Dear Liz: I began converting two 401(k)s from previous employers to Roth IRAs. To lessen the huge tax hit, I decided to do the conversions over the course of seven years. Even with that, the tax hit is higher than I realized and too painful. Now that partial conversions have begun annually, am I required […]
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Q&A: IRS changes on required withdrawals
Dear Liz: When informing me of my required minimum distribution for 2022, my brokerage has apparently used a distribution period that differs from the one used in past years. This results in a distribution amount that’s noticeably smaller. I recall there was some talk of revising the IRS tables, but has this been done? Answer: […]
Thursday’s need-to-know money news
Today’s top story: How to budget realistically for home repairs. Also in the news: A new episode of the Smart Money podcast on small business owners who pivoted during covid, how a billion dollar jackpot actually works, and 5 ways to spend a billion dollars. How to Budget Realistically for Home Repairs If you’re a […]
Wednesday’s need-to-know money news
Today’s top story: Fed raises target rate again. Also in the news: How big wheels cost you big bucks at the pump, how to cope with Airbnb cleaning fees, and how airline prices are going up in more ways than one. Fed Raises Target Rate Again, but Mortgage Rates Are Unfazed Each Federal Reserve announcement […]
Tuesday’s need-to-know money news
Today’s top story: 3 times debt can be a helpful tool. Also in the news: How to buy stuff that lasts, how to plan for big expenditures, and how small daily purchases really affect your long-term finances. 3 times debt can be a helpful tool When debt serves a purpose. How to Buy Stuff That […]
How to budget realistically for home repairs
If you’re a homeowner and haven’t faced a big repair bill yet, just wait. Even in the best-maintained homes, stuff will wear out or break. Budgeting for these inevitable bills isn’t always easy. One commonly cited rule of thumb — to save 1% to 4% of your home’s value each year for maintenance and repairs […]