Is this you? As a journalist, you can create a free Muck Rack account to customize your profile, list your contact preferences, and upload a portfolio of your best work.
Claim your profile
Articles by Mike Piershale
Should You Roll Over Your Retirement Plan When You Retire?
When a person retires with a company retirement plan, it’s important to know the pros and cons of rolling over to an IRA vs. leaving your money in the plan. And you won’t come up with the same answer for everyone. For example, if you retire between the ages of 55 and 59½, and you need to take money out of your retirement plan to pay off your mortgage, in most cases it would be far better to leave your money in the company plan, at least until you take this withdrawal.
Inherited Retirement Plan? How to Easily Understand Payout Rules
With the passage of the SECURE Act, there have been changes in required payouts for beneficiaries on retirement plans and IRAs that have many people in a state of confusion. The retirement accounts that are affected by these rule changes include 401(k) plans, 403(b) plans, 457(b) plans and traditional IRAs and Roth IRAs. And keep in mind that with all but the Roth, these required payouts will trigger taxes.
Ways to Avoid the Penalty on Early Retirement Withdrawals
Pulling money from your pre-tax retirement accounts before age 59½ should be done only as a last resort, since it can end up triggering both a 10% penalty as well as ordinary income tax. A far better solution is to use money from non-retirement accounts, such as joint accounts, single accounts or most trust accounts, where there will be no penalty on early retirement withdrawal and often little or far less tax.
Safe Harbor 401(k)s Can Help Small-Business Owners Keep Happy Employees
A safe harbor 401(k) is a great way for small-business owners to reward employees and keep them happy by making generous retirement contributions on their behalf that are immediately vested. And business owners know that finding and keeping good employees is one of the keys to increasing profits. Immediate vesting means an employee doesn’t have to wait a few years in order to receive 100% of the employer contributions, so they can leave the company anytime if they want.
Recession or Not? We Could Be in the Eye of the Storm
investing Our economy is showing one major sign we’re in a recession, but there are at least seven other red flags currently waving. It’s tough to ignore a threat like that. After suffering the worst six-month loss in over 50 years the S&P 500 and other indexes stabilized and then rallied for two months only to face more volatility to the downside. It’s very likely that the downturn we have been experiencing will get much worse and the bear market is likely not over.
The Best Way for Kids to Save Isn’t in a Boring Bank Account
Most kids are encouraged by their parents to save their money from their paper route or part-time job by throwing it into a bank savings account. While any kind of saving is better than nothing, there may be a way to do it where your kids can get tax benefits as well as a potentially better rate of return. A Roth IRA, if properly invested, will likely appreciate in value far more than money sitting in the bank — and could do it with tax-free growth.
Simple, Time-Tested Ways to Protect Your 401(k) from a Crash
You’ve saved all your life to build up your 401(k) plan, and now in this period of stock market turbulence you’re worried about substantial losses. What can you do? Of course, you can’t control what happens in the stock market, so focus on what you can control: yourself. Follow these simple tips to minimize your losses and maximize the chances that you’ll stay on track for a secure retirement.
If January Predicts the Rest of the Year, Investors Could Be Hurting
Markets It’s known as the January Barometer, but how accurate is it? Let’s dissect this interesting stock market statistical phenomenon by checking the numbers for the last 72 years. The month of January 2022 is over, and it wasn’t a pretty one for investors. The Standard & Poor’s 500 closed at 4516, down 251 points, or 5.3%, for the month. Now, for some more potential bad news: If you believe a popular stock barometer, the market pain might just be getting started.
A Simple RMD Mistake That Can Cost Retirees Thousands
required minimum distributions (RMDs) Do you know exactly what your required minimum distribution should be? Did you take more than you had to last year? If you need extra cash, there could be a better place to get it. It is fairly common for people taking required minimum distributions out of retirement accounts, such as IRAs, to pull out more than the required amount, often without even being aware they are doing so — triggering unnecessary taxes.
