Last week we discussed how to complete a back-door Roth IRA contribution. For many, this strategy is a slow and boring way to do it. Fortunately, there is another option, which can lead to larger Roth contributions when you earn too much. The ability to use this strategy is relatively new. In September 2014, the IRS released Notice 2014-54 to grant . . .
A Roth IRA grows tax-free and provides tax-free distributions. These features make a Roth IRA a powerful tax shelter. Because of these unique benefits, the desire to get money into a Roth IRA is high. However, income thresholds limit access to Roth IRAs. Therefore, certain earners are unable to gain direct access to a Roth IRA. If . . .
The American ideal. Owning a home, a nice pension, and social security. You were set for life. After the 2008 housing crisis the desirability of home ownership changed. Many people lost everything because they bought too much house. Pensions are going extinct. Social security has changes on the horizon. The American ideal isn’t the same . . .
On July 4, 1776, the Declaration of Independence was signed separating the thirteen American colonies as a new nation. The dawn of the United States of America! Since then Independence Day is commonly celebrated with fireworks, parades, and parties. While a group of states celebrate with a bang, finding your personal financial independence can be . . .
Early retirement sounds like a myth. Maybe you believe in it a little bit, but think it is limited to those born with a silver spoon or winning the lottery. An inheritance or winning the lottery is a definite possibility but not one you can plan on experiencing. Two things you need to understand about . . .
Now that we understand in tax planning it is all about timing, let’s look at a strategy to maximize your 2017 charitable contribution deduction. Under proposed tax reform, it is clear that itemized deductions will change significantly. For many people this means using the itemized deduction will go away completely. This does not automatically make . . .
Most people I know do not like paying taxes. Some do not like paying their fair share while most people are fine paying their fair share of taxes. To those who are not interested in paying their fair share… be careful because that can lead to tax evasion. Tax avoidance is cool. Tax evasion is . . .
The past two weeks we looked at why a Roth Account is the best and why a Tax-Deferred Account is the best. While the last two articles hit on both 401(k) and IRAs, this week we are focusing on choosing between a Roth IRA or a Traditional IRA. The decision matrix behind these two choices . . .
Last week we discussed when to contribute to a Roth account. This week we will look at the counter part… tax deferred accounts. These are known as Traditional IRA, 401(k), 403(b), SIMPLE IRA, and SEP to name a few popular versions. As you can see, there are many more tax-deferred account options than Roth options. . . .
When it comes to saving the question of “where should I save my money” is a popular and important question. Typically the showdown of best account is between the Roth and Pre-Tax (traditional) accounts. While each account has its merits and if you still aren’t sure after reading this plus don’t want to seek professional . . .