DO YOU NEED TO TAKE AN RMD? APRIL 1 MIGHT BE AN IMPORTANT DATE FOR YOU

April 1 is the last day you can take your required minimum distribution (RMD) for 2017 from your traditional IRAs. If you reached age 70½ last year, this is a big deal.

PUTTING YOUR TAX REFUND INTO A RETIREMENT ACCOUNT?

Considering depositing your tax refund into your retirement account? Make sure no snafus happen along the way.

AVOID HIGH RMD PENALTIES

Required minimum distribution (RMD) rules are pretty strict. If you don't want to face a hefty fine, you must withdraw a certain amount of money every year from tax-deferred retirement plans like 401(k)s  and traditional IRAs after you reach age 70½.  The withdrawals you make are then taxed as ordinary income. Not following these rules can lead to a penalty equal to 50% of the amount that should have been withdrawn, plus regular tax.

EMPLOYER COMPANY STOCK: RISKY OR WORTH IT?

Do you have too much of your employer's company stock in your 401(k) or other retirement plan? It's time to find out if you've made a smart or risky move.

IS YOUR HSA A RETIREMENT TOOL? THE GOOD, THE BAD, AND THE UGLY

Health Savings Accounts can be a source of retirement funds when properly positioned with other retirement fund options, but it's important to know their advantages and disadvantages.

NEW JOB? FOUR CHOICES FOR YOUR EXISTING 401(K)

When you get a job with a new company, you have a decision to make. What are you going to do with the retirement savings you have built in your 401(k) plan? You have four options.

HOW MUCH DO YOU NEED TO RETIRE?

The statistics are staggering. The majority of Americans do not save for retirement or have not saved enough for retirement. Make sure you're taking these three steps to be financially prepared for your retirement.

COLLEGE OR RETIREMENT – WHICH SHOULD YOU FUND FIRST?

Saving for your children's education or your own retirement – how do you decide which is more important? A typical retirement will generally last longer and cost more than your child's education. If you cannot adequately fund both, maximize your retirement savings first. There are far more options for your child to finance his or her college education than there are for you to fund your retirement.

TAX PLANNING 2017: INFLATION ADJUSTED TAX NUMBERS

Each year, certain tax figures are adjusted for inflation. While most figures are unchanged versus 2016, there is more than a 7% increase to the maximum earnings subject to social security tax. Take note of these numbers for use in your 2017 planning.

• The maximum earnings subject to social security tax in 2017 is $127,200. The earnings limit for those under full retirement age increases to $16,920 for 2017.
• The "nanny tax" threshold remains $2,000 in 2017. If you pay household employees $2,000 or more during the year, you're generally responsible for payroll taxes.
• The "kiddie tax" threshold remains $2,100 for 2017. If you have a child under the age of 19 (under age 24 for full-time students) who has more than $2,100 of unearned income, such as dividends and interest income, the excess could be taxed at your highest tax rate.
• The maximum individual retirement account (IRA) contribution you can make in 2017 remains unchanged at $5,500 if you are under age 50 and $6,500 if you are 50 or older.
• The maximum amount of wages employees can contribute to a 401(k) plan remains at $18,000, with an additional $6,000 if you are 50 or older. The 2017 maximum contribution for SIMPLE plans is $12,500 and an additional $3,000 if you are 50 or older.
• The maximum you can contribute to a health savings account in 2017 is $3,400 for individuals and $6,750 for families. The catch-up contribution if you're age 55 or older is $1,000.

COUPLES AND MONEY: FIVE RESOLUTIONS FOR 2017

Do you have a financial plan that works for both you and your spouse? Here are suggestions that can help.

HOW SOCIAL SECURITY BENEFITS ARE TAXED

Are you wondering if your social security retirement, survivor, and disability benefits will be subject to federal income tax on your 2016 return? Generally, when these benefits are taxed is determined by your "provisional income."

COMPLETE THESE RETIREMENT PLAN STEPS BEFORE YEAR-END

December 31 is the last day you can benefit from certain retirement tax breaks. For example, if you haven't put the maximum amount allowed in your 401(k) – $18,000 in 2016 – increasing your contributions can save you money. If you're over age 50, you can make a catch-up contribution to a 401(k) of an additional $6,000. If you're age 70½ or older, remember to take required minimum distributions from retirement plans to avoid a penalty. For more tips on managing your retirement plans, contact us at (518) 798-3330.

NEW RELIEF FOR 60-DAY ROLLOVER ERRORS

One of the pitfalls of receiving a distribution from your IRA with the intention of "rolling it over," or depositing it into another IRA or retirement plan, is the 60-day rule. Under the rule, you're required to complete the rollover within 60 days of receiving the distribution. If you miss the deadline, you have to include the distribution in your income and perhaps pay a penalty. In the past, you generally had to request a special statement from the IRS to avoid that outcome. Now the IRS says you may qualify for a waiver if you meet one of eleven allowable reasons. Contact us at (518) 798-3330 for details.

GET SERIOUS ABOUT CATCHING UP

If you're age 50 or older, tax law has a permanent provision that lets you make extra contributions to your retirement plans. These "catch-up" contributions vary depending on the type of retirement plan. For example, if you participate in a SIMPLE, you can make a catch-up contribution of up to $3,000 in 2016, over and above the maximum $12,500 salary reduction contribution. For IRAs, both Roth and traditional, the 2016 catch-up contribution is $1,000.

SAVING FOR A COMFORTABLE RETIREMENT IS UP TO YOU

If your employer offers a 401(k) plan, participating can mean the difference between having a sufficient nest egg and worrying about your expenses after you stop working. Tips for making the most of your 401(k) include contributing at least enough to receive the amount your company will match, and allocating your contributions between different types of investments in a way that meets your tolerance for risk while still allowing for the growth rate you need. The retirement clock is ticking. Contact us at (518) 798-3330 for more suggestions about ways you can save.

DON'T LOSE PART OF YOUR IRA INHERITANCE TO PENALTIES

If you inherit an Individual Retirement Account from someone other than your spouse, you may be surprised to learn you have to take distributions. That's generally the case whether the IRA is a traditional or a Roth account. If you fail to take the distributions as required, you may owe a penalty of as much as 50% of the amount you should have taken. Distributions from inherited IRAs have specific deadlines. Contact us at (518) 798-3330 for help managing these key dates.

DID YOU INHERIT AN INDIVIDUAL RETIREMENT ACCOUNT?

Distribution rules are different for beneficiaries than for account owners.  Contact us at (518) 798-3330 for more information.

GET CREDIT FOR RETIREMENT CONTRIBUTIONS

Did you make contributions to a traditional or Roth IRA, a myRA, or a SEP or SIMPLE plan in 2015? You may qualify for the Retirement Savings Contributions Credit, more popularly known as the "saver's" credit. If you're eligible, you can apply this federal income tax credit against the tax you owe on your 2015 return. The credit is available even if you take a tax deduction for a traditional IRA contribution, as well as for IRA contributions for last year that you make before the April due date of your return.

DECIDE WHEN TO START SOCIAL SECURITY BENEFITS

Whether you should take social security retirement benefits at the earliest possible date or defer benefits until reaching normal retirement age (or even age 70), depends on several factors.

SUMMER JOB TAX TIP

If your child has a summer job, consider opening an IRA for him or her. According to the tax rules, anyone under age 70½ who has earned income can contribute to a traditional IRA. There's no age restriction for Roth accounts, though the amount of the contribution phases out at higher income levels. The advantage of a Roth over a regular IRA is that withdrawals in retirement will be tax-free. The contribution limit for both kinds of IRA for 2015 is the lesser of the child's earned income or $5,500.