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Catch-Up Contributions

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

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What Happens to Your 401(k) Account When You Switch Jobs?

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.

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How are Traditional IRA Withdrawals Taxed?

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

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Would a Roth IRA Conversion Make Sense for You?

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

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Following Up on Coronavirus-Related Distributions from IRAs

If you were adversely affected by the COVID-19 pandemic, you may have taken a tax-favored coronavirus-related distribution (CVD) from a traditional IRA last year. This privilege was allowed under the CARES Act, which was signed into law on March 27, 2020. What steps can you take now to achieve the optimal federal income tax results? CVD

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Avoiding the 10% Penalty On Early IRA Withdrawals

For one reason or another, you may need to take some money out of an IRA before reaching retirement.* You can withdraw money from an IRA at any time and for nay 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

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Don’t Overlook a Roth IRA if You Are Self-Employed

Saving for retirement on a tax-advantaged basis should be on nearly everyone’s financial “to do” list, though in this current economic crisis, you may need to put it on the back burner for a time. Making contributions to a Roth IRA is one tax-wise way to save because you can take withdrawals after age 59

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