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Personal Money Planning's Newsletter
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 Financial Planning Day Coming Up!
Tuesday, October 8th
12 p.m.; 3 p.m.; and 5:30 p.m.
Chase Tower, 5th Floor Conference Room
Personal Money Planning is celebrating Financial Planning Week. Michelle Kuehner, our Director of Operations and a Certified Credit and Financial Health Counselor, will lead seminars designed to introduce, remind or reinforce critical lessons in managing your personal finances.
During each 90-minute session, Michelle will touch on three aspects of financial well-being-how to easily budget your money; how to reduce and eliminate your debt; and how to start or continue saving for emergencies and your retirement. Come prepared to ask questions specific to your situation, as the day is meant to help you.
Sessions will begin at noon, 3 p.m. and 5:30 p.m. on October 8th in the 5th floor conference room at the Chase Tower (4245 Kemp Blvd.).
No RSVP required, but if you want to join the Facebook Event as a reminder, CLICK HERE.
Feel free to contact Personal Money Planning with any questions (940-692-6885).
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Gary's Soapbox
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Remove Those Pesky Excess Contributions!
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If you actively contribute to an IRA (traditional and/or Roth) it's important to be aware of how much you are permitted to contribute each year. The IRS keeps track and will penalize you with a 6% fee if you go over your allowable limit. But do not fear; the IRS gives you plenty of time to correct an error. For 2012, any excess contributions plus any earnings must be removed by October 15, 2013 to avoid the penalty.
Are you at risk of over contributing? Excess contributions can occur in a number of ways. The folks most vulnerable for contributing too much are those who have been laid off, newly retired, or over 70 ½. The general limits for 2012 for the traditional and Roth IRA are $5,000 ($6,000 if you are age 50 or older) or your taxable compensation; whichever is smaller. These limits are not per IRA but the total added to all of your personal IRAs combined. If you are over the age of 70 ½ you may no longer contribute to a traditional IRA, but the Roth IRA has no such age limit on contributions. On occasion these excess contributions occur when you have multiple IRAs held in different institutions and unintentionally exceed your total limit.
There are a few things to keep in mind when faced with excess contributions. You must treat withdrawn interest as gross income. If you are under the age of 59 ½ when you withdraw the excess contributions and earnings, you might also be required to pay the 10% early withdrawal tax on the earnings. If contributing to multiple IRAs, such as a Traditional IRA at Fidelity Investments and a Roth IRA at TD Ameritrade, the rule states that the last contribution is the excess contribution. If the last contribution was made in your TD Ameritrade account, you may not withdraw the excess from your Fidelity account.
The good news is that your IRA custodian is an expert on excess contributions. For our clients, TD Ameritrade has a simple form to remove the excess funds and will calculate and distribute the earnings simply. The key is to not delay and waste money on a tax penalty that can be avoided.
If you have questions about the calculation on earnings, the applicable tax forms, or any other tax related question, please seek the advice of your tax professional. If not removed correctly, or timely, the IRS will impose the 6% penalty.
-- Gary Silverman, CFP®
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Gary's Latest Articles
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From the Times Record News
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Gary's Retiring
...in about 15 years. But because he's been planning on it, he thought it would be beneficial to share the process and help other small businesses. First, a business owner needs to decide--will the company go on when they are no longer there? Read More...
There are three different types of business owner transition scenarios. Do you know what kind your business will fall into? Read More... |
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Money 101: Affordable Health Care Act (Obamacare)
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Guest Notice from Penny Miller, Venture HRO, LLC
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 There are lots of rules and regulations that businesses have to follow. What some don't know is that under the new Affordable Care Act (Obamacare) even companies of fewer than 50 employees or those who do not offer health care have to comply with certain rules. Here is some great information from my friend and H.R. expert, Penny Miller, of Venture HRO, LLC. --GaryEven though the "pay or play" mandate has been delayed until January 1, 2015, the individual mandate is currently still on track to be effective January 1, 2014. Therefore, the requirement remains for all employers to provide employees a notice concerning access to insurance exchanges by October 1. Model notices are available for employers which have health plans and those who do not. You can find model notices at the following links: If you have a health planIf you don't have a health planEmployers need to send the notice to all employees, not just those who are eligible for or who are enrolled in, their health plan. After October 1, employers will need to provide the notice to all newly hired employees within 14 days of hire. Notices must be sent by 1st class mail or electronically (as long as you meet the requirements for other electronic benefits notices.) If you'd like to learn more about this and other H.R. matters, sign up for Penny Miller's free weekly newsletter at venturehro.com or by email to admin@venturehro.com. |
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Final Thought: Up Market Not Logical
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If you've ever tried to tie logic to the short-term happenings in the markets, you know the true meaning of frustration. Just last week when the Federal Reserve Chairman, Ben Bernanke, said that they would continue with the current stimulus plan for at least another month, the stock market soared. It was, after all, great news.
Wasn't it?
Well, let's see. Bernanke told the financial throngs that the reasons for continuing the stimulus included:
A lack of conclusive evidence that jobs and the economy were in good health;
Home-buying was getting less affordable due to a recent increase in mortgage interest rates; and
Congress might shutdown the government next month due to political infighting.
Oh, heck yeah, that's all great news. No wonder the market went up.
(Sarcastic tone fully intended.)
Have a great week.
--Gary
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Copyright © 2013. All Rights Reserved.
©2013 Personal Money Planning . All rights reserved by Personal Money Planning and content may not be reproduced, disseminated, or transferred in any form or by any means, except with the prior written permission of Personal Money Planning unless specifically noted. (Permission is not difficult to obtain.) The one exception is for downloading and printing information from this newsletter for general education by the original recipient.
DISCLOSURE
This newsletter is produced by Gary Silverman, dba Personal Money Planning, a registered investment advisor located in Wichita Falls, Texas.
Information in this newsletter is believed to provide accurate and authoritative information in regards to the subject matter covered. However, the accuracy, timeliness, or applicability of the information is not guaranteed and is provided with the understanding that we are not rendering legal, accounting, tax, or other professional advice or services.
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