Latest news with #USHouseholds
Yahoo
06-07-2025
- Business
- Yahoo
Annual IRA audit: How to catch the costliest retirement account mistakes
Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. When it comes to individual retirement accounts (IRAs), the opportunities for errors are seemingly endless — and costly. With roughly 58 million US households owning IRAs, even one misstep with rollovers, account types, or required distributions could result in unexpected taxes or penalties. To help prevent that, retirement expert Denise Appleby, CEO of Appleby Retirement Consulting, shared common pitfalls and real-life examples on a recent episode of Decoding Retirement. Questo contenuto incorporato non è disponibile nella tua area geografica. Among the most frequent and overlooked mistakes? Ignoring IRS Form 5498, officially titled "IRA Contribution Information." This form reports IRA activity such as contributions, rollovers, conversions, fair market value (FMV), and required minimum distributions (RMDs). The form is so often overlooked because, in 2024, for instance, custodians weren't required to issue it until May 31 — well after most people file their returns. "So you have already done your tax return, you get this form and you're thinking, 'I'll just file it away because my accountant doesn't need it,'" Appleby said. "But you need it — and maybe you should share it with your accountant." Read more: What is a financial adviser, and what do they do? In one case Appleby highlighted, a woman opened what she believed was a traditional IRA. Years later, after a name change and a custodian update, the word "Roth" was removed from the account title, even though the account remained a Roth IRA. Assuming it was a traditional IRA, she made deductible contributions and even rolled over a 401(k) into it, thinking the rollover was tax-free. "Turned out that it was taxable because she processed a Roth conversion without knowing it," Appleby said. The resulting tax liability? Possibly up to $1 million. The mistake could have been caught earlier had she reviewed Box 7 of Form 5498, which identifies the account type (Traditional, SEP, SIMPLE, Roth). To avoid similar issues, Appleby suggested that every IRA owner conduct a yearly self-audit. With Form 5498, confirm your account type (Traditional, SEP, SIMPLE, Roth) in Box 7 and check your rollover contributions (Box 2) for accuracy. Form 1099-R lists distributions, which you'll also want to review. "If you took a distribution," Appleby said, "is it coming from the correct type of account? Is it reported as a direct rollover when it should be?" If you're 73 or older, you're required to take a required minimum distribution each year. RMDs are based on your account balance and IRS life expectancy tables. While the formula is straightforward, using the wrong table or a misstated balance can cause errors. And you are responsible for the accuracy — even if the custodian made the mistake. "If you took out a million dollars in December and rolled it over in January," Appleby said, "your custodian won't have that on record — and your RMD will be understated." To make sure your RMD is correct, you will need to refigure the amount by adding back the million dollars to your year-end fair market value. You can delay your first RMD until April 1 of the following year — but doing so means you'll need to take two distributions that year, potentially bumping you into a higher tax bracket. "Talk with your CPA about whether it makes sense to split the income across two years or take both RMDs in the same year," Appleby advised. If you fail to take an RMD, you could face a 25% excise tax. But there's good news: If you take the RMD during a correction window, the penalty drops to 10%. And in many cases, the IRS will waive the penalty altogether if the missed RMD was due to reasonable error. To request a waiver, file IRS Form 5329 and attach a letter explaining what went wrong. "They've never denied a request that I consulted on when the reason is reasonable," Appleby said. "Tell the IRS how much you took, how much you didn't take, and ask for a waiver. You attach a nice letter ... and you send it in." Even multiyear errors can be forgiven: Appleby said she's worked on cases where the IRS approved requests for cases with 10, 15, and even 18 years of missed RMDs. Appleby warned that when the IRS denies a request, it's typically because the form was filled out incorrectly, as many CPAs are tripped up by Form 5329's language. "In the spot where it says how much do you owe, you put zero," she said. "If you put any other amount, the IRS will take that as your acknowledgment that you owe them and come after you for that money." Rolling over a 401(k) to an IRA is common but still fraught with pitfalls. "Here's the No. 1 mistake that I see happening," Appleby said. "You tell your custodian, 'Do a direct rollover to my IRA' — and the account turns out to be a Roth IRA instead of a Traditional IRA. So here you have an unintentional Roth conversion." Always verify the destination account type before initiating a transfer. Also, check your 401(k) for after-tax contributions or employer securities — both of which can offer strategic planning opportunities if handled properly. Read more: What is a 401(k)? A guide to the rules and how it works. Many rollovers from retirement accounts must be completed within 60 days to avoid taxation. But if you miss that deadline, you may still have options. "Usually, you do a rollover because you want to have the amount excluded from income," Appleby said. If the error was due to something beyond your control, you can use the self-certification process — a no-fee, do-it-yourself fix — as long as you meet the requirements. The key: Act within 30 days of when the circumstance (e.g., illness, disaster) ends, and don't have a prior denied IRS waiver on record. Got questions about retirement? Email Robert Powell at yfpodcast@ and we'll do our best to answer it in a future episode of Decoding Retirement. Each Tuesday, retirement expert and financial educator Robert Powell gives you the tools to plan for your future on Decoding Retirement. You can find more episodes on our video hub or watch on your preferred streaming service. Sign up for the Mind Your Money newsletter Effettua l'accesso per consultare il tuo portafoglio
