IRA vs 401k

Retirement Options

Roth IRA

Don’t Miss Out on Funding Your Child’s Roth IRA for 2020 | Personal Finance

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Fortunately, there's still time to contribute to your child's Roth IRA for 2020. The deadline to contribute to an individual retirement account is the same day that federal income tax returns are due. The IRS pushed the 2020 filing date from April 15, 2021 to May 17, 2021. This gives you a little more time to stash some cash away for your child's future.Make sure your kids … [Read more...] about Don’t Miss Out on Funding Your Child’s Roth IRA for 2020 | Personal Finance

Should you open a Roth IRA for a child? Here are 5 rules to watch.

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If you want to give your child a jump start on investing, establishing a Roth IRA for them is a great place to start. You can teach them the value of saving and investing, plus they'll get the benefits of extra time for their money to compound. Opening a Roth IRA for kids under 18 is allowed, but there are certain rules you have to follow. Here are five things to know before … [Read more...] about Should you open a Roth IRA for a child? Here are 5 rules to watch.

Carla Fried: Plan ahead for monthly federal payments to families with children

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Families with minors are in line to see a major boost in their checking accounts starting in July. The federal government starts sending monthly checks of $250 to $300 per child to single parents with income below $75,000 and married couples filing a joint tax return with income below $150,000. At higher income levels, benefits are reduced and eventually phase out. Child tax … [Read more...] about Carla Fried: Plan ahead for monthly federal payments to families with children

What Is a Mega Backdoor Roth?

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A mega backdoor Roth is a tax strategy you can use to dramatically increase contributions to a Roth individual retirement account and bypass the usual Roth IRA income limits. As with any Roth, your money grows without being taxed, and the funds can be withdrawn tax-free in retirement.You may be able to make a mega backdoor Roth contribution if you:-- Have a 401(k) plan at … [Read more...] about What Is a Mega Backdoor Roth?

Weekly Wrap: What You Should Know About Cryptocurrency Regulation, Diversification, and Corporate Tax Rates

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Editor's note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it. Delivering a commencement address can't be easy. It requires at least a few good jokes and, of course, some memorable anecdotes. Great speeches also impart wisdom, simultaneously applauding new graduates on their accomplishments and encouraging them to … [Read more...] about Weekly Wrap: What You Should Know About Cryptocurrency Regulation, Diversification, and Corporate Tax Rates

Liz Weston: Oregon caps tax credit for 529 college savings plans. Are they still worth it?

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Dear Liz: The state where I live, Oregon, has removed the tax deduction for 529 college savings accounts. This was quite disturbing to discover upon getting my taxes done this year. Other than the obvious savings benefit, are these accounts still worth having? Fortunately our son is almost done with college, so it won’t affect us much, but I am thinking of my two … [Read more...] about Liz Weston: Oregon caps tax credit for 529 college savings plans. Are they still worth it?

A Young Worker’s Guide to Saving for Emergencies and Investing for Retirement

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When Emily Bailey finished her degree in management from Indiana University Bloomington six years ago, she was among the group of graduates called the “Lost Generation” as they tried to get a career foothold in an economy still scarred by the 2008-09 financial crisis and recession. Like many, she had thousands of dollars in student loans, no job in her field, and settled on a … [Read more...] about A Young Worker’s Guide to Saving for Emergencies and Investing for Retirement

‘The Roth IRA is like the golden egg’

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The GuardianOne year on, how George Floyd’s murder has changed the worldThe killing of Floyd by a white officer reflected a common history of violence against Black people that united protesters in a renewed global movement Miski Noor, an activist and co-founder of Black Visions, in Minneapolis, Minnesota. Photograph: Nina Robinson/The Guardian George Floyd’s murder felt like … [Read more...] about ‘The Roth IRA is like the golden egg’