Inheriting assets can be a bittersweet experience. While it can be a significant financial windfall, it can also come with the burden of taxes. This guide will explore various strategies you can employ to minimize or even eliminate your inheritance tax liability. Understanding Inheritance Taxes: Before diving into tax-saving strategies, let’s first clarify the concept … Read more
These are the procedures to calculate your estimated tax liability Trending Videos You can convert a nondeductible IRA into a Roth IRA to take advantage of the additional benefits offered by the Roth, such as tax-free withdrawals and no mandatory minimum distributions (RMDs). But, the regulations you must adhere to will differ depending on whether … Read more
If you are still employed and making money, there may never be a bad time to take advantage of Roth IRA tax benefits. A similar bill is making its way through the Senate, and a recent proposal for pension reform passed the House. A clause in the SECURE Act eliminates the traditional IRA contribution cap … Read more
There are caps on the amount you can withdraw from an IRA, but the IRS limits the amount you can contribute. Find out how many times you can take an IRA withdrawal each year. 3 min read. When it comes to withdrawal options, individual retirement accounts (IRAs) provide greater flexibility than 401(k) accounts. You can … Read more
A living trust is often touted as a crucial estate planning tool, but is it truly necessary for everyone? This article delves into the factors that determine whether a living trust is right for you, helping you make an informed decision about your estate planning needs. Understanding Living Trusts and Probate Avoidance A living trust … Read more
Not everyone is able to contribute to a Roth IRA, despite the fact that they can be a strong and flexible way to invest in and save for retirement. Here are the requirements to use this kind of retirement account that you should be aware of. A Roth IRA is a powerful retirement savings tool … Read more
Managing inheritances and estate planning are invariably emotional undertakings, particularly for those who have loved ones receiving Supplemental Security Income (SSI) benefits due to special needs or disabilities. When receiving an inheritance, SSI recipients shouldn’t have to worry about losing their benefits in addition to their grief over a loved one’s passing. In the event … Read more
As a teacher, you have the unique opportunity to save for retirement through both a 403(b) and an IRA. Both options offer tax advantages and the potential for significant long-term growth, but they also come with distinct differences that can impact your financial future. This comprehensive guide will delve into the details of both 403(b) … Read more
You are aware that you can start getting Social Security benefits at age 62. But are you aware that those benefits might be taxable based on your income? Do not apply for Social Security benefits until you fully understand the interplay of the earnings test, the actuarial reduction, and the income tax consequences of the … Read more
Upon reading about various retirement plan options, you will undoubtedly encounter the terms “qualified” and “nonqualified.” These terms have a lot of ramifications for how these plans are administered and for both present and future taxation. As an employee, it is essential that you comprehend the distinctions between qualified vs. qualified retirement plans and how … Read more