When life as we knew it was put on hold in March 2020, so were federal student loans. The coronavirus had prompted broad shutdowns that reduced health risks but created financial hardships.
New rules for inherited IRAs could leave some heirs with a hefty tax bill. In the first quarter of 2023, Americans held more than $12 trillion in IRAs. If your parents saved diligently throughout their lives, there’s a good chance you’ll inherit some of that money.
Pay taxes now or later is often a consideration when people decide how to save for retirement, but Congress decided the only option for some older Americans should be now for certain retirement accounts.
Pay taxes now or later is often a consideration when people decide how to save for retirement, but Congress decided the only option for some older Americans should be now for certain retirement accounts.
The Internal Revenue Service is allowing people who inherited an individual retirement account after 2019 to skip a required minimum distribution this year, but most still must empty the account within 10 years.
Millions of high-earning Americans are slated to lose a popular tax deduction starting next year.
Savers ages 50 and older can make catch-up contributions in their 401(k) accounts each year, with eligible workers allowed to put an extra $7,500 into their accounts, for a total of $30,000, this year.
Are you familiar with Roth IRAs? If you’re not, you should be, because Roth IRAs are a great way to get tax-free income after you retire.
The Secure 2.0 Act, passed in December, contains more than 90 provisions affecting retirement-savings plans, such as individual retirement accounts and 401(k) workplace plans.
Advisors should take advantage of today’s low tax rates — and “do Roth conversions while taxes are on sale!” according to Ed Slott of Ed Slott & Co.
Every advisor, Slott told ThinkAdvisor Tuesday, “should be having this conversation with their clients. This may only last for the next three years (2023, 2024, and 2025). After that, tax rates are scheduled to revert back up to previous levels.”
What’s more, like 401(k)s, IRAs provide tax advantages to those who invest in them. If utilized properly, the Roth version of an IRA comes with tax-free withdrawals in retirement. And withdrawing money in retirement without owing any tax is the “holy grail,” says Ed Slott, a certified public accountant and founder of IRAHelp.com.
