Blankenship Financial Planning, Ltd

01/15/2021

There can be confusion when it comes to the Roth name before retirement planning vehicles. This is an attempt to explain the difference between two very common retirement plans with Roth options – the Roth IRA and the Roth 401(k). Let’s start with the “Roth” part. Named after the senator that first introduced the legislation, having Roth in front of IRA or 401(k) means that contributions into the plan are made with after-tax dollars (money that’s already be subject to income taxation)....

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01/11/2021

If you have sporadic income throughout the year, using Form 2210 to explain your annualized income may help avoid penalties.

If you have sporadic income throughout the year, using Form 2210 to explain your annualized income may help avoid penalties.

12/18/2020

As the year comes to an end there are some things you may want to consider before 2021 arrives in just a few weeks. Increase your retirement savings. The maximum amounts allowed to 401k and IRA retirement plans remains unchanged for 2021 at $19,500 ($26,000 if over 50) and $6,000 ($7,000 if over 50) respectively. Consider saving as a percentage versus a dollar amount....

financial planning, Uncategorized

11/27/2020

No changes in contributions limits for employees to their employer-sponsored plans and IRAs.

10/23/2020

Dealing with personal finances can be daunting. They could be a new venture for you or your current way of dealing with them is less than ideal. Here are some tips that can aid you in developing good personal finance habits. Use technology. Whether developing a budget, savings plan, etc. the use of technology can make life easier. App such as Mint.com or spreadsheet software like Excel can assist you in getting organized and making clutter more organized. [ 305 more words ]

https://financialducksinarow.com/14241/how-to-build-good-money-habits/

10/19/2020

If the Government Pension Offset (GPO) is factored into your Social Security calculation, do you understand why?

If the Government Pension Offset (GPO) is factored into your Social Security calculation, do you understand why?

10/13/2020

WEP, or the Windfall Elimination Provision, is vexing to many folks. Why does WEP even exist? This article explains why.

WEP, or the Windfall Elimination Provision, is vexing to many folks. Why does WEP even exist? This article explains why.

09/28/2020

When the "miscellaneous" code is applied to a denied Social Security benefit, up to 41% of the time, the case is not followed-up on, per audit.

When the "miscellaneous" code is applied to a denied Social Security benefit, up to 41% of the time, the case is not followed-up on, per audit.

09/25/2020

During the lockdown and required social distancing it’s common to feel cooped up and restless. Finances may be strained, and we may feel the need to lockdown our own spending. During this time, and raising two daughters, it was a great way to become creative with activities that didn’t cost a thing but were a HUGE investment in building relationships. If you don’t have kids, you can still do these with friends or family. [ 304 more words ]

coronavirus

09/21/2020

A recent college graduate approached me recently to ask about saving and investing. He had begun investing using one of the micro-brokerage apps, and had a few questions about getting started with saving and investing. We briefly talked about saving concepts, including emergency funds, goals for saving activities and whatnot, as well as the concept of diversification. But I knew that the brief amount of time we had available to talk would not be enough to answer all of his questions. [ 1,609 more word ]

08/17/2020

A recent Private Letter Ruling (PLR) from the IRS may be of interest to IRA owners who are thinking about using IRA funds as a short-term loan. There are a couple of factors in this ruling that you need to understand if you're looking to use IRA funds for a short-term loan (hint: it's not recommended!). PLR 202033008 was issued August 14, 2020. [ 458 more words ]

A recent PLR denied a waiver of the 60-day rollover window for a taxpayer who was using an IRA withdrawal as a short-term loan.

08/14/2020

For the longest time in wealth management the recommended amount of money to have in an emergency fund has been three to six months of non-discretionary expenses (mortgage, rent, utilities, groceries). Typically, three months was the recommendation for a single individual or married couple with dual incomes. Six months was generally for married couples with one income earner. Every so often, something comes along challenging conventional wisdom, and that can be a good thing. [ 322 more words ]