You Could Accidentally Disinherit Your Children Unless You Follow This Obscure Rule
A mom and daughter talk on a couch. Getty Images If you’re widowed or divorced and have named your children as the beneficiaries of your company retirement plan, you could be putting them at risk of being disinherited if you remarry. Due to a little-known ERISA rule, if your new spouse outlives you, they will receive your company plan funds, rather than your children — even if you have put your children down as your named beneficiaries.
How You Might Save on Taxes Just by Shifting Your Investments Around
tax planning A quick look at your tax return can reveal some easy ways to reduce your taxes this year. One is to reallocate your investment income to make it more tax-efficient. And it’s not as complicated as it sounds. Because most financial advisers do not look at an investor’s tax returns, they provide little guidance in making sure the portfolio is being managed in the most tax-efficient manner possible.
ETFs vs. Mutual funds: Why Investors Who Hate Fees Should Love ETFs
ETFs Exchange-traded funds offer a huge cost savings to consumers over mutual funds. Here’s why, and a couple of quirks about ETFs to watch out for as well.
How to pay no tax on your capital gains
How to pay no tax on your capital gains By: Mike Piershale Posted on: March 17, 2021 One opportunity that investors should never pass up is the ability to convert a taxable long-term capital gain into tax-free basis — without paying taxes to do so. This is known as harvesting long-term capital gains. It’s a process of intentionally selling an investment with a taxable long-term capital gain, in a year when — due to low income — that gain will not be taxed.
How to Possibly Pay 0% in Taxes on Your Taxable Investment Gains
tax planning Don’t miss out: Certain people with low enough taxable incomes can sell stocks or mutual funds to convert their taxable gains into tax-free money. Here’s how. One opportunity that investors should never pass up is the ability to convert a taxable long-term capital gain into tax-free basis … without paying taxes to do so. This is known as harvesting long-term capital gains.
Joint Trusts or Separate Trusts: Advice for Married Couples Original
estate planning Unless you have a specific need for separate trusts, it’s usually best to avoid the headaches they cause and go with a joint trust instead. Here’s why. A revocable living trust is usually the best way to pass your assets to your heirs after you are gone. Unlike a will, assets titled in a revocable living trust avoid both the time and expense of going through the probate courts and keep your financial affairs from becoming a matter of public record.
How To Buy a Roth IRA When You Make Too Much To Qualify For One
Roth IRAs With their tax-free growth and tax-free withdrawals, Roth IRAs are a great deal — if you qualify. If you don’t, well, there’s still a way to get into the game in a big way. While contributions to a Roth IRA are never tax deductible, these accounts grow tax-free and any qualified withdrawals come out tax-free as well — which makes them a great deal.
Your 401(k)s and IRAs Have a Dark Side
401(k)s Yes, they are a tax-advantaged way to save for retirement, but they come with some disadvantages you should know about. Two people can look at a Rorschach ink blot and one will see a refined, beautiful woman and another will see an old spinster. The same can be said of your retirement savings. You can also look at a retirement account and see all the good points or look at it from a different perspective and see all the shortcomings.
Roth IRA Conversions are on Sale
Many retirement savers can get an extra-good deal on Roth conversions right now. Here's why. While we hope for an end to the current coronavirus pandemic, there may be a silver lining for retirement savers during this time of disruption. If you can manage doing a Roth IRA conversion, you’ll likely pay a lot less to do it now. SEE ALSO: 3 Silver Linings from Coronavirus Shine for Savers and Investors Today Why? For a few reasons.
Financially, Marriage Makes a Lot of Sense for Retirees
There are some major financial benefits to tying the knot. From IRAs to Social Security and tax exemptions, there are many reasons (besides the obvious one: love) for older couples to say I do. There are many financial pros and cons to getting married, but for those close to retirement who have been dating for a long time, there are several federal laws that provide some good financial reasons to give it some serious consideration.
Want to Beat Boring CDs? Munis Can Be a Conservative Way to Increase Yield
Often retirees will have excess funds sitting in the bank. Far more than they need for an emergency. And in some extreme cases, they have all their money in the bank because they don't feel comfortable putting it in stock-related portfolios. SEE ALSO: The 9 Types of People You'll Meet in Retirement The result is that they may spend their golden years struggling to have enough income to live a comfortable lifestyle.
