about the Federal Reserve raising interest rates and inflation costs. Yet, the stock market rebounded shortly after.

Suffice it to say, investors – especially those nearing retirement – may be wondering how this conflict and aftermath of market volatility will impact their portfolios. While the future is unpredictable, here are some points to consider for those retirement portfolios.

Potential Effects of the Russia-Ukraine Crisis on the Economy

The Russia-Ukraine Crisis is the largest European land conflict since World War II. Naturally, its economic and global market effects will be noticeable in both the short and long-term. The ripples from some of those effects may not even be traceable for years to come.

Measuring the Economic Output of Ukraine and Russia

Assessing the possible fallout from this conflict might begin with examining Russia and Ukraine's exports and products to the global economy. The main products of both countries include petroleum-based goods, oil, natural gas, and other energy resources. The European Union reportedly receives about 41% of its gas from Russia.

Both countries are major producers of basic food staples such as grains, wheat, corn, and barley. Despite these countries’ production of essential commodities, their total output only accounts for approximately 3% of the world’s gross domestic product. The conflict may cause the supply of these commodities to increase, leading to increases in pricing that will most directly impact lower-income households.

Will Any Market Sectors Benefit from the Russian and Ukrainian Conflict?

Global conflicts and crises always present market losers and winners over time. For example, the video chat platform, Zoom , saw its stock skyrocket after the start of the Coronavirus pandemic in 2020, but has since cooled as the pandemic has slowed down.

The same logic will apply to the Russia-Ukraine conflict. One possibility will be in the cybersecurity sector as cyberwarfare threats have increased since Russia’s invasion. Companies specializing in cybersecurity products or services may see increased attention to their stock’s price in the market.

Protecting Retirement Portfolios During Times of Crisis and Uncertainty

Investors of all ages, income levels, and backgrounds will be interested in the Russia-Ukraine conflict’s impact on their portfolios. However, those in or nearing retirement may be more concerned over the current market volatility given their shorter investment timeline and greater reliance on their portfolio to supplement income with social security or pensions. Investors in that group may consider several key fundamentals before making any financial or investment decisions.

Assess Cash Reserves and Expenses

Feelings of stress or anxiety over market reactions to significant political and economic events may be a signal of an investor’s current finances. Reflect on whether cash reserves are at a sufficient level to withstand short-term market volatility and explore other financial pressures (i.e., expenses) that may be contributing to feelings of unease.

Avoid Knee-Jerk Responses to Buy or Sell Certain Investments

A decrease in the value of a stock or other investment position is not a loss until locked in after a sale. Avoid the temptation to sell off investments based on fears that their value will continue to decline. Likewise, avoid investing in stocks or markets experiencing significant gains because of the current state of affairs. As with all investments, it’s important to remember the big picture and see the forest through the trees.

Carefully Consider Market Opportunities

Market volatility always breeds opportunities, and savvy investors may find opportunities to plant seeds for long-term gains amidst the doubt and uncertainty. Contemplate the rebalancing of a retirement portfolio by selling off successful investments and reinvesting some of the gains into future opportunities or wealth-preservation vehicles.

In Short: Act Without Panicking. The Russian-Ukrainian Crisis will likely leave its mark on the global economy and markets in ways that investors and institutions will not be able to foresee fully. The best course of action during times of uncertainty is to stay informed, avoid panicking, and take decisive action based on reliable information.

Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary, or investment advice.

Get access to Oliver Wealth Management's Exclusive Ed Slott Master Elite IRA Toolbox below for tools, strategies and resources to help you develop your IRA and retirement tax minimization strategy.

Advisory services offered through Change Path, LLC a Registered Investment Adviser. Change Path, LLC and Oliver Asset Management are unaffiliated entities. Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional tax advice for applicability to your personal situation.

Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement.

1. https://www.usnews.com/news/economy/articles/2022-02-24/stocks-crater-following-russias-invasion-of-ukraine-dow-futures-off-800-points

2. https://time.com/6152988/ukraine-invasion-markets-rebound/

3. https://www.cnbc.com/2022/02/24/why-europe-depends-on-russia-for-natural-gas.html

4. https://asmith.ucdavis.edu/news/russia-ukraine#:~:text=Russia%20produces%2011%25%20of%20the,accounting%20for%2014%25%20of%20exports .

