6. April 2010 by Dan Walkow, CFA, CMT.

The widely anticipated expansion of the Roth IRA conversion program steamrolled into 2010 in a blaze of hype and publicity, but a new report shows consumer interest has been more of a whimper than a bang. This tax break offers basically one year in which anyone with an Individual Retirement Account (IRA) can shift the money into a Roth IRA and never again pay tax on it.

Read more: http://www.time.com/time/business/article/0,8599,1977893-1,00.html#ixzz0kK2jJaxy

I think one of the most appealing aspects of the new IRA rules is for those investors who have more than enough retirement savings and are looking to “pass down” their IRA to their children who can grow and withdraw assets tax-free.

Posted in Tax, Pensions, Taxation | No Comments »

19. November 2009 by Dan Walkow, CFA, CMT.

The health of most pension plans continues to improve as stock markets recover, but it will be a long time before plan members in private industry can rest easy.The blow of last year’s investment losses is forcing more employers to question their ability to continue paying the same level or type of pension benefits in future.

Meanwhile, pensioners at companies other than Nortel Networks Corp., AbitibiBowater Inc. and others in bankruptcy protection could see their payouts reduced.

Even with this years stellar stock market, rally private pension plans remain seriously underfunded and the risk of pension payout reductions  poses a serious risk for pre and near retirees.

If you are a member of a defined benefit plan (where the company funds the pension) or a defined contribution plan (where the company and you contribute funds) you should review the status of your plan as to its health and capacity to meet future pension obligations.

 If you are concerned that the plan is at risk then you should consider rolling over your pension plan, 401K to a IRA in the USA or a LIRA in Canada.

Read the full story here.

Posted in Pensions, Retirement | No Comments »