Semi-retired and looking to buy a new house. The big question is whether or not to take out a mortgage or pay cash? That’s the gist of our call this week as we chat with Ryan from Seattle.
The rest of hour one was trying to clean out the inbox. Haha, yeah right. We’ve got thousands of emails, and all I can say folks is that we’re doing the best we can.
What could be more basic than preparing your taxes? After a tumultuous 2020, tax season is officially open, a few weeks later than years in the past. The deadline to file and pay any tax owed reverts to April 15th, after last year’s COVID-19 related extension.
By now, you should have received most of your tax preparation documents (W-2s, 1099s, as well as bank, investment, mutual fund and mortgage company documents).
If you didn’t learn the lesson of electronic filing last year, this is the year to dump the paper. After all, those who had electronic files with the IRS got those stimulus checks faster than those who had to wait weeks and sometimes months for their money.
Additionally, be sure to choose direct deposit, which is “the safest, most accurate and fastest way to get a refund,” according to the IRS.
Because of all the various changes that went into effect last year as the pandemic unfolded, this tax season could be a tricky one.
To help us break it down, we're joined by the one and only Ed Slott, the ultimate tax guru and founder of IRA Help.
Have a money question? Email me here.
"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.
And that’s a wrap on what was by far the most bizarre first half of a year that I’ve ever experienced. And unless you’re way up there in age, and were around in 1940, I’m guessing the same applies to you!
In keeping with the Groundhog Day pattern, we’re beginning the second half the same way we ended the first half, answering your coronavirus related money questions.
Happy Independence Day weekend!
Yes, we're officially in the summer months, and for millions of Americans, thanks to the coronavirus, the early summer weeks will include preparing and paying taxes.
Because of the pandemic’s timing and impact, the IRS delayed the tax-filing and payment deadlines from April 15th to July 15th. The agency also moved back Q2 quarterly estimates, which would have been due on June 15th, to July 15th.
To help us break down all the ins and outs of this "new" tax season, we're joined in hour two by Ed Slott, the ultimate tax guru and founder of IRA Help.
If you’ve been impacted by the pandemic, here’s a bunch of helpful links:
NYT F.A.Q. on Coronavirus Bill
Coronavirus State Unemployment Benefits Filing Info
Coronavirus Student Loan Information
Coronavirus Guide for Small Businesses
Coronavirus NYT Small Business Program Q&A
Have a money question? Email me here.
"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.
Ed Slott CPA is a nationally recognized IRA expert, television personality and best-selling author who has dedicated his life to educating Americans on saving for retirement and the intricacies of IRAs. He was named “The Best Source for IRA Advice” by The Wall Street Journal and is the author of numerous best-selling books. His web site www.IRAHelp.com. He started our conversation with an overview of what has changed for this year's tax filing season (not too much) and then explained why well-prepared taxpayers should not be afraid of an audit. (NOTE: Ed says that the key to the entire tax preparation process is to keep flawless records and documentation throughout the year!)
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Ed also focused on the need for retirees to shift gears in retirement. While there may be some lucrative opportunities, there are also challenges/minefields, like those thorny stealth taxes, which can trip us up.
The old favorites include the whopping 50 percent penalty for not taking your required minimum distribution (RMD) and not making estimated tax payments, but last year's change about IRA rollovers is also causing a new headache among some retirees.
As much as everyone complains about paying taxes, Ed says that tax rates are still the lowest they have been in years. That means that now could be a good time to move funds from tax-deferred vehicles, like 401 (k)s and IRAs into tax free Roth IRAs. Ed also noted that the very best retirement strategy is to work as long as you can. Extra income can prevent you from dipping into your nest egg; with earned income, you can continue to make Roth and spousal Roth IRA contributions (though once you turn 70 1/2, you can NOT make traditional IRA contributions); you may be able to delay your RMDs from your company-sponsored retirement plan; and most importantly, working longer will help you combat the reality of longevity!
