Roth IRA

Dear MarketWatch,  I am a 54-year-old woman. I don’t know whether it is more tax efficient for me to retire or continue to work.   Currently, I am employed with an annual salary of $200,000 a year. I have $3 million in a rollover IRA brokerage, which is holding 17,000 shares of Apple AAPL, -0.87% with a $10 cost basis and other investments with similar … [Read more...] about I’m 54 years old with a substantial nest egg and can live on $40k a year — can I afford to retire?

Investing is more popular than ever, with many online brokerages experiencing robust growth through the COVID-19 pandemic. Thus, it’s no surprise that people also have more choices than ever in selecting where to trade their stocks, funds and more. And with so many brokerages vying for a piece of the enormous investment portfolio pie, many have slashed fees, among other … [Read more...] about Switching Online Brokers: Here’s How To Move Your Investments To A New Account

Stimulus checks printed at the Philadelphia Financial Center in Philadelphia.Jeff Fusco | Getty ImagesAs new $1,400 stimulus checks start arriving, some people may be asking why they received less than they were expecting — or no money at all.This third round of direct federal payments was authorized by Congress and President Joe Biden earlier this month through the $1.9 … [Read more...] about How tax-deferred savings can impact your eligibility

The ERISA consultants at the Retirement Learning Center Resource regularly receive calls from financial advisors on a broad array of technical topics related to IRAs, qualified retirement plans and other types of retirement savings plans. We bring Case of the Week to you to highlight the most relevant topics affecting your business. A recent call with an advisor in Columbus, … [Read more...] about Case of the Week: How to Make a Legitimate $28,000 IRA Contribution

You might contribute to your IRA for decades to help pay for your retirement. But if you don’t need all the money, you may want to leave what’s left to your children or grandchildren. However, if you want to ensure they get the most from this inheritance, you’ll need to do some planning. Here’s a little background: Up until a couple of years ago, when you left the proceeds of … [Read more...] about Help protect your family’s inheritance

Getty getty When you’re age 70½ or older, the best way to make charitable contributions usually is through qualified charitable distributions (QCD) from a traditional IRA. A QCD can satisfy your required minimum distribution (RMD) for the year and reduce your income taxes. The QCD was a temporary innovation in 2006 but was made a regular part of the tax law in 2015. … [Read more...] about The Best Way To Make Charitable Gifts After Age 70½

Let's be honest: A $1,400 stimulus check isn't going to turn you into a millionaire by itself. But if that $1,400 motivates you to start investing regularly, you could easily become a millionaire. Before you think about investing your stimulus check, you should have enough money for bills, debt that's manageable, and at least a three- to six-month emergency fund. If all three … [Read more...] about 5 Secrets for Investing Your $1,400 Stimulus Check Like a Millionaire

Teaching your child how to save money from a young age will set them on a path to success in the ... [+] future. getty As parents, it’s natural we want to help our children save for their futures and build financial literacy. Finding ways to help them save money now in ways that are not only tax-efficient but will grow throughout their lifetime is a generous, strategic … [Read more...] about Opening Roth IRAs For Your Children

If a person will earn 30% of their contributions when they decide to withdraw, this means they will receive around $1,950 from their Roth IRA, but $5,850 from their Roth TSP. So, the earning from Roth TSP is three times as much as that of Roth IRA! The Roth thrift savings plan can, therefore, be more profitable for someone whose income allows them to reach the higher annual … [Read more...] about Roth IRA versus Roth TSP for Federal Employees

Social Security benefits are earned by paying taxes throughout your entire working life. As a result, you may assume that when you start claiming them, you'll get to keep every dollar and won't owe any taxes on the money. The assumption that your benefits are tax free may seem even more logical given that the government is paying out this retirement money. Why, you might … [Read more...] about 2 Situations in Which Your Social Security Could Be Taxable