Spousal IRA's

 With tax time at hand, we’ve been talking about using IRA’s to drop taxable income so I thought I’d explain what is a spousal IRA, and when is it a good idea? As you probably know, you can’t really combine retirement accounts as a couple. For example, I can’t throw my 401(k) into my partner’s 401(k) to create one mega 401(k). But if my spouse loses their source of income, I *can* open a spousal IRA—either traditional or Roth—and contribute to the account in their name so they’re covered in retirement. Spousal IRAs are the exception to the rule that an individual must earn money to contribute to a retirement account. Say your spouse is someone without a traditional income stream—a stay-at-home parent, for example. You can use a spousal IRA. Plus, even though the IRA holder may not contribute to the account, they are the sole account owner. That means they make all the account management decisions, including choosing beneficiaries. This is not, I repeat, not a joint IRA. A few caveats: To take advantage of spousal IRAs, couples must file taxes jointly. There’s also a contribution limit of $6,000 per individual for 2022 and $6,500 for 2023. You can contribute $1,000 more if you're 50 or older.

If you have questions go to yoursafemoneyshow.com or call 320-679-5183.

Tax breaks for people over 50

 

Highlights for February 25th Your Safe Money Show

 Coming up on this Saturday's (February 25th) Your Safe Money Show. Todd will talk about tax breaks for people over 50. How to take required minimum distributions. And what questions should you ask your aging parents about their finances? Listen at 8 a.m. at Nice 95.5FM KBEK. The live stream is at kbek.com. You can hear recent shows at yoursafemoneyshow.com.

How does Social Security work?

 How Does Social Security Work?

Most Americans contribute 6.2% of their earnings to the Social Security system, and employers pay a matching amount. Those who are self-employed pay 12.4% of their income into Social Security. Workers who have sufficiently paid into the system can collect retirement benefits beginning at age 62 or older. You may also be eligible to collect benefits if you become disabled, and your family members might qualify for survivor's payments after you pass away.

If you have questions ask for "Your Guide to Social Security" by calling 320-679-5183 or at yoursafemoneyshow.com.

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Highlights for February 18th Your Safe Money Show

 Coming up on our Saturday February 18th edition of Your Safe Money Show. Todd will explain what the debt to income ratio is. He'll answer the question how much life insurance do you need? And what type of policy best fits your situation. He will also go over the five groups of people that will never receive Social Security Benefits. Listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at yoursafemoneyshow.com.

Do you have missing assets?

 We talked about this on last weeks Your Safe Money Show. Missing Money dot Com is the only website endorsed by States and Provinces working together to reunite you with your lost funds. https://www.missingmoney.com/

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February 11th Your Safe Money Show highlights

 Coming up on Saturday's (February 11th) Your Safe Money Show. Todd will have ways to plan for a happier retirement. Also he'll be sharing insight from cybersecurity experts about how to protect yourself from tax fraud and scams. Timely information for sure. And States have $70 billion dollars in unclaimed assets. He’ll have how to check to see if any of that money is yours. Listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Go to yoursafemoneyshow.com to hear recent shows.

Tax related Identity Fraud

 We hear in the news now how important it is to file your taxes sooner rather than later for a number of reasons. The main reason to file asap is because of tax-related identity theft which happens when someone uses your Social Security number to file a return and claim a fraudulent refund. You may find out through a rejected tax return or IRS letter, among other warning signs. Just be aware that experts say it’s critical to have all your tax forms before filing your return. Companies send a copy of these forms to you and the IRS every year, making it easy for the agency to flag returns with missing information. Typically, skipping these details triggers an automated notice from the IRS, which may delay processing or take time to resolve. Most tax forms arrive by late January to mid-February, but others may be later. Once you know you have all the documents you need, you can file. If your tax situation hasn’t changed from last year, you can look at what was used for last year's taxes to know if you have all the information needed for this year’s taxes.

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February 4th highlights for Your Safe Money Show

 February 4th topics for Your Safe Money Show. Tax time is under way and Todd will have how to make a last minute IRA contribution. We’ve been hearing about the debt ceiling crisis. What does it all mean and how can we prepare? And he’ll have questions to ask yourself during retirement planning. Listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at yoursafemoneyshow.com.

Unclaimed pensions information

 To pinpoint an unclaimed pension from an old job, check out Pbgc.gov/search-unclaimed-pensions, a website run by the Pension Benefit Guaranty Corporation, a U.S. government agency. PenChecks Trust, which offers retirement plan distributions, also has a registry database of unclaimed retirement benefits, where both employers and employees may pinpoint unclaimed retirement funds.

 Pbgc.gov/search-unclaimed-pensions