Want to Beat Boring CDs? Munis Can Be a Conservative Way to Increase Yield
Municipal bonds come with some risks that bank CDs don't, but there are ways to minimize them while still getting a better return. Plus, the interest you earn is tax free, and who doesn't love that? Often retirees will have excess funds sitting in the bank. Far more than they need for an emergency. And in some extreme cases, they have all their money in the bank because they don't feel comfortable putting it in stock-related portfolios.
New Pass-Through Tax Deduction Could Be a Bust for Business Owners
As part of the Tax Cuts and Jobs Acts passed in December of 2017, IRC Section 199-A was created, which allows owners of small businesses -- including partners, owners of S corporations and sole proprietorships -- a deduction of up to 20% of qualified business income. In general, qualified business income is referring to the profits of the company.
New Pass-Through Tax Deduction Could Be a Bust
When all is said and done, the QBI deduction could actually end up forcing people who save for retirement in a SIMPLE IRA, SEP IRA or 401(k) to pay more in taxes, not less. As part of the Tax Cuts and Jobs Acts passed in December of 2017, IRC Section 199-A was created, which allows owners of small businesses — including partners, owners of S corporations and sole proprietorships — a deduction of up to 20% of qualified business income.
How to Recover from a Pre-Retirement Financial Crisis
Having a personal financial setback when you're closer to retirement can be doubly stressful. You're dealing with both the financial reversal, and the realization that you have less time to earn the money back. SEE ALSO: I Wish I Had Done This Years Ago: Financial Regrets Perhaps you had to deal with a job loss, an expensive illness, divorce or a business failure. Or it may be that you just haven't saved enough or you've racked up too much debt to retire.
How to Recover from a Pre-Retirement Financial Crisis
If you're close to retirement, the pressure is on because you don't have much time to bounce back from something like a job loss or divorce. Having a personal financial setback when you're closer to retirement can be doubly stressful. You’re dealing with both the financial reversal, and the realization that you have less time to earn the money back.
Beware of Kiddie Taxes When You Leave Heirs Your IRA
The Tax Cuts and Jobs Act has imposed a major change on how children are taxed on unearned income, which includes required minimum distributions from inherited IRAs. The result? Tax rates on these required distributions now could be a lot higher. SEE ALSO: Which Bucket Should Retirees Tap First, for Their Heirs' Sake? A kiddie tax, as it is better known, is imposed on a child's investment income above an exemption amount, which was $2,100 in 2018 and is $2,200 in 2019.
Beware of Kiddie Taxes When You Leave Heirs Your IRA
Children and grandchildren inheriting traditional IRAs could quickly find themselves in the top 37% tax bracket thanks to changes ushered in by the Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act has imposed a major change on how children are taxed on unearned income, which includes required minimum distributions from inherited IRAs. The result? Tax rates on these required distributions now could be a lot higher. SEE ALSO: Which Bucket Should Retirees Tap First, for Their Heirs' Sake?
Beware of Kiddie Taxes When You Leave Heirs Your IRA
Children and grandchildren inheriting traditional IRAs could quickly find themselves in the top 37% tax bracket thanks to changes ushered in by the Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act has imposed a major change on how children are taxed on unearned income, which includes required minimum distributions from inherited IRAs. The result? Tax rates on these required distributions now could be a lot higher. SEE ALSO: Which Bucket Should Retirees Tap First, for Their Heirs' Sake?
Should You Treat Your Kids Equally in Your Will? 12 Financial Planners Weigh In
"I always knew Mom and Dad loved you best." That's not what parents want to hear ... but it's what a lot of kids feel, even though their parents swear that they love their children equally. When parents sit down to write their wills, that is the issue they must face head on. So, how do they do the right thing, keep the peace and not play favorites? Should they even try?
