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Chornyak & Associates

614.888.2121  •  877.389.2121   •  Chornyak.com

February 2020

New IRA withdrawal rules present opportunities for some, but could create bigger tax bills if not handled properly. Our lead story reviews options that may be considered in 2020.
If you are thinking of retiring within the next 10 years, you will want to read our second article which describes 3 key steps you should consider first.

This month's "What's Happening Now" section shares interesting stories on concerns some are having regarding tax rules surrounding the new Secure Act, the San Francisco Giants hiring MLB's first female coach, and how a young boy asked his dad to help the homeless.

We'd like to hear from you. Please feel free to contact us by phone at 614-888-2121, toll-free 877-389-2121 or e-mail chornyak@chornyak.com with any questions or comments.  Or, follow this link to request a meeting with us to discuss your financial planning needs: https://www.chornyak.com/appointment-request 

Sincerely, Joe
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This mistake around new IRA withdrawal rules could leave you with a bigger tax bill

Lawmakers have diluted a retirement tax break popular among wealthy Americans, leading many to consider a strategy known as a Roth conversion for individual retirement accounts to try softening the blow.

A Roth conversion involves the owner of a traditional IRA, which is funded with pretax contributions, moving that money into an after-tax Roth IRA. Account holders must pay the associated income tax on the balance converted but benefit from tax-free withdrawals later.

The move could save families tax money over the long run, given new rules around some IRA withdrawals, according to financial experts. Yet taxpayers could inadvertently overdo it and hurt their finances in the long term, they warn.

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Ready to Retire?
Not Until You Have Done These 3 Things

One of the biggest threats to your financial security isn’t the markets, interest rates or even your job security. It’s a lack of preparation, particularly for unexpected events, that usually leaves investors reeling when markets swoon. If you haven’t protected yourself from the potential downsides in life, after all, then it’s difficult to maneuver when the unforeseen strikes.

Some recent numbers from the Employee Benefit Research Institute’s Retirement Confidence Survey showcase this lack of preparation in action during retirement planning. According to the annual survey, 66% of those 55 years and older said they were confident that they had enough money to live comfortably throughout retirement. But 48% within the same age group have not calculated their retirement needs.

Understanding where you stand now and knowing what you’ll need and want in retirement are vital to protect your portfolio throughout your post-work life. If you plan on retiring at 65, then age 55 is when you will want to begin making some important decisions.

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What's Happening Now

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Some retirees feeling less secure about tax rule changes in SECURE Act A first for MLB
baseball: SF Giants
hire female coach
A boy asked his dad
to help the homeless

Market Update

Coronavirus outbreak leads to mixed results for markets
January was a mixed month for markets, with concerns about the spread of the Wuhan coronavirus having a negative effect at month-end. Despite spending most of the month in positive territory, both the S&P 500 and the Dow Jones Industrial Average declined. The former fell 0.04 percent while the latter dropped 0.89 percent. The Nasdaq Composite also saw some late-month volatility, but previous gains were strong enough to leave the index up 2.03 percent for the month.
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