plan for your kids' college tuition

Do you have kids? Do you have plans for your kids to go to college one day? Have you looked at how much college is going to cost you for just one kid? College is a big investment, but it is a good one. If you begin planning for this huge expense when your kids are young, you won't take much of a hit when the day comes that your teen packs his or her bags and heads off to start a new life at school. This blog will provide you with several ideas and tips that can help you find ways to plan for your kids' college tuition.

Understanding The Common IRA Rollover Mistakes So You Can Avoid Paying Income Taxes On The Funds


Planning to be financially stable after retiring from work can take considerable work and information. You may have a group retirement fund set up through your employer or have individual retirement accounts (IRA) set up with a financial planner that allow you to make regular deposits. These deposits are taken directly from your paycheck and are figured before you are taxed on your income. Moving the money around between these accounts to receive a better interest rate can be done, but new laws are in place that limit these IRA "rollovers." To avoid paying taxes on your retirement funds, it is important that you understand the laws.

One Rollover Per Year

Until 2015, you could move funds around between your group retirement fund and different IRAs you have without having to pay any penalties or tax. However, you had to replace the money in a  different account within 60 days of it being removed, and each account could only have one transaction per year. Unfortunately, this was abused. People would take money out of the account and use it for living expenses or something special and then replace it at a later date. The IRS has now made the regulation that you may only move money around between your retirement funds once a year. For example, under the old law, you could move money from account A to account B once a year, but you could also move money from account C to Account D that same year. Now, you could not make the transaction between accounts C and D if you had already completed one between A and B.

Distributions and Your Age

If you need to take money out of your IRA before you turn 59 years old, there will be a penalty and taxes on the amount. Once you are 59½ years old, you may take out money without penalties, but the amount will be considered income and be taxed. When you reach 70½ years old, you will be required to take money out of the account, and it will be taxed as your income.

Financial planning for your retirement is important and confusing. If your employer offers the services of a financial advisor, take advantage of this and at least get things started. You do not want to reach retirement age and have to continue working because you cannot afford not to. You worked hard all your life, you should be able to enjoy your golden years without having to worry about money.  


6 October 2015