Assets are Not Created Equal: Retirement Accounts Are Different
Pre-tax retirement accounts like an IRA or a 401k plan are significantly different from your other assets and understanding these differences is the first step to protecting yourself from triggering unnecessary taxes and penalties. First, they do not pass to your heirs through a will or a trust like your other assets, such as your house or checking account. Instead, they pass through a beneficiary form. (Thomas B.
Tracking Down IRA Basis: A Gold Mine for Beneficiaries
IRA basis represents the funds in an IRA that have already been taxed, either because they were nondeductible IRA contributions, or they were after-tax funds rolled over from company retirement plans prior to the IRS rule change in September of 2014.
Tracking Down IRA Basis: A Gold Mine for Beneficiaries
No one likes to pay taxes unnecessarily, but that's what a lot of people who inherit IRAs end up doing. Failing to track down the IRA basis associated with an inheritance can be a costly mistake. IRA basis represents the funds in an IRA that have already been taxed, either because they were nondeductible IRA contributions, or they were after-tax funds rolled over from company retirement plans prior to the IRS rule change in September of 2014.
Tracking Down IRA Basis: A Gold Mine for Beneficiaries
No one likes to pay taxes unnecessarily, but that's what a lot of people who inherit IRAs end up doing. Failing to track down the IRA basis associated with an inheritance can be a costly mistake. IRA basis represents the funds in an IRA that have already been taxed, either because they were nondeductible IRA contributions, or they were after-tax funds rolled over from company retirement plans prior to the IRS rule change in September of 2014.
What to Do with All Those Old 401(k)s and IRAs
By age 50, baby boomers have held an average of 12 different jobs, according to the Bureau of Labor Statistics. In many cases, they may have several company retirement plans from old employers, as well as an IRA or two, along with at least one Roth IRA. SEE ALSO: Leaving a Job? How to Decide If You Should Do a 401(k) Rollover or Not By combining these accounts, you may be able to save both time and money and make your life more stress-free.
What to Do with All Those Old 401(k)s and IRAs
It's about as fun as herding cats, but rounding up all your IRAs and 401(k)s into just one or two accounts can really simplify your financial life. By age 50, baby boomers have held an average of 12 different jobs, according to the Bureau of Labor Statistics. In many cases, they may have several company retirement plans from old employers, as well as an IRA or two, along with at least one Roth IRA. SEE ALSO: Leaving a Job?
What to Do with All Those Old 401(k)s and IRAs
It's about as fun as herding cats, but rounding up all your IRAs and 401(k)s into just one or two accounts can really simplify your financial life. By age 50, baby boomers have held an average of 12 different jobs, according to the Bureau of Labor Statistics. In many cases, they may have several company retirement plans from old employers, as well as an IRA or two, along with at least one Roth IRA. SEE ALSO: Leaving a Job?
Holy Doughnut Hole: Medicare Part D Costs and Deductibles for 2019
As seniors weigh their prescription drug coverage during annual enrollment, it pays to review the basics of how it works, how much it costs and how the "doughnut hole" may affect them.
Should You Treat Your Kids Equally in Your Will?
"I always knew Mom and Dad loved you best." That's not what parents want to hear ... but it's what a lot of kids feel, even though their parents swear that they love their children equally. When parents sit down to write their wills, that is the issue they must face head on. So, how do they do the right thing, keep the peace and not play favorites? Should they even try?
Caring for Your Aging Parents: How to Prepare
Caring for aging parents is something you hope you can handle when the time comes, but it's the last thing you want to think about. Whether the time is now or somewhere down the road, there are steps you can take to make your life -- and their lives, too -- a little easier. The first step is talking to your parents. How will you know when it's the right time to do this?
Caring for Your Aging Parents: How to Prepare
The time to get ready is well before the time comes. Here's how to approach some important talks and what you need to cover. Caring for aging parents is something you hope you can handle when the time comes, but it's the last thing you want to think about. Whether the time is now or somewhere down the road, there are steps you can take to make your life — and their lives, too — a little easier. The first step is talking to your parents. How will you know when it's the right time to do this?