Thanks to everyone who participated this week, especially Mark, the Best Producer in the World and the worst LinkedIn User. Here's how to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
Ed Slott, CPA is a nationally recognized IRA expert, television personality and best-selling author who has dedicated his life to educating Americans on saving for retirement and the intricacies of IRAs. He was named “The Best Source for IRA Advice” by The Wall Street Journal and is the author of numerous best-selling books, which is why we are so happy he joined the show to help you make smart, year-end money moves.
- Download the podcast on iTunes
- Download the podcast on feedburner
- Download this week's show (MP3)
Ed covered a lot of ground, including a great rule of thumb about filing for Social Security: "The longer you wait, the more you get!" Here's a quick list of things to remember to maximize the remaining days of 2015:
- Make your 2015 Roth IRA conversion and consider a back door conversion, if you earn too much money to qualify for a contribution
- Check the taxes on stock or mutual fund sales; use losses to offset gains
- Max out your retirement accounts (yes, there's still time to get to $18,000 or $24,000 if you are over age 50)
- Take Required Minimum Distributions: RMDs must start in the year you turn 70 1/2 or the year. Fail to do so and the amount you should have withdrawn will be taxed at 50 percent!
- Donate your IRA distributions to charity: Although this is still in limbo, Ed recommends that you take advantage of it and assume that Congress will once again make it part of an extender package
- Check / Update Beneficiary Forms
- Bunch your deductions and if you are self-employed, project your 2016 income. If it will be higher than 2015, consider deferring income and expenses until next year, when you are in a higher tax bracket
- Be aware of stealth taxes
Check out Ed's web site www.IRAHelp.com for more information!
Thanks to everyone who participated this week, especially Mark, the Best Producer in the World. Here's how to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
Retirement guru Ed Slott returns to the program to offer great advice during the hectic tax prep season: ABC or Always Be Contributing (to retirement!) While he favors a Roth over a traditional IRA, he just wants you to put yourself first in order to navigate this YOYO (You're On Your Own) environment.
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- Download this week's show (MP3)
Ed also provided analysis of President Obama's budget and its implications for owners of Roth IRA accounts; potential changes to contribution rules that could allow some taxpayers to make after-tax contributions (aka the "Mega-Backdoor-Roth"); and why we all need to be prepared for stealth tax increases in the future.
For more great information, check out Ed's website: IRAHelp.com.
Chuck from MD and his wife are planning to retire in a few years and wanted a strategy for downsizing; Marie asked about taking her Required Minimum Distribution -- here's the FINRA RMD calculator that I mentioned; and Charles asked whether he should sell a large position in a single stock.
"A Proud Grandmother" inquired about the best graduation gift and Remy is considering the best way to help out parents' in need.
Happy Valentine's Day! To celebrate, here a fun CBS This Morning segment: How to Talk to your Spouse about Money!
Thanks to everyone who participated and to Mark, the BEST producer in the world. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
What a treat to have retirement plan expert Ed Slott CPA join the show to help make smart year-end financial decisions! Ed is a nationally recognized IRA expert, television personality and best-selling author who has dedicated his life to educating Americans on saving for retirement and the intricacies of IRAs.
- Download the podcast on iTunes
- Download the podcast on feedburner
- Download this week's show (MP3)
Among his many pearls of wisdom, delivered with his awesome Long island accent, Ed reminded us to do the following before the clock strikes midnight on December 31, 2014:
- Make your 2014 Roth IRA conversion
- Be aware of new IRA rollover rules
- Max out your retirement accounts
- Take Required Minimum Distributions
- Check / Update Beneficiary Forms
- Be aware of stealth taxes
- Consider donating your IRA distributions to charity
- Use Your Gifting Limits
In the first hour of the show, we had a terrific call from Mike in Texas, Sharon in CT and Mike in Maryland, all of whom needed guidance on financial advisors.
Thanks to everyone who participated and to Mark, the BEST producer in the world. Check out Mark's first-producing credit for this CBS Evening News segment that aired recently. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio