IRA vs 401k

Retirement Options

Roth IRA

What’s the Best Way to Give a Financial Gift?

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Susan Dziubinski: Hi, I'm Susan Dziubinski for Morningstar. It's graduation season and you may wish to help new grads in your life with a financial gift. Joining me today to share some thoughts on giving financial gifts is Christine Benz. Christine is Morningstar's director of personal finance. Hi, Christine. Thanks for being here. Christine Benz: Hi, Susan. It's great to be … [Read more...] about What’s the Best Way to Give a Financial Gift?

I saved in a Roth but I’m ineligible. What can I do?

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Q. I contributed $6,000 for the year 2020 early last year towards the Roth IRA. While using the software to file my taxes, it is suggested to either withdraw my contribution and pay no taxes, or pay a penalty for each year until the contribution is withdrawn because I had more income and was thus ineligible for any Roth contribution. The brokerage account where I have invested … [Read more...] about I saved in a Roth but I’m ineligible. What can I do?

How to lower the chances you’ll pay taxes on Social Security

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Question: Tom and Anita from Springdale: How can we lower the chances we’ll have to pay taxes on our Social Security benefits?A: First of all, we’re glad you recognize there’s a chance your benefits will be taxable – because not everyone realizes this even though, according to the Social Security Administration, 40% of beneficiaries have to pay some amount of federal … [Read more...] about How to lower the chances you’ll pay taxes on Social Security

You Just Got an Extra Month to Fund Your 2020 Roth IRA

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If you didn't max out your 2020 Roth IRA contribution, it's not too late. The deadline for making your contribution isn't until Tax Day, typically April 15. But this week, the IRS announced that it's extending the tax deadline to May 17. That means you just got an extra month to max out your Roth IRA for 2020. Image source: Getty Images. Why contribute for 2020 instead of … [Read more...] about You Just Got an Extra Month to Fund Your 2020 Roth IRA

Taxpayers Can Still Get a Tax Deduction by Setting Up an IRA Before May 17, 2021

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As we head into the home stretch of tax filing season, you may have an ace up your sleeve: If you qualify and beat the tax return deadline, you can take an above-the-line deduction for an IRA contribution. Thus, the contribution may effectively reduce your 2020 tax liability.The IRS recently postponed the normal due date of April 15 for 2020 returns to May 17. It just announced … [Read more...] about Taxpayers Can Still Get a Tax Deduction by Setting Up an IRA Before May 17, 2021

Roth IRA strategies can save you money in retirement

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This is a common situation for high earners such as physicians during retirement, as many in the medical field are in the highest tax bracket. In retirement, tax-free income is the ideal way to take distributions, and a Roth IRA remains one of the best ways to get that benefit.However, high earners such as physicians may feel locked out of some tax-free withdrawal options as … [Read more...] about Roth IRA strategies can save you money in retirement

Could It Affect Your IRA?

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Photo by Rainer Fuhrmann / Shutterstock.com A retirement savings expert says he is “100% convinced” the IRS made a mistake and will have to correct it soon. Ed Slott, a well-respected IRA distribution expert, says IRS guidance issued in March likely mischaracterized how those who inherit an IRA are required to pay taxes on the money they receive. The alleged error stems from a … [Read more...] about Could It Affect Your IRA?

The 7 Must-Have Things the Best Brokers Have in Common

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When you want to invest your money in a brokerage or retirement account, you’ll have your choice of brokers to choose from — but not all brokers are equal. Before deciding which broker to trust with your money, it’s important to look at several factors, including the number of investment options they provide and the customer service available. best broker for free stock … [Read more...] about The 7 Must-Have Things the Best Brokers Have in Common

Could It Affect Your IRA?

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A retirement savings expert says he is “100% convinced” the IRS made a mistake and will have to correct it soon. © Rainer Fuhrmann / Shutterstock.com Ed Slott, a well-respected IRA distribution expert, says IRS guidance issued in March likely mischaracterized how those who inherit an IRA are required to pay taxes on the money they receive. Load Error … [Read more...] about Could It Affect Your IRA?