Don’t wait one moment longer. Succession planning for family businesses is often complicated and even emotional. Creating a clear and cohesive plan for how ownership will pass to the next generation is critical to avoiding conflicts that could harm or even end the company. This article discusses strategies that family business owners should consider when developing a solid succession plan.
Required minimum distributions (RMDs) from qualified retirement plans and IRAs were suspended for the 2020 tax year under the CARES Act. But the reprieve was only temporary. So, people who previously took RMDs must resume distributions in 2021, while anyone who turned 72 last year or will turn 72 this year must start taking RMDs. Here are answers to common questions about the RMD rules.
Do you have a traditional IRA? You may have wondered whether you should take money out of it when financial needs come up. If you are under age 59 1/2, there’s generally a 10% penalty for early withdrawals — in addition to any regular income tax on the amount. However, there are exceptions to the penalty, as explained in this article, plus a note about retirement plan loans related to COVID-19.
Many people are uncertain whether their retirement savings will be sufficient to sustain their desired lifestyle in the future. Employment and savings disruptions during the pandemic may have further complicated this matter. Here’s an arithmetic exercise to help eliminate the guesswork. The sooner you discover any shortfall, the less painful it will be to make any needed adjustments to get your savings back on track.