From an August 21 online post on CNBC.com
Angela Versch worked as a day-care teacher for Bon Secours Health System in Richmond, Virginia, for 17 years. She retired in 2010, but after less than a year, she was back on the job as a substitute teacher.
Versch, now 76, was bored with retirement and wanted to get out of the house. She was able to schedule her work days around visits with her four grandchildren and earn more to supplement her retirement savings.
"My job gives me extra money for the little things, like going out with my grandkids or paying someone to do work around the house," said Versch, who wants to keep her job until she turns 80. "More older people can put a lot more into working. I've been working since I was 17."
After your death, the disposition of retirement accounts, life insurance policies, annuities, and accounts at financial institutions are governed by beneficiary designations. If those designations are outdated, unspecific, or wrong, your assets may not be distributed the way you would like. Here are items to consider.
Be specific and stay current. When you name a beneficiary, your assets can pass directly to that person or entity without going through a legal process called probate. Update the designations for life events such as divorce, remarriage, births, deaths, job changes, and retirement account conversions.
Think about unexpected outcomes. Be alert for the effect of taxes and unintended consequences.
The Internal Revenue Service is seeing a big increase this summer in automated phone calls from con artists pretending to work for the IRS calling innocent taxpayers demanding overdue taxes.
The criminals leave urgent callback requests on voice mail telling taxpayers to call back to settle their “tax bill.” The bogus calls generally purport to be the last warning before the IRS takes legal action against unsuspecting taxpayers. When a victim calls back, the con artists threaten to arrest or deport the taxpayer or revoke their driver’s license if they don’t agree to pay up.
When you pay for clothes in a store or dinner at a restaurant, you might use either a credit card or a debit card. In your mind, they may be the same. But there are differences to be aware of.
For example, with a credit card, the money is not immediately withdrawn from your bank account. As long as you pay back the issuer within the stated period, you won't be charged interest on the money you owe. But you don't want to make a late payment – interest can build up quickly on credit cards.
A July 22, 2016, Accounting Today online post provides great tips on tax advantages available to families dealing with issues like summer camp and tuition payments.
The summer has started and summer camp bills have been paid. Summer camp is a great way to keep our children busy and looked after while we are working. But it comes at a steep price.
Summer camp costs are, on average, about $300 per week. And for our children who are graduating from high school, we are looking at college tuition fees coming due this August ranging from an average of $9,139 (for state residents at public colleges) to $31,231 (private college). There are some tax advantaged ways, though, to help pay these expenses.
When you change jobs and abandon vested amounts in your 401(k), your former employer has to follow IRS rules and plan provisions for dealing with your account balance. Pursuant to these guidelines, the 401(k) plan may have a "force-out" provision. That means when your vested balance is less than $5,000, you can be forced to take your money out of the plan.
CPA Compass Blog
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