Latest news with #MarkLuscombe
Yahoo
6 days ago
- Business
- Yahoo
The lowdown on inherited IRAs
Dear Liz: I inherited my mother's Roth IRA when she died in 2015 and have been taking yearly required minimum distributions based on my age. My spouse is my primary beneficiary on this inherited Roth IRA. What happens if I pass away before she does? Can she just roll it over into her existing Roth IRA, as is generally permitted for spousal IRA inheritance? Or are there additional limits imposed because it becomes a "doubly inherited" Roth IRA? Answer: The SECURE Act largely eliminated the so-called stretch IRA that allowed non-spouse beneficiaries to take distributions over their lifetimes. IRAs inherited on or after Jan. 1, 2020, must typically be drained within 10 years. That likely would be the case for your wife. Special rules allow a spouse to treat an inherited IRA as their own, but only when they inherit from the original IRA owner, says Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting. There are a few exceptions. Your wife may be able to spread the distributions over her lifetime if she is disabled or chronically ill, for example. If that's not the case, she's back to draining the account within 10 years. Many inherited IRAs require annual distributions. Since this is a Roth IRA, however, the original owner would not have been required to start distributions. Therefore, the spouse of the inherited Roth IRA beneficiary does not have a requirement to distribute annually over the 10-year period but may wait until the end of the 10-year period to do the full distribution, Luscombe says. Dear Liz: I am in my late 50s, married and woefully unprepared financially for my later years. I was a stay-at-home mom for many years. I now work almost full time but my employer has no 401(k) or profit sharing or really any benefits at all. I just started putting $8,000 (the catch-up amount) into my Roth IRA. What else can I do now to make up for lost time? Answer: You can't really make up for the decades of compounded returns you missed by not investing earlier. But you can make some smart decisions now for a more comfortable retirement. Your most important decision likely will be how you and your spouse claim Social Security. Your spouse almost certainly should wait to claim until age 70 to maximize their lifetime benefit and to lock in the highest possible survivor benefit. If you outlive your spouse, this benefit could comprise the bulk of your income. Consider reading 'Get What's Yours,' a book about Social Security claiming strategies by Laurence J. Kotlikoff and Philip Moeller. Just make sure to get the updated version that was published in 2016, since earlier versions refer to strategies that Congress eliminated. Delaying retirement is another powerful way to compensate for a late start, since you'll have more years to work and save. Consider finding an employer who will help you secure your future by providing a 401(k) with a generous match. You'll be able to contribute substantially more to a workplace retirement plan than you would to a Roth. You and your spouse should consider hiring a fee-only financial planner to review your situation and offer customized advice. Dear Liz: You recently responded to an elderly couple who planned to move into assisted living, but were concerned about capital gains taxes on the sale of their home. You suggested an installment sale or renting out the home as possible options. While not for everyone, another possibility is a home loan or a reverse mortgage to cash out tax free. Answer: Reverse mortgages have to be repaid if the borrowers die, sell or permanently move out of their homes. If one of the spouses planned to stay in the home, a reverse mortgage might work, but not if both plan to move to assisted living. A home equity loan or home equity line of credit might be options if the couple have good credit, sufficient income to make the payments and a cooperative lender. A tax pro or a fee-only financial planner could help them assess their options. Liz Weston, Certified Financial Planner®, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the "Contact" form at Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
Los Angeles Times
6 days ago
- Business
- Los Angeles Times
The lowdown on inherited IRAs
Dear Liz: I inherited my mother's Roth IRA when she died in 2015 and have been taking yearly required minimum distributions based on my age. My spouse is my primary beneficiary on this inherited Roth IRA. What happens if I pass away before she does? Can she just roll it over into her existing Roth IRA, as is generally permitted for spousal IRA inheritance? Or are there additional limits imposed because it becomes a 'doubly inherited' Roth IRA? Answer: The SECURE Act largely eliminated the so-called stretch IRA that allowed non-spouse beneficiaries to take distributions over their lifetimes. IRAs inherited on or after Jan. 1, 2020, must typically be drained within 10 years. That likely would be the case for your wife. Special rules allow a spouse to treat an inherited IRA as their own, but only when they inherit from the original IRA owner, says Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting. There are a few exceptions. Your wife may be able to spread the distributions over her lifetime if she is disabled or chronically ill, for example. If that's not the case, she's back to draining the account within 10 years. Many inherited IRAs require annual distributions. Since this is a Roth IRA, however, the original owner would not have been required to start distributions. Therefore, the spouse of the inherited Roth IRA beneficiary does not have a requirement to distribute annually over the 10-year period but may wait until the end of the 10-year period to do the full distribution, Luscombe says. Dear Liz: I am in my late 50s, married and woefully unprepared financially for my later years. I was a stay-at-home mom for many years. I now work almost full time but my employer has no 401(k) or profit sharing or really any benefits at all. I just started putting $8,000 (the catch-up amount) into my Roth IRA. What else can I do now to make up for lost time? Answer: