BY DAVID L. CUMMING<\/p>\n
The typical American family reflected in
\niconic television shows of the 1950s and 1960s,
\nin which the husband went off to work each
\nmorning and the wife happily played out the
\nrole of homemaker, is firmly in the minority.<\/p>\n
By 2012, the Bureau of Labor Statistics reported
\nthat six in 10 families with children have
\ntwo working parents. What’s more, the majority
\nof Americans feel they need dual incomes in
\norder to reach their financial goals.<\/p>\n
For a major goal like retirement, working
\ncouples need to be especially vigilant to coordinate
\ntheir planning efforts in a way that
\nsupports their combined accumulation objectives.
\nAs you and your spouse execute your joint
\nretirement strategy, keep some of the following
\ntips in mind.<\/p>\n
In 2015, you and your spouse can each You also may be able to deduct all or a portion If you both are covered by an employer-sponsored Similarly, if one spouse is covered by an Coordinating Multiple Accounts<\/strong><\/p>\n Like any investment portfolio, retirement Because of the range of investment options Is your overall asset allocation in line with Are the portfolios adequately diversified?<\/p>\n Are they overweighted (or under weighted) Do the portfolios complement your other Consider the fees associated with your retirement Retirement Distributions<\/strong><\/p>\n Couples nearing retirement need to decide Tapping taxable and tax-deferred accounts. Converting a traditional IRA to a Roth IRA, If one or both spouses are covered by a A single life or joint life annuity – Typically A lump-sum payment – Typically an option Social Security<\/strong><\/p>\n You can begin receiving Social Security Determining when and how to claim Social Cumming, CFP, RICP, CRPS, is a senior vice BY DAVID L. CUMMING The typical American family reflected in iconic television shows of the 1950s and 1960s, in which the husband went off to work each morning and the wife happily played out the role of homemaker, is firmly…<\/p>\n","protected":false},"author":121,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[58],"class_list":["post-18399","post","type-post","status-publish","format-standard","hentry","category-business-reports","tag-business-reports"],"yoast_head":"\r\n
\nIRA Contributions and Deductibility<\/strong><\/p>\n
\ncontribute $5,500 to a traditional or a Roth individual
\nretirement account (IRA), if you have
\nsufficient taxable compensation (or earned
\nincome from self-employment). If you are age
\n50 or older, you can direct an additional $1,000
\nto your IRAs for a combined total of $13,000.
\nYour eligibility to contribute to a Roth IRA is
\ndependent on your filing status and modified
\nadjusted gross income for the year.<\/p>\n
\nof your traditional IRA contributions if
\nyou satisfy Internal Revenue Service guidelines.
\nFor example, if you file a joint tax return, and
\nneither spouse is covered by an employer-sponsored
\nretirement plan, traditional IRA
\ncontributions are generally fully deductible up
\nto the annual contribution limit.<\/p>\n
\nretirement plan, traditional IRA
\ncontributions will be fully deductible if your
\ncombined adjusted gross income (AGI) is
\n$98,000 or less. The amount you can deduct
\nbegins to phase out if the combined AGI is between
\n$98,000 and $118,000, and no deduction
\nis allowed if it is equal to or exceeds $118,000.<\/p>\n
\nemployer-sponsored retirement plan and the
\nspouses file a joint federal income tax return,
\nthe spouse who is not covered by an employer
\nsponsored retirement plan may qualify for a
\nfull traditional IRA deduction if the combined
\nAGI is $183,000 or less. Deductibility phases
\nout for combined incomes of between $183,000
\nand $193,000, and is eliminated if your AGI
\non a joint return equals or exceeds $193,000.
\nNote, however, Roth IRA contributions are not
\nincome tax deductible.<\/p>\n
\naccounts should work in unison to help you
\npursue a specific accumulation goal. However,
\nwith job changes so prevalent, it is likely that a
\ncouple may have multiple retirement accounts,
\nincluding 401(k), 403(b), or 457 plans, rollover
\nIRAs and possibly defined benefit plans.<\/p>\n
\noffered under such plans, it is important to
\nkeep the big picture in mind in order to maintain
\na coordinated investment strategy. As
\nyou review your accounts, ask the following
\nquestions:<\/p>\n
\nyour objectives and risk tolerance?<\/p>\n
\nin any one asset class or individual security?<\/p>\n
\ninvestments (e.g., taxable investment accounts,
\nreal estate and other assets)?<\/p>\n
\naccounts and how they might affect
\nreturns. Would it make sense to consolidate
\nsome accounts to help minimize these costs?<\/p>\n
\nthe timing of retirement account distributions
\nin light of their income needs, tax situation
\nand market dynamics. Among the issues to
\nconsider are:<\/p>\n
\nConventional wisdom suggests that tapping
\ntaxable accounts first enables your tax-deferred
\naccounts to continue compounding longer–
\nand potentially growing larger–over time.
\nHowever, there are also those who argue that
\nwaiting longer to tap tax-deferred accounts
\ncould result in larger required minimum
\ndistributions.<\/p>\n
\nallowing you to put off distributions as long as
\npossible and\/or receive tax-free income.<\/p>\n
\ndefined contribution (DC) and\/or a defined
\nbenefit (DB) pension plan, you will typically
\nbe given several pay-out options to consider.
\nThese may include:<\/p>\n
\nthe distribution method of choice for DB plans,
\na single life option, pays out a fixed benefit for
\nyour lifetime; the joint life option continues
\npaying some portion of the benefit upon death
\nto another party, typically the surviving spouse.
\nDC plans may also offer the option to annuitize,
\nconvert all or a portion of the account balance
\nto a guaranteed stream of income for life.<\/p>\n
\nfor both DB and DC plans, in which the full
\nvalue of the account is paid out upon retirement.
\nIt is up to you to then decide whether
\nand how to reinvest the proceeds.<\/p>\n
\npayments as early as 62, although delaying the
\nelection increases the monthly total. Married
\ncouples may want to consider first tapping one
\nspouse’s benefit and delaying the other one’s
\nuntil age 70, which maximizes the income and
\nmay substantially increase the couple’s total
\nSocial Security payout over a lifetime.<\/p>\n
\nSecurity benefits is a complex matter involving
\nmany variables. Please contact me for
\nassistance in considering the particulars of
\nyour situation as you and your spouse plan for
\nretirement.<\/p>\n
\npresident, financial advisor and executive financial
\nservices director with Morgan Stanley.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"