Did you know that you can transfer funds directly from your IRA to a Health Savings Account (HSA) without taxes or penalties? According to the IRS, you’re permitted to make one such “qualified HSA funding distribution” during your lifetime. Ordinarily, if you have an IRA and an HSA, it’s typically a good idea to contribute [...]
Many Americans receive disability income. If you’re one of them or know someone who is, you may wonder whether it’s taxable. As is often the case with tax questions, the answer is “it depends.” KEY FACTOR The key factor is who paid it. If the income is paid directly to you by your employer, it’s [...]
Receiving a sudden and sizable influx of cash may seem like a dream come true. It can be, but many people get blown away by a windfall and end up in worse financial shape. RISKY CONDITIONS Perhaps the most obvious example is you may be tempted to immediately buy an expensive new car or home. [...]
Because of the current estate tax exemption amount ($11.7 million in 2021), many estates no longer need to be concerned with federal estate tax. Years ago, a much smaller exemption amount put more pressure on estate plans to avoid it. Now that many estates won’t be subject to estate tax, you can devote more energy [...]
Many banks conduct regular “stress” tests to predict the impact of adverse external events on their earnings, capital and loan portfolios. Banks use the results to shore up any revealed weaknesses. Investors should periodically perform similar stress tests on their investment portfolios. Stress testing is the ultimate “what if” analysis. It uses modeling techniques to [...]
Many young adults are heading off or back to college in the fall. It’s particularly exciting this year because of high hopes that, thanks to mass vaccinations, students will be able to have something approaching a traditional college experience. If your child has been awarded a scholarship, that’s cause for celebration, too! But be aware [...]