The Roth plan requires post-tax contributions, but allows tax free growth and distribution. With pre-tax plans, you contribute to the plans with your funds without any taxes deducted so the distributions are taxable. So which one do you choose? Find out more here.
Tax–free treatment of Qualified Charitable Distributions from traditional and Roth IRAs has been extended through December 31, 2011. As long as an individual meets certain criteria laid out by the IRS, this strategy will offer hefty tax savings for individuals. Find out more here.
Although the calendar says 2011 already, you can still make a 2010 IRA contribution. In fact, you can make a contribution until April 15, 2011. Furthermore, some taxpayers are eligible to deduct their IRA contributions, thereby lowering their taxes for a year long since over. Crazy? Not in the wonderful world of arcane tax rules. Here’s an overview of how IRAs affect your taxes and vice-versa.
When you save money in a workplace retirement plan such as a 401(k) or 403(b), you receive a tax deduction for your contribution. Consequently, by putting money away for your future in a 401(k), you also save tax dollars today. Learn more about how your retirement savings is taxed.
If you’re like many employed Americans, you probably have a 401(k) plan. Everybody knows they should be putting money into their 401(k) plan to prepare for retirement, but actually doing so can be a bit of a challenge. Money is...
That’s one heck of a tongue twister, isn’t it? As difficult as it may be to say three times fast, it’s actually much easier to think of a Roth IRA re-characterization as a “do over.” A re-characterization lets you undo a conversion you made earlier in the year.
Young investors are faced with a number of retirement options and deciding how to allocate that savings can be a little confusing. Those who work for somebody else often have the option to invest in a 401(k) or similar employer-sponsored plan. In addition, you have individual retirement accounts such as the Traditional and Roth IRA. The problem is there’s no single plan that’s best for everyone. You’ll often hear financial pundits tout the Roth IRA as the best thing ever, but is it really best for you?