Can my 11-year-old open an IRA?

• How can I avoid state taxes if I retire overseas?

  If I retire overseas, can I lower my taxes by declaring residency in any state I want? — C. Czuchna, Gainesville, Va.

  Not quite. You can't just declare residency; you have to live there before taking off. Steps to show you've really moved to the no-income-tax state of your dreams (such as Florida, Nevada, or Texas): buying a home (and selling your old one), getting a driver's license, and registering to vote.

  Do MORE

  Apr 27, 2013 6:30 AM ET
  Posted in: Retirement, Taxes

• Can I use 401(k) money tax-free to buy a home?

  Can I take money tax-free from my 401(k) for a down payment on a home? — Dev Ananth, Plano, Texas

  You may be able to pull money out, but you can't avoid taxes. And that's not the only downside.

  Most plans let you borrow half of your savings, or $50,000 (whichever is less); you'll repay that with after-tax dollars — not the untaxed dollars you contributed originally. Leave your job without repaying and MORE

  Apr 13, 2013 6:30 AM ET
  Posted in: Real Estate, Retirement, Taxes

• Which contributions come out of my IRA first?

  I put tax-deductible and nondeductible money in my IRA. What comes out first? — Duane Hoffmeyer, Mesa, Ariz.

  Most money in traditional IRAs comprises tax-deductible contributions and any account earnings over the years, all of which is taxable when you pull the money out. You evidently also made nondeductible, after-tax contributions, which exit your IRA tax-free.

  To answer your question, the funds come out simultaneously. Add up your after-tax contributions. The percentage of MORE

  Mar 31, 2013 3:17 PM ET
  Posted in: Retirement, Taxes

• How does divorce affect Social Security benefits?

  My husband and I are getting divorced after 24 years. I'm 59 and on disability; he's 65 and not yet retired. He says that after the divorce I can collect on his Social Security, which will be higher than my disability benefits. Is that correct? Also, would I be able to collect on his Social Security after his death? — Name withheld

  Based on your information you may be eligible for MORE

  Dec 31, 2012 6:30 AM ET
  Posted in: Family Money, Retirement

• How do you get pension payout estimates?

  My husband was downsized a year ago. He is eligible to start taking a pension from his former company, but they refuse to give him any information with regard to projections. How do we decide when to start his pension if they won't tell him the difference in payout for year 62, 65, etc.? — M. Anderson

  If you haven't done so already, refer to the section in your husband's summary MORE

  Dec 26, 2012 6:30 AM ET
  Posted in: Retirement

• Which are the best states for retirees?

  Which states are most tax-friendly for retirees? — Larry O.

  There are a lot of things to think about when choosing a place to retire, and state taxes are definitely worth considering. It's particularly useful to look at how states tax Social Security, pensions and IRA distributions, says Liane Warcup of Geneva, Ill.-based Clarus Financial Planning.

  For instance, Social Security benefits are federally taxed, but they are excluded at the state level in MORE

  Dec 19, 2012 6:30 AM ET
  Posted in: Retirement, Taxes

• Can I deduct interest on a 401(k) loan to my business?

  Let's say I make a loan to my (or my wife's) business by borrowing from my 401(k) and using the money for business expenses. Is the interest the business pays back to my 401(k) plan tax deductible? — Michael R.

  The short answer is no, according to Myrna Mitnick, a senior tax manager at Baltimore, Md.-based CPA firm Leonard J. Miller & Associates. The IRS typically does allow businesses to deduct MORE

  Dec 14, 2012 6:30 AM ET
  Posted in: Retirement, Taxes

• Should I buy additional credit for my pension?

  Should I purchase additional service credit to increase the final compensation for my pension plan? I'm currently 42 and plan to retire at 62. At that age, I will receive 81.5% of my $10,000-a-month income. I was told I could increase my final compensation by about 10% at the cost of $82,000 (which I plan to transfer from my 457 plan). Is this a good idea? – Name withheld

  Given your MORE

  Dec 12, 2012 6:30 AM ET
  Posted in: Investing, Retirement, Taxes

• Can I make both pre- and post-tax contributions to a 401(k)?

  Can I invest both pre- and post-tax dollars in the same 401(k)? If so, how do I know what taxes I owe at withdrawal? — Kathy B.

  Whether or not you can invest both pre-tax and after-tax dollars in the same 401(k) depends on the plan itself. It's a safe bet that your employer's 401(k) plan permits pre-tax contributions, according to Kaye Thomas, who spent two decades as a tax lawyer MORE

  Dec 11, 2012 6:32 AM ET
  Posted in: Investing, Retirement, Taxes