Is Downsizing in Retirement Right for You?
A smaller home, with fewer possessions to weigh you down and lower bills to boot: What's not to like? For many folks, downsizing makes a lot of sense, but there are a few points to consider. Going through years of accumulated possessions and memories is probably not how you envisioned spending part of your retirement. It may sound like a daunting and emotionally draining task, but downsizing could be a savvy financial move, especially if you haven’t reached your retirement savings goals.
Is Downsizing in Retirement Right for You?
A smaller home, with fewer possessions to weigh you down and lower bills to boot: What's not to like? For many folks, downsizing makes a lot of sense, but there are a few points to consider. Going through years of accumulated possessions and memories is probably not how you envisioned spending part of your retirement. It may sound like a daunting and emotionally draining task, but downsizing could be a savvy financial move, especially if you haven't reached your retirement savings goals.
Is Downsizing in Retirement Right for You?
Going through years of accumulated possessions and memories is probably not how you envisioned spending part of your retirement. It may sound like a daunting and emotionally draining task, but downsizing could be a savvy financial move, especially if you haven't reached your retirement savings goals. Before making any decisions, think about why you want to downsize in the first place.
Avoiding the 50% Penalty on Overlooked RMDs
You're busy enjoying retirement and you just plain forget to take your required minimum distribution. Or you do the math wrong. It could be a costly mistake. Here's how to fix it. There’s no denying the tax benefits of funding a retirement account, one of which is the compound effect of tax-deferred growth. But your money can’t avoid the IRS forever.
Avoiding the 50% Penalty on Overlooked RMDs
There's no denying the tax benefits of funding a retirement account, one of which is the compound effect of tax-deferred growth. But your money can't avoid the IRS forever. That's why owners and beneficiaries of traditional IRAs , SEP and SIMPLE IRAs , 401(k)s and 403(b) accounts must meet the deadline for taking their required minimum distributions (RMD), which kick in once they reach the age of 70½.
Senior Marriage and Social Security: Rules to Know
Romance aside, you may want to delay your wedding date (or divorce, if that's the case) to get the best Social Security benefit possible. You may want to push the pause button before taking that walk down the aisle if you're close to retirement and counting on income from Social Security. There are some important rules you need to know to time that wedding day to maximize your Social Security benefits.
Senior Marriage and Social Security: Rules to Know
You may want to push the pause button before taking that walk down the aisle if you're close to retirement and counting on income from Social Security. There are some important rules you need to know to time that wedding day to maximize your Social Security benefits. The most uncomplicated scenario would be getting married for the first time, with no ex-spouse or deceased spouse in the background of either spouse.
3 Ways to Make Money in Company Stock
Most employees are familiar with the company match on their 401(k) if it's available to them, and many employers do the matching with company stock. For example, if the employee puts in 6% or more of their salary into their company plan, the employer may match the first 3% dollar for dollar with company stock and the second 3% with 50 cents on the dollar.
3 Ways to Make Money in Company Stock
If your company offers you the opportunity to invest in its stock, it could come with some significant tax benefits and growth prospects. Most employees are familiar with the company match on their 401(k) if it’s available to them, and many employers do the matching with company stock. For example, if the employee puts in 6% or more of their salary into their company plan, the employer may match the first 3% dollar for dollar with company stock and the second 3% with 50 cents on the dollar.
A Healthy Way to Increase Your Retirement Savings: HSAs
Opening a health savings account (HSA) offers a triple tax advantage. The catch is they are not available to everyone. To qualify you must be in a high-deductible health insurance plan (HDHP), you can't be enrolled in Medicare, and you can't be participating in another health insurance plan. Unlike an IRA contribution you do not have to have at least one spouse with earned income to qualify.
Show More
loading
Actions
Is this you?
As a journalist, you can create a free Muck Rack account to customize your profile, list your contact preferences, and upload a portfolio of your best work.Get in touch with Mike
Contact Mike, search articles and posts on X, monitor coverage, and track replies from one place.
Learn more about Muck Rack