Roth IRA

Given their popularity and widespread use, people rarely think of IRAs as “tax shelters.” But truth be told, that’s exactly what an individual retirement account is: a legal tax shelter.However, in order to reap the benefits that traditional IRAs and Roth IRAs provide, taxpayers must comply with an assortment of rules. Such rules include limitations on the amount of money that … [Read more...] about Investing a Roth IRA in early stage growth companies without violating prohibited transaction rules

Remember the Romney IRA? Now there’s a new hue and cry and it could spell trouble for Roth IRAs, and Roth IRA conversions. The trouble began last Thursday when ProPublica published an article lengthily titled, “Lord of the Roths: How Tech Mogul Peter Thiel Turned a Retirement Account for the Middle Class Into a $5 Billion Tax-Free Piggy Bank.” Thiel is founder of PayPal (he’s … [Read more...] about Rich Roth IRAs Draw Wrath, Attention

North American mining and hosting firm Compass Mining is offering a new tax avoidance method for savvy crypto miners that file in the United States. In a Thursday announcement, Compass Mining said it had partnered with IRA provider Choice by Kingdom Trust to help Bitcoin users mine directly to their IRAs “without ever triggering a taxable event.” Under current U.S. law, income … [Read more...] about Taxpayers to avoid obligations by sending mining proceeds to IRAs

Will your retirement dreams match your reality? That’s perhaps the most critical question to ask people who are currently retired. Is your retirement what you expected, or is it something else? For more than 30 years, the Employee Benefit Research Institute has conducted the Retirement Confidence Survey, which gauges the views and … [Read more...] about Retirement expectations, reality often don’t align > Spokane Journal of Business

I didn’t have a lot of exposure to financial education as a child. That’s consistent with a wealth management poll that found that 37% of those in my generation had no one to teach them about investing; the number ticks up to 38% for Baby Boomers. That’s why I opened a minor’s account for each of my three children and encouraged them to invest through the platform. I wanted … [Read more...] about Tax Advice for Parents Since Teens Like to Play the Market, Too

On July 4 you wrote that the first $20,000 of an individual retirement account distribution is exempt from New York State income tax. Does that include a distribution that’s rolled over to a Roth IRA, sometimes called "a backdoor Roth conversion"? Yes. New … [Read more...] about Ask the Expert: The rules for ‘backdoor’ Roth IRAs

Nearly 25,000 people had traditional and Roth individual retirement account balances of at least $5 million and $10 million in 2019, according to recent data obtained by the Senate Finance Committee — in total, these accounts amount to $160 billion. Of those investors, 2,175 people have Roth IRAs and almost 22,000 have traditional accounts. Roth accounts are funded with … [Read more...] about About 156 people have at least $25 million in their Roth IRAs — each

Shot of a mature couple managing their paperwork together at home getty One of the most common questions we receive centers around the decision with what to do with your old 401(k) account. We analyze multiple ways to look at whether to stay or move strategically, but if you decide to move the funds from one firm to another, how do you best proceed? Here is what to … [Read more...] about What To Expect When You Do A Retirement Account Rollover

Below is an excerpt from The Collective, Poynter’s newsletter by journalists of color for journalists of color and our allies. Subscribe here to get it in your inbox the last Wednesday of every month. Rule No. 1: It’s not what you make but what you save. That’s what my parents always told me as a kid. My mother was a first-generation college graduate. She paid her own way, … [Read more...] about You can save for retirement — even as a young journalist making $18,500

By Robert Klein, CPATilney, a highly-regarded financial planning firm in England, where workers are automatically enrolled in employer pension plans unless they opt out, surveyed 1,300 employees in 2018 regarding what they planned to do with their pension when they retire. The results were as follows:40% said they didn’t know what they would do.22% said they expected to keep … [Read more...] about How to Enjoy a Guilt-Free Retirement