3 Things Other Than Taxes to Consider for 2015

With tax issues already swirling, don’t lose sight of other planning techniques that may affect you in 2015. As you recap on the prior year and look forward to 2015, consider if you have been, or will be affected by any of the following:

  1. I still get great job satisfactionIn Service Rollover Opportunities

If you are at least 59 ½ and still employed, you may be able to complete an in-service rollover of the assets in your 401(k) to an IRA.  Many employer plans allow in-service rollovers for their employees.  If you are unhappy with the investment choices your 401(k) offers or would just like to have these assets within your direct control, this may be an option within your employer plan.

Because you are still employed, your 401(k) plan will remain active following the transfer and will still be able to accept your continuing deferrals and employer matches.  It simply allows for a transfer of what is already in the 401(k) (subject to employer restrictions) to transfer to a Rollover IRA that can then be invested as you or your Financial Advisor choose.

  1. Inherited Assets

If you experienced a death in the family during 2014 and inherited an IRA/Roth IRA as a result, you will be required to begin taking distributions from that inherited IRA during 2015.  Spouses who inherit have special rules and exceptions which apply, but for all other inheritors, distributions begin in the year following the year of death.  The guidelines for distributions are different than those for regular Required Minimum Distributions taken once age 70 ½, so it is important you consult your Financial Advisor or Tax professional to ensure you take the appropriate amount each year.

  1. Bonus Income

If you received a bonus in 2014, or will receive one in early 2015, plan now to maximize the impact those additional dollars have on your financial situation.  It is critical that a “bonus” is treated as extra and does not become the way you play catch-up for the excessive spending you did during the year which exceeded your regular income.  In order to appropriately plan for your secure future, you need to find ways to live within your regular salary, so that your bonus really does make a positive impact.

If your net bonus is already sitting in your checking account, move it to a less accessible account, so it doesn’t get eaten away by mindless spending.  Be purposeful with those extra dollars and seek to look forward and plan out the highest use of those additional dollars.

Plan to make 2015 prosperous by thinking ahead and taking control of your finances. If you have been navigating these, or other financial issues that you would like guidance on, contact us to see how we can help.