CNET
06-07-2025
- CNET
After Testing, I Found the 4 Best Ways to Get Home Security Without Wi-Fi
Home security technology has never been more popular, with 94 million US households adopting security devices like alarms or video doorbells in the past year. But there's a small catch -- most of these security systems and cameras rely on your own Wi-Fi connection to work. That can be frustrating for people who have Wi-fi that disconnects a lot, or who would rather not connect everything to Wi-Fi for privacy or safety reasons. The good news is that I've come across quite a few ways to adopt advanced security devices without using Wi-Fi at all. Let me explain what I mean, what your options are, and the benefits of these various approaches. Can home security systems work without Wi-Fi? Yes. Many home security systems don't need Wi-Fi to work. However, you may be giving up certain features in return for this flexibility. In other cases, add-ons help normally router-dependent home security function even if your Wi-Fi dies, like in a power blackout. Google Are home security systems more vulnerable on Wi-Fi? Hacking home security systems is very rare and is typically only done by acquaintances who already had access to the system. But with poor security habits your wireless network can be vulnerable to hacking. Always enable the highest level of encryption your home devices can support, and create a robust password for your Wi-Fi login. You'll also have to decide whether you want your home security devices online at all. Connecting to the internet in any form can increase certain risks, like getting your info stolen in a large-scale database theft. But it also brings many benefits, including remote monitoring and cloud video storage. How do I know if my security devices can work without a wireless network? Below, we'll cover the best options for security system without Wi-Fi . But looking for cellular, PoE (power over Ethernet) and offline features is the best way to ensure your system doesn't need Wi-Fi, or can keep going if your router goes down. Do home security systems without Wi-Fi cost more? Sometimes, but they can also cost less -- it depends on the type of system you get. An offline camera system is likely to cost less. Cellular backup support will usually cost more. The best home security without Wi-Fi Quit relying on Wi-Fi for your home security management with several effective answers... Option 1: Cellular backup for security systems Arlo's new Security Tag and keypad. Arlo If you want (or already have) a traditional home security system with important features like app alerts and remote live views or controls, your best option is to equip your system with a cellular backup. These backups can replace Wi-Fi with a cell signal, and work in tandem with built-in hub batteries (another common inclusion in modern systems) to keep systems running even when the power is out. The trick is that cellular backups aren't free. In some cases, you'll need to purchase an extra device, like this cellular and battery backup from Arlo ($80). In other cases, your security hub already has the capability. But you'll always have to pay a subscription fee for the service, and cellular support isn't always cheap. Arlo, for example, requires a professional monitoring subscription to get cell and battery backup, which only kicks in at the Premium plan, currently around $20 per month. Ring Alarm starts cellular backup at its Standard plan for compatible systems, which costs $10 per month. Expect similar fees like these to enable cellular backup for essentially any security system. Option 2: PoE (power over Ethernet) devices Reolink's affordable PoE cam is a great budget pick if you have cable options. Reolink PoE systems use a single cable connection to supply both power and an internet connection to a device such as a security camera. That makes them ideal for outdoor cams that are far away from Wi-Fi or that need more reliability. It won't help solve blackout problems, but otherwise it's a hands-off cam that doesn't require battery charging and still provides all the online benefits you want. Reolink stands above most home security brands as one of the best choices for PoE cameras. It offers many options, but one of our favorites is the Reolink 4K RLC-810A outdoor camera . It's a high-res cam that's affordable; has object recognition and long-distance night vision; some smart home support; and is entirely subscription-free when you add a microSD card. Option 3: Closed network NVR system Lorex is an excellent choice for NVR systems that avoid Wi-Fi or stay offline altogether for your privacy. Lorex/CNET Homeowners also have the option to ditch the internet completely with an offline NVR or