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IRAs: Build a tax-favored retirement nest egg
January 30, 2024
Categories: #hh, Investments, IRA, Retirement, Roth, Secure2.0
Although traditional IRAs and Roth IRAs have been around for decades, the rules involved have changed many times. The Secure 2.0 law, which was enacted at the end of 2022, brought even more changes that made IRAs more advantageous for many taxpayers. What hasn’t changed is that they can help you save for retirement on a tax-favored basis. Here’s an overview of the basic rules and some of the recent changes. Rules for traditional IRAs You can make an annual deductible contribution
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11 Exceptions to the 10% penalty tax on early IRA withdrawals
November 14, 2023
Categories: #hh, Early Withdrawal, IRA, Secure2.0, SEP-IRA, SEPP, Simple IRA
If you’re facing a serious cash shortfall, one possible solution is to take an early withdrawal from your traditional IRA. That means one before you’ve reached age 59½. For this purpose, traditional IRAs include simplified employee pension (SEP-IRA) and SIMPLE-IRA accounts. Here’s what you need to know about the tax implications, including when the 10% early withdrawal penalty tax might apply. Penalty may be avoided In almost all cases, all or part of a withdrawal
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Contributing to your employer’s 401(k) plan: How it works
November 7, 2023
Categories: 401(k), IRA, Retirement, Roth
If you’re fortunate to have an employer that offers a 401(k) plan, and you don’t contribute to it, you may wonder if you should participate. In general, it’s a great tax and retirement saving deal! These plans help an employee accumulate a retirement nest egg on a tax-advantaged basis. If you’re thinking about contributing to a plan at work, here are some of the advantages. With a 401(k) plan, you can opt to set aside a certain amount of your wages in a qualified retirement
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There still may be time to cut your tax bill with an IRA
March 2, 2022
Categories: Home Office, Retirement, Tax Breaks, Tax Cuts, Tax Records
If you’re getting ready to file your 2021 tax return, and your tax bill is more than you’d like, there might still be a way to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA right up until the April 18, 2022, filing date and benefit from the tax savings on your 2021 return. Do you qualify? You can make a deductible contribution to a traditional IRA if: You (and your spouse) aren’t an active participant in an employer-sponsored