Parents, grandparents, and others can now contribute to Internal Revenue Code Section 530A accounts — also known as “Trump Accounts” — to benefit eligible children. This new type of tax-advantaged savings vehicle was created by last year’s One Big Beautiful Bill Act. Now that 530A accounts have gone live, here’s an overview of what anyone
If you participate in a SIMPLE-IRA and are age 50 or older, you can make so-called catch-up contributions that are above and beyond what younger participants can contribute. These catch-up contributions are intended to address the fact that many people aren’t saving enough for retirement. Here’s what you need to know about SIMPLE-IRA catch-up contributions,
Not all married couples earn dual incomes. For example, during the course of a marriage, one spouse may leave the workforce to care for a family member or tend to his or her own health issues. Regardless of why you left and whether it’s temporary or long-term, you might still want to save for retirement
For one reason or another, you may need to take some money out of an IRA before retiring. You can withdraw money from an IRA at any time and for any reason, but it’s important to keep in mind that most IRA withdrawals are at least partially taxable. In other words, you’ll owe regular income
Many self-employed individuals are eligible to make annual contributions to Roth IRAs, despite having healthy earnings from their businesses. But some haven’t yet taken advantage of this retirement-saving strategy. Making annual Roth contributions can have a big upside by allowing you to accumulate a federal-income-tax-free nest egg for retirement. Roth IRA Basics Contributions to Roth
Have you recently left the job market to raise your kids, care for an elderly parent or pursue personal interests? Regardless of why you left and whether it’s temporary or long-term, you might still want to save for retirement while your spouse continues working. If so, tax-favored traditional IRAs and Roth IRAs might be good options
Only 17% of individuals surveyed say they are “very confident” they will have enough money to live comfortably throughout their retirement years. At the same time, 36% were not at all confident. In 2001, Congress passed a law that can help older workers make up for lost time. But few may understand how this generous
In today’s tight labor market, many people are exploring new job opportunities with better compensation packages and improved work-life benefits compared to what their current employers offer. Before you leave to pursue greener pastures, it’s important to understand the options for the savings you’ve built up in your employer’s 401(k) plan or another qualified retirement plan.
When you take withdrawals from your traditional IRA, you probably understand they’re taxable. But what does that really mean? Important: Once you reach a certain age, you must start taking required minimum distributions from your traditional IRAs to avoid an expensive tax penalty. Previously, the required beginning date (RBD) was April 1 of the year after the
Roth IRA and 401(k) accounts were created in 1998. Contributions to Roth accounts are taxed on the front end at ordinary tax rates when made. But withdrawals from these accounts are generally tax-free on the back end. If you began saving for your retirement before 1998, even if you subsequently started contributing to a Roth account, you’ve probably
