Tax-advantaged retirement accounts such as IRAs are a great way to save for retirement. A self-directed IRA could be for you if you want to walk on the wild side and invest your retirement money in assets such as real estate or cryptocurrency. But when you establish a traditional IRA with a bank, a brokerage, …
What Is a Self-Directed IRA and Are They For You? Read More »
Are Roth IRA withdrawals taxed? Yes, some withdrawals are taxable. Even worse, some can be socked with a 10 percent early withdrawal penalty tax, and this can happen even when there’s no income tax hit. Rules for Qualified Withdrawals Are Simple Any withdrawals from any of your Roth accounts are federal-income-tax-free qualified withdrawals if you, …
Did you take a coronavirus distribution (CVD) of up to a combined limit of $100,000 from one or more of your traditional IRAs in 2020? You can recontribute the CVD amount(s) back into one or more traditional IRAs within three years of the withdrawal date(s). You treat each withdrawal and later recontribution within the three-year …
Take Coronavirus Distribution(CVD) Money Last Year: What Now? Read More »
How do you multiply your net worth? Let the government help. Here’s how: with both the SEP IRA and the solo 401(k) retirement plans, your investment in your tax-favored retirement creates tax deductions for the money you invest in the plan, grows tax-deferred inside the plan, and suffers taxes only when you take the money …
SECURE Act-Top Eight Changes You Need to Know! As has become common practice, Congress passed some important assessment enactment as it recessed for these special seasons. In one of the new significant laws, instituted on December 20, you will discover the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act). The SECURE …
Why a SIMPLE-IRA Could Be Your Best Retirement-Plan Alternative Talk to a business owner who has been in business for a while and he or she will tell you to make sure that you put a retirement plan in place. When you are starting out and have a modest income, the SIMPLE IRA(Savings Incentive Match …
SIMPLE-IRA – Could It Be Your Best Retirement Alternative? Read More »
Solo 401(k) Could Be Your Best Retirement Plan Option Have you procrastinated about setting up a tax-advantaged retirement plan for your small business? If the answer is yes, you are not alone. Still, this is not a good situation. You are paying income taxes that could easily be avoided. So consider setting up a plan …
Solo 401(k) – It Could Be Your Best Retirement Plan Option Read More »
You probably think you can’t take money out of your IRAs or 401k before age 59 1/2 unless you meet a narrow exception to the unpleasant 10 percent penalty on early distributions. But that’s not true. We have a variety of planning opportunities here. Way 1: Roth IRA Contributions For example, you don’t pay taxes …
3 Ways to Take Money out of Your IRA/401k at Any Age- Penalty-Free Read More »
Rolling over a qualified retirement plan into an IRA is usually a tax-smart move. That’s because a rollover allows you to continue to defer taxes on the rolled-over amount. You might think that arranging for tax-free retirement account rollovers is a relatively foolproof task. Evidently not! Litigation between the IRS and taxpayers over attempted rollovers …
Planning to cash out a retirement plan account that has outstanding loans? You’re taxed on the gross distribution, not the net amount you receive after the plan administrator repays the loans. Here’s an example from the Tax Court: A woman borrowed money from her retirement account on two separate occasions. When she closed it, the …
Short Blog: Retirement Plan Taxed on the Gross Distribution Read More »