If you have money saved in a Traditional IRA or an old 401(k), you’ve probably heard of something called a Required Minimum Distribution, or RMD. While many people know they have to take money out eventually, there is much more to understand. Making smart decisions about your RMDs can help lower taxes, support your retirement goals, and even leave more money for your family.
For decades, the traditional retirement age has hovered around 65, and the IRS generally imposes a 10% penalty on withdrawals from tax-advantaged retirement accounts before age 59½. However, many Americans are choosing to leave the workforce much earlier—whether at age 55, 50, or even younger. Fortunately, the tax code provides several legal ways to access retirement savings before age 59½ without paying the early withdrawal penalty. Two of the most valuable strategies are the 72(t) Substantially Equal Periodic Payment (SEPP) rule and the Rule of 55.
For many Americans approaching or living in retirement, cash has become attractive again. After spending years earning little to nothing on savings accounts and money market funds, retirees suddenly found themselves able to earn yields exceeding 5% on many cash investments following the Federal Reserve’s interest rate increases that began in 2022.¹ ² ⁶
Long-term capital gains are more tax-efficient than ordinary income—right? We’ve all sat around the Thanksgiving dinner table and heard this from our finance-savvy cousin. For decades, investors have been conditioned to chase that preferential federal tax rate (0%, 15%, or 20%), treating any transition from a paycheck to a stock sale as an automatic victory. But if you are a married couple filing jointly in New Jersey, that conventional wisdom is incomplete—and often unnecessarily expensive.
Social Security is heading toward a financial crossroads—and under current projections, it is not sustainable as it stands. According to the latest Trustees Report from the Social Security Administration, the program’s trust funds are expected to be depleted around 2035, at which point incoming payroll taxes would only be sufficient to cover roughly 75–80% of promised benefits. That doesn’t mean Social Security disappears, but it does mean automatic benefit cuts unless Congress intervenes.
New Hampshire, affectionately known as the “Granite State,” has quietly pulled off a sun-soaked Florida-level tax miracle, minus the palm trees and humidity. While Floridians boast about their endless white sandy beaches, New Hampshire counters with its own shimmering white ski slopes, cozy mountain towns, and now, a tax environment giving traditional retirement states a surprising run for their money. As of January 1, 2025, the state officially eliminated its Interest & Dividends (I&D) Tax, cementing its status as one of the most attractive tax havens in the Northeast, with no sunscreen required.
For many Americans approaching retirement, the 401(k) catch-up provision was one of the most practical and meaningful planning tools available. It was designed to help workers age 50 and older who, due to family obligations, housing costs, healthcare expenses, or career disruptions, were unable to fully maximize retirement savings earlier in life. By allowing additional contributions on a pre-tax basis, the rule helped late-career earners save more and reduce taxable income during what are often their highest earning years. With a new portion of the SECURE 2.0 Act taking effect this year, that lifeline was just ripped away.
The start of a new year is a natural time to reflect, reset, and recommit to goals that matter most, especially about your financial future. Many people resolve to save more or get serious about planning, but good intentions alone will not move the needle. Turning New Year’s resolutions into real retirement progress requires a clear plan and deliberate action.
Veterans deserve the retirement they’ve been dreaming about. Our guide explores the resources available to maximize benefits and help ensure a smooth and well-supported transition into retirement.
Veterans deserve the retirement they’ve been dreaming about. Our guide explores the resources available to maximize benefits and help ensure a smooth and well-supported transition into retirement.
