5 Reasons To Consider Rolling Over A 401(k)

If you own a 401(k) and have changed jobs, experienced divorce, or are at retirement age, no doubt you’ve heard of a 401(k) rollover.  Put simply, a rollover is an IRS tax-qualified (tax-free) rollover of a 401(k) balance into your own Individual Retirement Account (IRA). But why do a rollover in the first place? What is the advantage? Continue reading "5 Reasons To Consider Rolling Over A 401(k)"

Securities-Backed Loans And Divorce

An innovative form of lending and financing is available to more affluent investors, and it can cause some confusion in the distribution of assets phase of divorce.  Many large brokerage firms, and some independent banks, offer clients what are known as “Securities-backed Loans,” which are essentially interest-only lines of credit that may be used for a variety of purposes, such as buying a vacation property or helping to finance college, and which are secured by an investment portfolio.  As practically important as they are, there are some important considerations and challenges with Securities-backed Loans and divorce. Continue reading "Securities-Backed Loans And Divorce"

529 Plans And Divorce

One of the most stubbornly perplexing investments couples encounter in their divorce is the 529 Plan.  The typical investment goal of the plan is college funding, but it can be used for many purposes.  But who owns it?  Is it marital?  What are the tax implications of liquidating?  Can you divide it? There are probably a half a dozen other questions that may come to mind in contemplating how to deal with 529 plans and divorce. Let’s see if we can help demystify this unique investment. Continue reading "529 Plans And Divorce"

Avoiding The 10% Penalty For Early Retirement Withdrawals

There are many circumstances where a person may need access to Traditional IRAs, 401(k)s, or other retirement funds, before they are of retirement age.  Typically, the IRS will impose a 10% penalty on withdrawals that you take prior to the age of 59 1/2.  But there are several instances where accessing these funds is possible without paying the penalty. Continue reading "Avoiding The 10% Penalty For Early Retirement Withdrawals"