Roth IRA

Graduation season always puts me in a nostalgic frame of mind. It was a great time in my life, both high school and college graduation. The world was my oyster, full of hope and promise. I’m sure today’s graduates feel the same way. The future is bright. And like I did, I’m sure they think they know all the answers. Oh, to be that age again, but know what I do now. … [Read more...] about A word of advice for today’s graduates – Mississippi’s Best Community Newspaper

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. Tax-deferred retirement accounts can shelter your nest egg from Uncle Sam while you’re working. But eventually you have to pay income taxes on your retirement funds, which is why those … [Read more...] about How To Calculate RMDs – Forbes Advisor

Video above: Tax changes amid COVID-19 pandemic that could impact you Next Monday, May 17, is the official deadline for individuals to file their 2020 federal tax return, and in most instances, their state tax return, too.It's a month later than usual, thanks to the pandemic. But the filing deadline's not the only thing that's changed. Many of the upheavals over the past year … [Read more...] about Tax Day is Monday. Here’s what you need to know after a year of pandemic stimulus checks

Thirteen years ago, Margie Owen of Atlanta had a large tax-deferred account that she intended to leave to her children someday. The retired educator didn’t want to create a tax burden for her heirs. So each year, she has taken a chunk of her tax-deferred money, paid taxes on it and converted it to tax-free Roth IRA money. Almost two-thirds of her investments now are in … [Read more...] about Roth IRA Conversions: What You Need to Know

Win McNamee | Getty Images News | Getty ImagesBiden tax planGenerally, Roth accounts make sense if taxpayers think their income-tax rate will be higher when they withdraw money in retirement.In that case, it would yield a financial benefit to pay the tax now at a lower rate.Biden's tax plan may make Roth accounts more attractive, especially for wealthy households.The Biden … [Read more...] about Biden tax plan may spur boost in Roth retirement accounts

What You Need to Know The Secure Act changed the inherited IRA rules for most non-spousal beneficiaries. A recent IRS publication created confusion around whether RMDs are required for those beneficiaries covered by the 10-year rule. An example presented by the IRS seemed to show that distributions needed to be taken every year. That's not the case. The Setting Every … [Read more...] about IRS to Fix Inherited IRA Guidance That Confused Advisors

Video above: Tax changes amid COVID-19 pandemic that could impact you Next Monday, May 17, is the official deadline for individuals to file their 2020 federal tax return, and in most instances, their state tax return, too.It's a month later than usual, thanks to the pandemic. But the filing deadline's not the only thing that's changed. Many of the upheavals over the past year … [Read more...] about Tax Day is Monday. Here’s what you need to know after a year of pandemic stimulus checks

A Roth IRA is a uniquely powerful retirement savings tool, because you won’t pay taxes on the money you withdraw during retirement. An annuity is a way of generating guaranteed income. Put them together, and you have a powerful retirement protection tool that can provide guaranteed income for life, with a big plus: It’s completely tax-free.Anyone may roll over part or all of an … [Read more...] about This Often-Overlooked Way to Fund Your Roth IRA Has Many Advantages

Reaching into your Roth early is never ideal, but it may be the solution that keeps the rest of your retirement plan intact and moving forward.2. Take tax-free withdrawalsQualified retirement withdrawals from your Roth IRA are tax-free. On paper, that's an advantage when you expect your tax rate in retirement to be higher than it is today. In practice, having a source of … [Read more...] about 4 Ways a Roth IRA Is Icing on the Retirement Cake | Personal Finance

Stacy Murray With President Biden and Congress looking at a federal tax increase in 2021, this may be the time to consider converting savings from a traditional IRA into a Roth account for tax-friendly features that benefit retirees and their families. Roth IRAs were created by Congress as part of the Taxpayer Relief Act of 1997, allowing people to deposit after-tax income into … [Read more...] about Loophole opens back door to Roth IRAs – The Journal Record