Roth IRA

President Joe Biden's tax plan could come with a mega increase in capital gains taxes, driving the top rate from 20% to 39.6% for long-term investors. If you add on the 3.8% tax on investment income, the highest earners could be looking at tax rates as high as 43.4%. These potential tax hikes make the Roth IRA look even more attractive. If you've been putting off your tax … [Read more...] about Biden’s Expected 43.4% Tax Plan Is Another Reason to Max Out Your Roth IRA Now

When it comes to saving for retirement, there are different plans you can choose from. You may be tempted to open a traditional IRA because that way, you'll get an up-front tax break on the money you put in. Roth IRAs, on the other hand, don't offer that instant gratification. Rather, with a Roth IRA, you may have to wait years to reap some solid benefits. But in spite of that, … [Read more...] about 4 Reasons Roth IRAs Rule

Roth IRAs are usually recommended for young workers and those who think they're earning about the same or less than they think they'll spend annually in retirement. These workers could end up in a higher tax bracket in retirement than they're in right now, so giving the government a small percentage of their contributions today is usually the smarter financial play.Let's say … [Read more...] about 3 Ways a Roth IRA Is Icing on the Retirement Cake | Personal-finance

May 5, 2021 6:18 AM newsfeedback@fool.com (Kailey Hagen) Posted: May 5, 2021 6:18 AM Updated: May 7, 2021 8:07 AM 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 … [Read more...] about 3 Ways a Roth IRA Is Icing on the Retirement Cake

WASHINGTON (CNN) — Okay, last call.Next Monday, May 17, is the official deadline for individuals to file their 2020 federal tax return, and in most instances, like in Utah, 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 have caused other … [Read more...] about Tax Day is Monday. Here’s everything you need to know about filing your 2020 taxes

By Patrick Kuster, AIFWhen it comes to deciding which accounts should own which investments, there is a common misconception that your portfolio’s largest-expected-return investments should always be purchased within your Roth IRA. In other words, there is a highly accepted rule-of-thumb to avoid lower-yielding investments within your Roth and to always target maximizing income … [Read more...] about Why Stocks Aren’t Always Best Held in a Roth IRA

article If you want to aggressively tackle your debt, you'll need strategies that move the needle. (iStock) With rising costs for college tuition – which range from $9,410 for in-state public universities to $32,410 per year at private colleges – saving for your child’s tuition is a challenging task. But as daunting as it may seem, you can successfully create a savings … [Read more...] about 5 strategic ways to save for your child’s college tuition

article If you want to aggressively tackle your debt, you'll need strategies that move the needle. (iStock) With rising costs for college tuition – which range from $9,410 for in-state public universities to $32,410 per year at private colleges – saving for your child’s tuition is a challenging task. But as daunting as it may seem, you can successfully create a savings … [Read more...] about 5 strategic ways to save for your child’s college tuition

urbazon | E+ | Getty ImagesFor some would-be homeowners, coming up with the cash to buy a house can be tricky.Depending on your situation, a Roth individual retirement account could help.In a nutshell, up to $10,000 in Roth IRA earnings can be withdrawn — free of both taxes and penalty — for a home purchase if you meet certain requirements. That's in addition to being allowed … [Read more...] about A Roth IRA could help you buy a home. Here’s what to know

Make 2021 the Year You Finally open a Roth IRA, for the most tax free income in retirement. getty The Roth IRA is one of the largest gifts ever bestowed upon the American taxpayers by congress. While many people ignore the Roth IRA, it has been around for more than 20 years. Even small contributions over time can grow into a substantial amount of tax-free income … [Read more...] about What You Need To Know In 2021 About The Roth IRA