Ed Lyon, a pioneering urologist at the University of Chicago, wanted his retirement account to go to his 36 grandchildren. Seven years after his death, his heirs are still fighting to make that happen.  The family’s appeals to both the university and the account’s record-keeper, TIAA, were rebuffed. They were told they hadn’t provided the […]

529 Plans: The Ins and Outs of Contributions and Withdrawals 529 plans can be powerful college savings tools, but you need to understand how your plan works before you can take full advantage of it. Among other things, this means becoming familiar with the finer points of contributions and withdrawals. How much can you contribute? […]

The Roth 401(k) Some employers offer 401(k) plan participants the opportunity to make Roth 401(k) contributions. If you have access to this option, Roth contributions could play an important role in helping enhance your retirement income. What is a Roth 401(k)? A Roth 401(k) is a traditional 401(k) plan that accepts Roth 401(k) contributions. Roth […]

Cash Balance Plan What is a cash balance plan? A cash balance plan is a qualified employer-sponsored retirement plan that has become increasingly common in recent years as an alternative to (or replacement of) the traditional defined benefit pension plan. Though it is technically a form of defined benefit plan, the cash balance plan is […]

What is the Roth 401(k) five-year rule? The Roth 401(k) five-year rule determines when you can begin receiving tax-free qualified distributions from your 401(k) plan Roth account. While it’s similar to the five-year rule that applies to Roth IRAs, there are important differences. Withdrawals from your Roth 401(k) plan account — including both your contributions […]

Estate Planning and 529 Plans When you contribute to a 529 plan, you’ll not only help your child, grandchild, or other loved one pay for school, but you’ll also remove money from your taxable estate. This will help you minimize your tax liability and preserve more of your estate for your loved ones after you […]

Members of the Military: Estate Planning Whether you’re a veteran or just starting out in the military, planning and preparing your estate is of vital importance. Why is estate planning so critical? Because, at your death, you leave behind the people you love and all your worldly goods. Without proper planning, you have no say […]

Estate Tax Changes Under Recent Tax Acts This article summarizes the changes made to the federal gift and estate tax and the federal generation-skipping transfer (GST) tax under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Act), the American Taxpayer Relief Act of 2012 (the 2012 Tax Act), […]

Understanding Probate When you die, you leave behind your estate. Your estate consists of your assets — all of your money, real estate, and worldly belongings. Your estate also includes your debts, expenses, and unpaid taxes. After you die, somebody must take charge of your estate and settle your affairs. This person will take your […]

Notable Changes for Tax Year 2025 The tax year 2025 adjustments described below generally apply to income tax returns to be filed starting tax season 2026. The tax items for tax year 2025 of greatest interest to many taxpayers include the following dollar amounts: ·         Standard deductions. For single taxpayers and married individuals filing separately for […]