You can't really make up for the decades of compounded returns you missed by not investing earlier. But you can make some smart decisions now for a more comfortable retirement. Your most important decision likely will be how you and your spouse claim Social Security. Your spouse almost certainly should wait to claim until age 70 to maximize their lifetime benefit and to lock in the highest possible survivor benefit. If you outlive your spouse, this benefit could comprise the bulk of your income. Consider reading 'Get What's Yours,' a book about Social Security claiming strategies by Laurence J. Kotlikoff and Philip Moeller. Just make sure to get the updated version that was published in 2016, since earlier versions refer to strategies that Congress eliminated. Delaying retirement is another powerful way to compensate for a late start, since you'll have more years to work and save. Consider finding an employer who will help you secure your future by providing a 401(k) with a generous match. You'll be able to contribute substantially more to a workplace retirement plan than you would to a Roth. You and your spouse should consider hiring a fee-only financial planner to review your situation and offer customized advice. Dear Liz: You recently responded to an elderly couple who planned to move into assisted living, but were concerned about capital gains taxes on the sale of their home. You suggested an installment sale or renting out the home as possible options. While not for everyone, another possibility is a home loan or a reverse mortgage to cash out tax free. Answer: Reverse mortgages have to be repaid if the borrowers die, sell or permanently move out of their homes. If one of the spouses planned to stay in the home, a reverse mortgage might work, but not if both plan to move to assisted living. A home equity loan or home equity line of credit might be options if the couple have good credit, sufficient income to make the payments and a cooperative lender. A tax pro or a fee-only financial planner could help them assess their options. Liz Weston, Certified Financial Planner®, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the 'Contact' form at
Yahoo
12-05-2025
- Business
- Yahoo
Sydbank share buyback programme: transactions in week 19
Company Announcement No 22/2025 Peberlyk 46200 AabenraaDenmarkTel +45 74 37 37 37Fax +45 74 37 35 36Sydbank A/SCVR No DK 12626509, 12 May 2025 Dear Sirs Sydbank share buyback programme: transactions in week 19On 26 February 2025 Sydbank announced a share buyback programme of DKK 1,350m. The share buyback programme commenced on 3 March 2025 and will be completed by 31 January 2026. The purpose of the share buyback programme is to reduce the share capital of Sydbank and the programme is executed in compliance with the provisions of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 and Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016, collectively referred to as the Safe Harbour rules. The following transactions have been made under the share buyback programme: Number of shares VWAP Gross value (DKK) Accumulated, most recent Announcement 696,000 289,031,550.00 05 May 202506 May 202507 May 202508 May 202509 May 2025 12,00013,00013,00014,00014,000 433.74428.47422.12421.07417.79 5,204,880.005,570,110.005,487,560.005,894,980.005,849,060.00 Total over week 19 66,000 28,006,590.00 Total accumulated during theshare buyback programme 762,000 317,038,140.00 All transactions were made under ISIN DK 0010311471 and effected by Danske Bank A/S on behalf of Sydbank A/S. Further information about the transactions, cf Article 5 of Regulation (EU) No 596/2014 of the European Parliament and of the Council on market abuse and Commission delegated regulation, is available in the the above transactions, Sydbank A/S holds a total of 760,964 own shares, equal to 1,48% of the Bank's share capital. Sydbank A/S had at its disposal, through direct and indirect holdings, 768,839 shares in Sydbank A/S, representing 1.51% of the total share capital of Sydbank A/ sincerely Mark Luscombe Jørn Adam MøllerCEO Deputy Group Chief Executive Attachment SM 22 UK incl. encError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-04-2025
- Business
- Yahoo
3 Steps To Take If Your Child Tax Credit Claim Was Denied, According to Experts
If a Child Tax Credit claim was denied but should have been approved, there are clear steps to challenge the decision. Find Out: Try This: The Child Tax Credit provides up to $2,000 per qualifying child under 17 to help families manage the cost of raising children. Experts say a denial may stem from issues like missing documentation or eligibility errors. Here are three steps to take if a Child Tax Credit claim is denied, according to the experts. Next, learn which states offer child tax credits. Misunderstandings about eligibility for the Child Tax Credit are one of the most common reasons the IRS denies claims. For example, the taxpayer may earn too much to meet IRS eligibility requirements. 'The credit starts to phase out at the modified adjusted gross income of $200,000 for single filers and $400,000 for joint filers,' said Mark Luscombe, principal analyst for Wolters Kluwer's Tax and Accounting Division North America. Experts also note that custody issues resulting from a divorce can affect eligibility. For example, the taxpayer may not have provided child support, or the child didn't live with them for at least half the year. 'It's not just about who gets to claim the child — it's about understanding the IRS rules, filing status and potential red flags that could trigger a denial,' said Melissa Murphy Pavone, CDFA and founder of Mindful Divorce Partners, a firm that specializes in divorce financial planning. 'If a Child Tax Credit claim is denied, it's often because both parents tried to claim the same child or the claiming parent doesn't meet the IRS requirements,' Pavone added. Be Aware: Before appealing the IRS decision, identify the specific issue. The IRS typically sends a notice explaining why a claim was denied. 'It may be that the taxpayer was not entitled to the credit, or it may be that an error was made that can be corrected,' Luscombe said. Missing or incorrect information can also trigger a denial. 