Concerned about overpaying taxes on your IRA distributions? It’s a valid worry but one that you can address if you have the right information. First, you need to know what kind of contributions you made—pre- or post-tax—and to what type of account. Keeping good records is key. Key Takeaways Most contributions to an IRA are […]
Read MoreIf you don’t need your required minimum distributions (RMDs) from your traditional IRA for living expenses, can it be reinvested in a Roth IRA? Yes, it can—assuming you are eligible for a Roth based on your income. This is because the money to fund your IRA can come from any pool of cash you have […]
Read MoreThe major appeal of Roth IRAs is that, if you follow the rules, your withdrawals will never count as income and, as a result, be totally tax-free. But the rules differ depending on whether the money you withdraw represents your contributions to the account or the account’s earnings over time. This article explains when your […]
Read MoreYou may be considering dipping into your retirement savings to buy a residence, come up with a down payment or cover closing costs. There are plenty of pros and cons when it comes to using your IRA to pay for or help pay for a house. We outline those below. If you’re strongly considering doing […]
Read MoreRoth IRAs are popular accounts for investors to leave to their heirs because of these accounts’ tax-free status and lack of required minimum distributions (RMDs) during the original owner’s lifetime. Roth contributions are made with after-tax money, and any distributions you take are tax-free as long as you are at least 59½ years old and […]
Read MoreThe Roth IRA has skyrocketed in popularity with Americans looking to stash money away for retirement. In mid-2020, Roth IRAs were held by 26.3 million U.S. households, or 20.5%, according to data from the Investment Company Institute. The Tax Cut and Jobs Act (TCJA), passed in late 2017, also provided a boost for Roths: The […]
Read MoreThe Internal Revenue Service (IRS) has announced that contribution limits for 401(k)s, 403(b)s, most 457 plans, thrift savings plans (TSPs), and other qualified retirement plans will rise by $1,000 for 2022, going from $19,500 to $20,500. However, contribution limits for individual retirement accounts (IRAs), whether traditional or Roth, will remain the same at $6,000. In addition, the […]
Read MoreTo avoid the worst retirement mistakes, you have to be realistic about your future plans and think ahead. Unfortunately, it’s all too easy to make the wrong financial moves when preparing for retirement. According to the Federal Reserve, 37% of non-retired adults believe their retirement savings are on track. But none of the 44% who say […]
Read MoreThe joys of self-employment are many, but so are the stressors. High among those is the need to plan for retirement entirely on your own. You are in charge of creating a satisfying quality of life post-retirement. When it comes to building that life, the earlier you start, the better. Luckily, there are several retirement […]
Read MoreEarning a higher income may seem like the key to a more comfortable retirement, but it can actually be a barrier to some kinds of tax-advantaged retirement savings. That’s because a larger salary can shut you out of contributing to a Roth IRA. For 2021, Roth IRA contributions are not allowed for single filers with a […]
Read MoreRegardless of whether you’re 25 or 55, saving for retirement is a wise financial strategy. Everyone will face retirement at some point, either by choice or necessity. Whether you are on track for retirement savings or need to play catch up, or you’re a financial advisor who wants to give clients a leg up on […]
Read MoreThe share of Americans coming out of retirement and back into the workforce is finally increasing and could be key to bringing the labor force participation rate back to its pre-pandemic levels. More than 2.6% of retired workers returned to work in October, the highest since April 2020, according to an analysis by Indeed of […]
Read MoreMan walking on a road with the word “RETIREMENT” painted in front of him Too many Americans are unprepared for retirement, according to a PwC analysis. Around a quarter of U.S. adults have no savings at all for retirement, and only 36% are on track. Fortunately, several major brokerages offer age-based benchmarks that folks would […]
Read MoreRoth IRA vs. traditional IRA: which is better for you? What’s the difference between them? Roth IRA Vs. Traditional IRA The short answer is that you should use the one that leaves you more money after you’ve paid taxes. That generally boils down to one factor: if you expect your tax rate to rise when […]
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