AVOIDING RETIREMENT PLANNING MISTAKES:
- The most significant mistake is not saving enough during working years. A recommended practice is contributing 10-15% of income to a retirement plan like a 401(k), 403(b), or an IRA.
- The earlier the start in saving for retirement, the better, due to the benefits of compound earnings. Relying solely on Social Security is not advisable.
COMMON ROLLOVER MISTAKES TO AVOID:
- Not adhering to the one-per-year rule for IRA rollovers can result in significant tax implications and a 6% tax for excess contributions.
- Missing the 60-day deadline for rollovers from an IRA to another plan can result in the distribution being added to adjusted gross income.
- Losing the ability to take the 10% penalty exception for early withdrawals from qualified plans. Different rules apply for IRAs and 401(k) plans.
- Performing a rollover from a 401(k) to an IRA with an outstanding loan against the 401(k) can lead to taxable distribution and potential penalties.
ADVICE FOR RETIREMENT PLANNING AND ROLLOVERS:
- Consult with a CPA or financial advisor before performing rollovers.
Certified Kingdom Advisors (CKAs) can offer guidance on retirement planning and rollovers.
ON TODAY'S PROGRAM, ROB ALSO ANSWERS LISTENER QUESTIONS:
- I'll be 66 and a half next June; when will I start receiving Social Security benefits if I claim them in June?
- My mother is selling a piece of real estate for over a million dollars with a cost basis of about $60,000; how can we manage potential capital gains tax?
- My son has $15,000 saved and wants to buy a new used vehicle; where can we get a decent rate for an auto loan for the remaining amount?
- I have a six-month emergency fund not growing in a savings account; where should I invest it for some return?
- I'm 65 and have a small retirement fund of $70,000; how can I grow this amount being close to retirement?
- My husband retired from a company that relocated and we're struggling to get his retirement fund; how can we trace and claim it?
RESOURCES MENTIONED:
Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network as well as American Family Radio. Visit our website at FaithFi.comwhere you can join the FaithFi Community, and give as we expand our outreach.
Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.
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