When it comes to taxes, we all have to pay the piper. In this case, the piper is Uncle Sam. So, even though you’ve seemingly already paid your fair share, your taxes aren’t going to necessarily be any lower in retirement. And, this also applies to annuity owners.Annuity Taxation 101Annuities are taxed by the IRS based. And, the tax is almost entirely calculated on how they were … [Read more...] about Understanding Annuities and Taxes: Mistakes People Make
Roth IRA
Are IRA Contributions Pre-Tax?
Pre Tax IRAThere are many ways to save for retirement, but one of the best is to get an individual retirement account (IRA). These are especially useful if you don’t have access to a workplace retirement account, like a 401(k) or 403(b). An IRA is essentially a shell into which you deposit and invest money for the purpose of growing your retirement savings. Workplace retirement … [Read more...] about Are IRA Contributions Pre-Tax?
Even if you aren’t working, you may be able to open an IRA. Here’s how
Westend61 | Westend61 | Getty ImagesIf you are not working and married, you may be leaving tax-deductible money on the table — money that could go towards your retirement savings.While you typically need to have income to open an individual retirement account, there is an exception for married spouses who file their taxes jointly. It's known as a spousal IRA, but it is simply a … [Read more...] about Even if you aren’t working, you may be able to open an IRA. Here’s how
How high-earning professionals from executives to lawyers can use their salaries to build a mega Roth IRA for retirement
Massive retirement savings aren’t just for venture capitalists who hit it big with Silicon Valley startups.Many high-earning professionals in corporate America, from doctors and lawyers to executives and airline pilots, can accumulate a seven-figure or more retirement cache of tax-free profits using a loophole known as a mega backdoor Roth conversion.Those high earners make up … [Read more...] about How high-earning professionals from executives to lawyers can use their salaries to build a mega Roth IRA for retirement
Stock trading could mean a hefty tax bill. What you need to know
Investors may be cheering the stock market's performance over the last year and looking to take a profit from their growing portfolios.But, doing so could mean they owe Uncle Sam.The stock market has been on a tear — today's selloff notwithstanding — since slumping in March 2020 due to coronavirus concerns. On Monday, the S&P 500 doubled its level from the pandemic low, … [Read more...] about Stock trading could mean a hefty tax bill. What you need to know