Takeaways Estate planning is essential for stepfamilies and blended families to prevent accidental and sometimes, intentional disinheritance of children from prior relationships and to reduce family conflict. Tools like wills, trusts, and updated beneficiary designations are crucial for ensuring the surviving spouse and children from all relationships are provided for according to the parents’ wishes. Many couples enter
Takeaways Starting in 2026, employees aged 50 and older who earn over $145,000 must make 401(k) catch-up contributions on an after-tax (Roth) basis, losing the immediate pretax deduction. Affected high earners should check if their employer offers a Roth 401(k) option and review their overall retirement and tax strategy to maximize savings despite the rule
The Internal Revenue Service (IRS) has released its tax inflation adjustment figures for tax year 2025. Annual Gift Tax Exclusion Effective January 1, 2025, you will be able to make individual gifts of up to $19,000 in the calendar year (an increase from $18,000 in 2024) tax-free. In other words, giving more than $19,000 to
Did you ever wonder what happens to most inheritances after they are received? An Ohio State University study determined that those who receive an inheritance spend half. One-third of those who received an inheritance spend it all within two years and end up with negative savings. Unfortunately, a typical inheritance does not provide sustained financial
