In most families there are two types of people – the savers and the spenders. Statistics suggest that many couples argue or even divorce over money issues, and this is predominately due to either not making enough money or spending too much money.

It is important to understand your attitude towards money; mostly it is formed during our childhood. If someone had parents that were constantly arguing about a lack of money, this often turns them into a dedicated saver as they don’t want to be in the same position as their parents. Conversely, a person who grew up in a family that didn’t talk about money, or where money posed no issues, often emerges as a spender because of the lack of financial guidance. (more…)

Each quarter, you should receive information in a statement from your plan administrator about the fees and expenses charged to your plan. This fee disclosure is designed to help you assess the value you receive by participating in your plan, and to help you compare your investment options on an apples- to-apples basis.

This “plan-level” and “investment-level” disclosure information is required to be posted on a publicly accessible website. Check with your plan administrator if you have questions.

Some only contact a CPA once a year —  when preparing a tax return.

But checking in with a knowledgeable CPA before taking money from your retirement account, or a traditional or inherited IRA, may help you avoid poorly timed withdrawals that may increase your taxable income, or the taxes you pay on your Social Security benefits.

Hiring a tax advisor can ultimately save you a lot of money over the course of a retirement that can last 30 years or more

Companies strive to do their best to avoid situations that could lead to participant lawsuits against 401(k) plans. Part of that is using prudent processes in the plan.

Since the inception of the Employee Retirement Income Security Act of 1974 (ERISA), the prudent person rule has provided a good rule of thumb. To paraphrase, it states that an appropriate decision is one that a prudent person, with similar skill and circumstances, would make. It does lack (more…)

• Prepare to send year-end payroll and updated census data to the plan’s recordkeeper in January for year-end compliance testing (calendar-year plans).
• Verify that participants who terminated during the second half of the year selected a distribution option for their account balance and returned the necessary
• Review plan operations to determine if any ERISA or tax-qualification violations occurred during the year and if using an IRS or DOL self-correction program would be appropriate.

Consult your plan’s financial, legal, or tax advisor regarding these and other items that may apply to your plan.