5. https://www.marketwatch.com/story/zoom-says-a-growth-slowdown-is-coming-and-the-stock-is-plunging-11646083669

6. https://www.marketwatch.com/story/cybersecurity-stocks-gain-on-fears-of-a-significant-ramp-up-of-cyberwarfare-related-to-russian-invasion-of-ukraine-11646082222

7. https://www.marketwatch.com/story/cybersecurity-stocks-gain-on-fears-of-a-significant-ramp-up-of-cyberwarfare-related-to-russian-invasion-of-ukraine-11646082222

8. https://www.investopedia.com/articles/active-trading/121014/protect-retirement-money-market-volatility.asp

Ed Slott Master Elite IRA Toolbox

Using a Tax Refund to Fund an IRA in 5 Easy Steps

Fri, 08 Apr 2022 16:51:04 GMT

What does the basic process entail? An income tax refund can be directly deposited to an

IRA up to the annual contribution limit. The contribution limit is $6,000 ($7,000 for individuals age

50 or older) for 2020 and 2021. It can also be split among multiple accounts.

1. It is tax time! Prepare your tax return for the year.

2. Determine the refund amount. Once you know how big your refund will be, decide

how much, if any, you would like to contribute to your IRA or Roth IRA up to the

maximum annual contribution allowed.

3. One, two, three. A refund going to only one account can be done directly on IRS

Form 1040. Prepare IRS Form 8888 to direct the refund to up to three accounts.

4. Watch out! If you use Form 8888, pay attention to the five cautions provided by the

IRS on the instructions to ensure that you do not fall into any of those traps. The form

can be found on the IRS’ website (www.irs.gov).

5. Follow-up, follow-up, follow-up. If the IRA deposit is meant to be for the prior year,

make sure the institution will code it that way, and that it is received in time. If the

refund amount is adjusted for math errors or tax adjustments, check which accounts

on the form are affected. You may need to do an amended return if the IRA deposit is

adjusted. If your refund is offset (e.g., because you owe past-due taxes), also check

which accounts are affected. Again, you may need to do an amended return. If the

funds go into the wrong account, deal with the institution to get the funds credited to the correct account.

Get access to Oliver Wealth Management's Exclusive Ed Slott Master Elite IRA Toolbox below for tools, strategies and resources to help you develop your IRA and retirement tax minimization strategy.

Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement.

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Choosing the Right Financial Advisor in 5 Easy Steps

Wed, 09 Mar 2022 19:41:40 GMT

Why do you need a financial advisor?

5. Don’t be afraid to get a second opinion . Your IRA, 401(k) or other retirement account may be the largest single asset you own. If you’re not sure about the advice you’ve been given, don’t be afraid to get a second opinion. If an advisor tells you that there’s no need for one, they’re probably not confident in the information and recommendations they provided to you in the first place.

Get access to Oliver Wealth Management's Exclusive Ed Slott Master Elite IRA Toolbox below for tools, strategies and resources to help you develop your IRA and retirement tax minimization strategy.

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What You Need to Know About Bitcoin and Cryptocurrency

Mon, 07 Mar 2022 20:11:13 GMT

Over the last couple of years, cryptocurrencies have become more well known due to the significant increases and swings in the price of popular coins like Bitcoin and Ethereum. Despite reaching an all-time high price last year, only about 16% of Americans have reported investing or trading cryptocurrency.

What Are Cryptocurrencies?

Cryptocurrencies are digital assets secured on a blockchain, which is a type of ledger that records transactions using concepts of cryptography and game theory. Some of these concepts include:

Private and public-key pairing
Hashing functions
Elliptical curve encryption

The first cryptocurrency was Bitcoin, a creation of the anonymous Satoshi Nakamoto that started in 2008. However, in the nearly 14 years since Bitcoin’s inception, many other cryptocurrencies now exist, each with its unique value propositions and communities.

How Do You Buy Bitcoin and Other Cryptocurrencies?

If not covered by a company plan but the spouse is, the phase-out range for 2021 is $198,000 - $208,000 and for 2022 is $204,000 - $214,000. If filing married-separate, the phase-out range is $0 - $10,000.

Click here to view the chart.

What Makes Cryptocurrencies Valuable?