'The taxpayer may have failed to obtain a Social Security number [for a newborn child] by the time the tax return is filed,' Luscombe explained. 'Or the Social Security name on file with the Social Security Administration does not match the Social Security number on the tax return.' Sometimes, the denial is related to offsets from other debts. 'The credit was, in fact, allowed, but not paid due to the refund being offset by federal tax debts, state income tax, child support obligations or defaulted student loans,' Luscombe said. Taxpayers can try to reverse the IRS's decision by filing Form 8862, 'Information to Claim Certain Credits After Disallowance.' 'Depending on the reason for denial, the supporting documents should establish entitlement to the credit: evidence of the age of the child, support status, living status, any custodial agreements between the parents or a correct Social Security number,' Luscombe said. He said taxpayers should work with a tax professional who understands the rules for claiming the credit. 'In a divorce situation, the co-parents can agree in a settlement or divorce agreement who is entitled to claim the credit, as long as the greater-than-one-half-of-the-year residency requirement is met by the claiming co-parent,' Luscombe said. More From GoBankingRates6 Reasons Your Tax Refund Will Be Higher in 2025 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 5 Types of Vehicles Retirees Should Stay Away From Buying This article originally appeared on 3 Steps To Take If Your Child Tax Credit Claim Was Denied, According to Experts Sign in to access your portfolio
Yahoo
10-03-2025
- Business
- Yahoo
How to handle cash savings of deceased parents
Dear Liz: My mother passed away a little over a year ago, and my father about 18 months prior to her. I discovered that my parents saved up quite a lot of cash (in the six figures), and I'm afraid to deposit it without triggering the IRS. My parents routinely saved anywhere from $5,000 to up to $20,000 per year for the last 30 years. I read my mom's handwriting on the envelopes with the dates. How can I deposit all this without triggering the IRS? Some of the bills are 'vintage' so I will keep them to see if they're worth more than face value. I also thought about using it to buy real estate. Answer: You mention 'triggering the IRS' as if your deposit might set off an explosion of audit notices and tax liens. In reality, you're far more likely to cause yourself grief by trying to avoid IRS notice than you are by simply depositing the money. Banks report large cash deposits — typically those of $10,000 or more — to the IRS as a way to combat money laundering. Anti-money-laundering rules also have been extended to real estate deals. Banks are looking for smaller deposits that could add up to more than $10,000, so don't think spreading out the deposits will help you avoid scrutiny. 'Depositing the money all at once would probably arouse less suspicion with the bank than making a continuing series of deposits just under $10,000,' says Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting. Luscombe suggests retaining all those envelopes with your mother's handwriting. If you are questioned by your bank or the IRS, the envelopes could help show your parents were gradually saving the money over time rather than engaging in some money-raising scheme on which taxes were never paid. You didn't mention if your parents had wills or other estate documents, or if there are other beneficiaries. Consult with an estate planning attorney to see if the cash needs to be deposited in the name of your mother's estate. Jennifer Sawday, an estate planning attorney in Long Beach, Calif., recommends going in person to your bank to ask for an appointment to make a large cash deposit. Ideally, you can discuss the situation and disclose the source of the funds in a private office, where you can't be overheard. Ask if the bank can hire an armored courier to pick you up at your home to reduce the chance you'll be robbed en route, Sawday suggests. Please don't delay, since theft isn't the only concern. Cash also can be lost to fire, floods and other disasters. (One can only imagine how many bank-averse people lost cash in the recent Los Angeles fires.) Plus, cash tends to lose value over time thanks to inflation–the vast majority of 'vintage' bills are worth much less than when they were printed. You'll want to at least start earning some interest on the money, and perhaps put it to work in other investments. Dear Liz: Your recent column on the divorced couple where the ex-wife can apply for Social Security benefits has me wondering about my own benefits. I'm 60 and my husband is 79. Can I get his Social Security benefits, and if so, when should I apply? I am working and have worked all my adult life. He has an ex and was married to her for 11 years, so she is getting his and he is getting his. Do I qualify for his and also my own? Answer: To repeat, Social Security is typically 'either/or,' not 'both.' When you apply for Social Security, your own retirement benefit will be compared with a spousal benefit based on your husband's earnings record. You'll get the larger of the two benefits. The spousal benefit can be up to 50% of your husband's benefit at his full retirement age, not the amount he's currently getting. You can apply as early as age 62, but that means accepting a permanently reduced benefit. Also, early benefits will be subject to the earnings test, which withholds $1 for every $2 earned over a certain limit, which in 2025 is $23,400. You won't face the earnings test if you apply after reaching your full retirement age, which is 67. If you delay filing, your own benefit will continue to grow. It maxes out at age 70. Figuring out the best time to apply can be complicated. AARP has a free calculator that may help, or you can use the more sophisticated paid versions at Maximize My Social Security. Liz Weston, Certified Financial Planner®, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the "Contact" form at Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times. Sign in to access your portfolio
