Roth IRA

Wealthier investors winced when they lost a valuable tax deduction for the five- and six-figure fees they pay to their financial advisors each year. While a portion of the lost perk can be cloned, the move comes with a price: diminished investment returns over time.When advisor fees are calculated based on assets under management, and when those assets swell, the fees are … [Read more...] about The lost deduction for fees paid to financial advisors and investment managers can be replicated, but doing so can lower an IRA’s returns come retirement.

Now that tax season is over, you can forget about taxes for a while! (Unless, of course, you got a filing extension.) But what should you do with all the forms, receipts, canceled checks and other records scattered across your desk? Do you need to keep them, or can you throw them away (or, should I say, shred them)? The IRS generally has three years after the due date of your … [Read more...] about How Long Should You Keep Tax Records?

Steps to avoid getting hit with a tax time bomb in retirement. getty Taxes don’t go away when you retire. In fact, for many of you reading this post, taxes may be even more onerous in the future once you are retired. Ignoring the ticking time bomb of taxes in retirement could dramatically lower your standard of living in retirement. As a fun financial planner who … [Read more...] about 5 Steps To Defuse The Retirement Savings Tax Time Bomb

Many people dream of leaving the workforce at an earlier age than most. And retiring early certainly has its benefits. If you go that route, you may get the opportunity to travel at a point in life when you have more energy to sightsee. Plus, there's something to be said for living life on your own terms, without having a boss to answer to all the time. But in order to retire … [Read more...] about Eager to Retire Early? Here’s 1 Mistake You Can’t Afford to Make.

Getty getty Health savings accounts (HSAs) are the best retirement planning tool available, and there’s a little-known legal trick that can help fully fund an HSA. An HSA has three powerful tax benefits. Contributions to the account are tax deductible when you make them, or excluded from gross income when an employer makes them. The account can be invested, and … [Read more...] about When To Use An IRA To Fund Your HSA

Baking is actually a pretty good metaphor for growing your retirement nest egg. The money you put aside for your future is like the cake's raw ingredients. The securities (stocks, bonds, mutual funds, etc.) that you invest your money in are like the oven that turns those raw ingredients into something that can actually feed you later on. And the account you keep your … [Read more...] about 3 Ways a Roth IRA Is Icing on the Retirement Cake

The five-year holding rule begins on the first day of the year for which you made your initial Roth IRA contribution (or converted a traditional IRA to a Roth). Once you've held your Roth funds for five years and have reached age 59 1/2, all funds you withdraw from your Roth will be tax- and penalty-free whenever you withdraw them. For example, if 2016 was the first year you … [Read more...] about How To Take Tax-Free Roth IRA Withdrawals


Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We may receive a commission when you click on links for products from our affiliate partners.My marriage was one of many pandemic divorces. I don’t need to get into the specifics regarding reasons, but, when it comes to finances, I’m happy to talk … [Read more...] about How I Managed My Finances After My Covid-19 Divorce

But you should think twice about making taxable brokerage accounts your one and only option. Every penny you earn could be taxed based on your ordinary income tax rate or higher capital gains rates. News is spreading that a tax hike could impact those with $1 million in annual income. With a Roth IRA, you could make $2 million in the future and that wouldn't impact the taxes on … [Read more...] about Biden’s Expected 43.4% Tax Plan Is Another Reason to Max Out Your Roth IRA Now | Personal Finance

After years of delaying income tax on your 401(k) and individual retirement account contributions, you must finally pay the tax bill in retirement. Distributions from 401(k)s and traditional IRAs become required after age 72, and you owe income tax on each withdrawal.Here is how to take required minimum distributions while preserving as much spending power as possible:-- Start … [Read more...] about How to Take Required Minimum Distributions