The value propositions of cryptocurrency may vary from coin to coin, which is why it’s important to thoroughly research the fundamentals of a crypto project before investing. However, some of the general attributes of crypto that may be of value include:

Decentralization
Transaction Privacy
Store of value (i.e., digital gold)
Scarcity
Utility through DeFi , NFTs , and other use cases in the metaverse.

Where Do You Keep or Store Your Cryptocurrencies?

Once bought, some users keep their cryptocurrency in the account on the exchange they used to purchase them. However, others may prefer to hold their crypto on any number of crypto wallets .

Cryptocurrency wallets are generally distinguished as a hot or cold wallet. Hot wallets refer to software programs stored online through a computer or phone. In contrast, a cold wallet is held in a USB-connected device capable of offline storage.

What Are the Risks of Owning Cryptocurrency?

The risks of cryptocurrency are threefold. The first is the potential for losing crypto by forgetting a spending password or wallet seed-phrase. Risk also exists through the potential for bad actors to hack and steal cryptocurrency either through manipulation of software or by obtaining an individual’s crypto wallet passwords.

Other Ways to Invest in Cryptocurrency

For people not yet ready to purchase their own cryptocurrency, other options still exist for investors to have some exposure to the cryptocurrency industry in their portfolio. These include:

Investing in companies in the cryptocurrency space
Indirectly obtaining crypto exposure through investment in companies that hold cryptocurrencies on their balance sheets
Investing in an exchange-traded fund (ETF) that holds different cryptocurrencies and related contract assets.

What Is a Reasonable Amount of Crypto for Your Portfolio?

No single correct approach exists when it comes to determining the amount of cryptocurrency an investor should have in their portfolio. Rather, the chosen amount will always depend on factors specific to the investor and their financial goals.

Relevant to the discussion might be an investor’s net worth, current income and expenses, retirement savings, and overall risk tolerance. Generally, some experts may recommend allocating only a tiny percentage (e.g., 2-5%) of an investor’s overall portfolio, if any, to cryptocurrencies.

Is Crypto Right for an Investor’s Portfolio?

The cryptocurrency market is still a young industry, and its technologies and investment opportunities are continually evolving and changing. As a result, cryptocurrency investments can be somewhat speculative and subject to short-term volatility.

As always, investors should perform their own due diligence before buying a particular cryptocurrency and only invest amounts they won’t be afraid to lose.

Sources

1. https://www.pewresearch.org/fact-tank/2021/11/11/16-of-americans-say-they-have-ever-invested-in-traded-or-used-cryptocurrency/

2. https://coinmarketcap.com/

3. https://www.investopedia.com/decentralized-finance-defi-5113835

4. https://www.forbes.com/advisor/investing/nft-non-fungible-token/

5. https://time.com/nextadvisor/investing/cryptocurrency/hot-wallet-vs-cold-wallet/

6. https://money.usnews.com/investing/cryptocurrency/slideshows/best-cryptocurrency-etfs-to-buy?slide=6

7. https://www.bloomberg.com/opinion/articles/2022-02-18/personal-finance-how-much-crypto-should-be-in-your-investment-portfolio

Get access to Oliver Wealth Management's Exclusive Ed Slott Master Elite IRA Toolbox below for tools, strategies and resources to help you develop your IRA and retirement tax minimization strategy.

Advisory services offered through Change Path, LLC a Registered Investment Adviser. Change Path, LLC and Oliver Asset Management are unaffiliated entities. Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional tax advice for applicability to your personal situation.

Licensed Insurance Professional. Respond and learn how financial products, including life insurance and annuities can be used in various planning strategies for retirement.

Ed Slott Master Elite IRA Toolbox

Recharacterizing an IRA/Roth Contribution in 5 Easy Steps

Thu, 03 Feb 2022 21:26:23 GMT

What is a recharacterization?

In the simplest of terms, a recharacterization is an “undo.” It treats an IRA contribution as if it were made as a Roth contribution and vice versa.

1. Meet the deadline. A recharacterization must be completed by October 15 of the

year after the year for which the contribution was made. That means that a January 10

contribution for the prior year must be recharacterized by October 15 of the current year,

but a January 10 contribution made for the current year can be recharacterized through

October 15 of the following year. If you miss the October 15 deadline, the only way to get an

extension is to go for a private letter ruling from the IRS.

2. Make a trustee-to-trustee transfer back to the receiving account. A recharacterization must be made via a trustee-to-trustee transfer. It cannot be done using