Penalties

Retirement Tax Rules: Key Facts to Save Money and Avoid Penalties

Chicago, IL – Saving for retirement in accounts like IRAs or 401(k)s can provide a significant advantage by deferring taxes, giving individuals more money to invest presently. However, navigating the rules surrounding required minimum distributions (RMDs) is crucial to avoid penalties and ensure tax compliance. Seniors are mandated to start withdrawing funds from their retirement accounts and paying taxes on those withdrawals as part of the RMD rules. Failing to make these required distributions on …

Read more

FRA Impacts Social Security – Don’t Get Hit with Early Retirement Penalties

As baby boomers reach retirement age, the decision of when to claim Social Security benefits becomes increasingly important. In 2024, those turning 66 may find themselves eager to claim their benefits, believing they can do so once they reach this milestone age. However, the reality is that claiming Social Security benefits at 66 may not be as straightforward as it seems. In fact, for some individuals, waiting until 2025 may be necessary in order to …

Read more

Medicare Enrollment: Key Ages and Penalties You Need to Know Before Retirement

Boston, MA – As individuals approach retirement, there are essential ages to keep in mind for financial planning. Understanding when to claim Social Security benefits is crucial, as the full retirement age for individuals born in 1960 or later is 67. However, individuals have the option to start collecting smaller benefit checks as early as 62 or wait until age 70 for larger benefits, necessitating careful consideration. Turning 65 is significant as it marks the …

Read more

Enrollment Deadline Dilemma: Late Penalties Plague Medicare Applicants

Denver, Colorado – As Americans approach the age of 65, they become eligible for the Medicare health insurance program. However, many individuals choose to delay signing up for various reasons, which can have significant financial implications. The enrollment deadlines for Medicare Part B and Part D are crucial, as missing these deadlines can result in late-enrollment penalties that individuals will have to pay along with their monthly premiums for the rest of their lives. The …

Read more

Social Security Surprise: Retirees Facing Unexpected Taxes and Penalties

New York, NY – Social Security benefits can be a surprise tax burden for retirees across the country. Many are unaware of the potential taxes they may face on their Social Security income even after retirement. Mark Miller, author of “Retirement Reboot” and a Morningstar contributor, delves into the complexities of Social Security taxation and offers valuable insights on how retirees can navigate this issue. Income from Social Security is treated similarly to other forms …

Read more