How Required Minimum Distributions Work

Tax-deferred growth is a key feature of retirement accounts — traditional IRAs, SEP-IRAs, SIMPLE IRAS, SARSEP IRAs, Roth IRAs, 401(k)s and the like. But, with the exception of distributions from a Roth IRA, you can’t defer income taxes forever. In fact, upon reaching age 72, the IRS requires that you start withdrawing as ordinary income a portion of the money in your retirement accounts each year and pay taxes on it. (The start date for your first required minimum distribution or RMD was age 70½ before the passing of the SECURE Act in December 2019.) When do you need to know about

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2020 Arizona Tax Credit Limits

The Arizona State Tax Credit program allows you to make a donation to an eligible organization and receive a dollar-for-dollar credit against Arizona state taxes owed. Donating to tax credit eligible organizations will most likely leave you in a tax neutral situation – meaning you’ll pay about the same total amount whether you use the tax credits or just pay the tax. But by donating you get a say in how the money is spent by choosing which of the tax credit eligible organizations you contribute to. You can contribute up to the amount of your expected Arizona tax liability. If you

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How to Build a Retirement Portfolio That Will Stand Up Over Time

When working and saving, typically you invest your retirement portfolio in a way that gives it the potential to earn the highest returns possible while planning to ride out any big market downturns. Once retired, the goal changes. A different goal means a different portfolio. A retirement portfolio needs to produce reliable cash flows that last the rest of your life regardless of the variety of market conditions that occur over your retirement years. In other words, you need a retirement portfolio that remains standing under all conditions. There are four primary ways you can construct such portfolios. 1. Total Return With a total return

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