network video recorder, a favorite option for people who want to keep their home security away from the web, the cloud and any wireless signals entirely. The NVR is connected to a display where it can show multiple feeds at the same time, just like how a security guard monitors cameras in a store. Brands like Lorex or Swann sell a variety of Ethernet cables and shielding to security buyers, and security kits will often come with cables for these kinds of NVR systems. You may also be able to choose an analog setup with a BNC cable, or a wireless setup that skips the router and connects to a compatible home hub (Lorex offers both these options, as well as the ability to turn its more advanced Home Security Center offline). However, an offline NVR setup like this will put your security system back decades. You'll miss out on the most advanced features, including checking live views from a distance on your phone. We recommend staying online if possible: Consider a wired connection that still connects the NVR to the internet for the best of both worlds. Option 4: A noncellular trail cam Trail cams are a rough and ready option if you want to keep watch on a spot without relying on the internet. Founissa/CNET Does managing cables annoy you? You have a final security option that ignores Wi-Fi and can work anywhere, wire-free. These are the same trail cams that capture inquisitive wildlife out in remote areas where cell connections aren't reliable. Trail cams like this model for $80 have far-reaching night vision and lots of battery life so they can last for many months at a time even with 4K resolution and audio. The catch is that if you want to see what the camera picked up, you'll need to manually view it like a digital camera, or take out the SD card for a more lengthy inspection. Still, as a weatherproof set-and-forget option, trail cams have their place. Read more: Top Home Security Tips When You're Renting with Roommates Get a more complete look at your options with our guides to the top DIY home security systems, wireless home security, and security systems that can easily move with you if you're frequently on the go.
Yahoo
17-06-2025
- Business
- Yahoo
The stock market's secret weapon: Insatiable demand from American retirement accounts
Americans are snapping up huge volumes of stock via their retirement accounts, Goldman Sachs says. The TINA trade—which stands for There is No Alternative to stocks—is alive and well, Goldman said. Strategists said they believed hot demand for stocks could help drive the S&P 500 to fresh highs. For US households, there's still no alternative to the stock market. The TINA trade in stocks — which stands for There Is No Alternative — was thought to be waning in recent years as rising interest rates since 2022 boosted bond yields for the first time in years, giving investors another option to lock in steady returns. However, TINA appears to be back in full swing, and the impulse is particularly strong in US retirement accounts like 401(k)s, Goldman Sachs analysts wrote in a recent note. Strategists at the bank pointed to red-hot demand for stocks in US retirement accounts, with total 401(k) allocations to equities in the US swelling to $8.9 trillion in 2024. In 2022, 71% of 401(k) assets were allocated to stocks, up from 66% in 2013. Among account owners in their 20s, the allocation is even higher, with the average investor allocating 90% of their portfolio to stocks, the bank found. Retail traders, meanwhile, have snapped up around a net $20 billion in stocks over the last three months, according to estimates from Goldman's trading desk. Altogether, roaring demand from retirement accounts and retail brokerage accounts paints a healthy backdrop for the stock market. US household demand is a key pillar of strength for the market, the bank said. US households have raised their total stock allocation to 49% in recent years, the highest level on record, and the bank said it expects households to directly purchase $425 billion in equities this year. Those are signs that the TINA trade is in full swing, a major bullish catalyst for stocks, strategists said "TINA trade remains alive and well in US retirement accounts," a team of strategists led by David Kostin wrote in a note on Friday. "We believe that persistent household equity demand and high allocations to equities will continue to support elevated equity valuations. However, the bank also notes that the top 10% of households by wealth represent 87% of household equity ownership, meaning demand is being driven by a relatively small slice of the population. The analysts added that an even smaller group—the top 1%—has been the primary driver of equity demand in the last 30 years. The bank anticipates the S&P 500 rising to a record high of 6,500 over the next 12 months, implying 7% upside from the index's current levels. Goldman recently lifted its year-end price target for the S&P 500 to 6,100. Previously, the bank slashed its target for the index to account for the impact of tariffs, but has since lifted its economic outlook amid the easing trade tensions and progress on negotiations. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
16-06-2025
- Business
- Bloomberg
Roku Shares Jump on Amazon-Connected TV Advertising Partnership
Roku Inc. shares gain 11% premarket after the company and Inc. 's Amazon Ads announced a partnership, saying that advertisers will now have access to more than 80% of US households with connected TV though the Amazon DSP marketing tool. Link to Statement:
