Retirees: Fall Tax Deadlines Are Here!

We think of taxes when April 15th approaches, but retirees need to be aware of several important tax deadlines that are now looming in the next few weeks. In the most recent AARP blog, Taxpayers and Retirees: Heed These Deadlines To Avoid Pitfalls, Carole Fleck has alerted us to the crucial IRS mandates that occur in September, October, and December.

retiree tax planning

Do not miss the deadlines!

The rules cover situations of inherited IRAs, Roth IRA conversions, extended tax filing, and retirement account Required Minimum Distributions (for those at least 70½ years). Ms. Fleck not only alerts us to the impending deadlines and the background of each topic, she also provides some tips on to how manage each topic, while doing it in a very readable style.

While articles like this are certainly not a substitute for competent professional financial management advice, this is definitely a fine resource for understanding some of the financial issues that, should they be overlooked, would incur a serious penalty from our friends at the IRS. Do not miss this short but timely article!

Long-term Care… Affordable?

An additional fall-out from our now-four-year economic (fill-in: downturn, recession, depression, recovery?) is the affordability of long-term care (LTC) insurance. Christine Benz, who writes for Morningstar and is their director of personal finance, has penned a helpful article (Do You Have a Viable Plan for Long-Term Care?) on the causes, fallout, and possible actions to take.

As she points out, the issue is that while health care cost has been steadily increasing, now the cost of LTC insurance has sky-rocketed. The basic reason for the increase in policy premiums is that several insurance companies can no longer write profitable policies, long-term careprimarily due to minuscule interest rates.

Like the insurance companies, more consumers are financially forced out of the LTC insurance market; many opt to self-insure, i.e., forgo insurance. Ms. Benz discusses how Medicare and Medicaid cover LTC. Unfortunately the answer is ‘not as much as one might have thought’! As with any government program, there are stipulations and regulations with which to be knowledgeable and comply, and she discusses these in reasonable detail yet in a way that most consumers can understand.

Not surprisingly, it is smart to know the issues and possibilities before one needs to take action. This article is a great primer on the subject of LTC financing.