
Retirement Planning Articles
2025 Retirement Plan Cost of Living Adjustments
Posted by Robert Ingrasci on November 12, 2024
Lumsden McCormick presents a highlight summary of the significant cost-of-living adjustments (COLA) effective for 2025.
How Self-Employed Individuals Can Build a Robust Retirement Nest Egg with a Solo 401(k)
Posted by Alexander Intihar on October 28, 2024
A solo 401(k) is an excellent retirement savings option for self-employed individuals and small business owners with no employees, offering high contribution limits and tax savings. With flexible contributions and loan options, this plan allows for substantial, deductible retirement investments. However, solo 401(k)s require more administrative work, making them best suited for business owners with significant income and a commitment to maximizing retirement savings.
Employers: Social Security Wage Base Increase in 2025
Posted by on October 21, 2024
In 2025, the Social Security wage base will rise to $176,100, increasing payroll tax obligations for employers with high earners. Employers and self-employed individuals will continue to pay FICA taxes at the same rates, with Social Security tax capped at the new wage base and no cap for Medicare. Businesses should plan for these changes and consult for compliance guidance.
The Estate Planning Potential of Self-Directed IRAs
Posted by Robert Ingrasci on July 04, 2024
Self-directed IRAs can enhance traditional and Roth IRAs' benefits by allowing investments in alternative assets, potentially offering higher returns. However, they come with significant risks and tax implications that require careful management. Individuals considering self-directed IRAs should evaluate these factors to optimize their estate planning strategies.
Retirement Plan Options for Small Businesses
Posted by Thomas Burns on April 13, 2023
If you’re a small business owner, you may be reluctant to set up a retirement plan because of the administrative burdens. Here are two options to consider that have far fewer requirements than traditional qualified retirement plans.
Secure 2.0 Act of 2022 Introduces Key Changes for Workplace Retirement Plans
Posted by Brian Kern on February 14, 2023
The Consolidated Appropriations Act, 2023 that was signed into law on December 29, 2022 by President Joe Biden includes the SECURE 2.0 Act of 2022, which introduces over 90 changes to the federal rules governing workplace retirement plans. This landmark legislation builds on the original SECURE Act that was enacted on December 19, 2019, and aims to expand coverage and increase retirement savings while simplifying and clarifying retirement plan rules.
Tax Deferred Compounding of a 401(k) Plan
Posted by Isabella Newman on January 04, 2023
Everyone knows the benefits of a 401(k) plan. You can build substantial wealth with maximizing your contributions and diversifying between traditional and Roth 401(k) pans.
There’s Still Time to Make an IRA Contribution
Posted by Isabella Newman on March 03, 2022
To help ensure financial security in retirement, saving now on a tax-favored basis is a smart move. And if you qualify, you still have time to contribute to an IRA or SEP and save on your 2021 tax return.
When Should You Take Social Security Benefits?
Posted by Jeffrey Budzinski on March 29, 2021
The age that retirees may start receiving 100% of their Social Security benefit ranges from 65 for people born in 1937 or earlier to 67 for people born in 1960 or later. However, you can also opt to receive reduced monthly benefits as early as age 62 — or you can choose to receive a higher monthly benefit by deferring receipt up until age 70.
How to Avoid Penalties on Early Retirement Account Withdrawals
Posted by D’Marie Kleeman on August 10, 2020
The COVID-19 pandemic has resulted in many people borrowing from their companies' qualified retirement plans. If economic fallout from the pandemic causes you to default on one of these loans, it will cause negative tax and retirement-saving consequences.