New option for unused funds in a 529 college savings plan

New option for unused funds in a 529 college savings plan

0 Comments

529 unused funds

With the high cost of college, many parents begin saving with 529 plans when their children are babies. Contributions to these plans aren’t tax deductible, but they grow tax deferred. Earnings used to pay qualified education expenses can be withdrawn tax-free. However, earnings used for other purposes may be subject to income tax plus a 10% penalty.
Continue Reading: New option for unused funds in a 529 college savings plan

If you didn’t contribute to an IRA last year, there’s still time

0 Comments

IRA Contribution

If you’re gathering documents to file your 2023 tax return and you’re concerned that your tax bill may be higher than you’d like, there might still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the April 15, 2024, filing date and benefit from the tax savings on your 2023 return.

Continue Reading: If you didn’t contribute to an IRA last year, there’s still time

IRAs: Build a tax-favored retirement nest egg

0 Comments

traditional IRA

Although traditional IRAs and Roth IRAs have been around for decades, the rules involved have changed many times. The Secure 2.0 law, which was enacted at the end of 2022, brought even more changes that made IRAs more advantageous for many taxpayers. What hasn’t changed is that they can help you save for retirement on a tax-favored basis. Here’s an overview of the basic rules and some of the recent changes.

Continue Reading: IRAs: Build a tax-favored retirement nest egg

Retirement account catch-up contributions can add up

0 Comments

retirement contribution

If you’re age 50 or older, you can probably make extra “catch-up” contributions to your tax-favored retirement account(s). It is worth the trouble? Yes! Here are the rules of the road.

Continue Reading: Retirement account catch-up contributions can add up

Are you married and not earning compensation? You may be able to put money in an IRA

0 Comments

spousal IRA

When one spouse in a married couple is not earning compensation, the couple may not be able to save as much as they need for a comfortable retirement. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a “spousal” IRA. It allows contributions to be made for a spouse who is out of work or who stays home to care for children, elderly parents or for other reasons, as long as the couple files a joint tax return.

Continue Reading: Are you married and not earning compensation? You may be able to put money in an IRA

There still may be time to make an IRA contribution for last year

0 Comments

IRA contribution 2022

If you’re getting ready to file your 2022 tax return, and your tax bill is higher than you’d like, there may still be an opportunity to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA right up until this year’s April 18 filing deadline and benefit from the tax savings on your 2022 return.

Continue Reading: There still may be time to make an IRA contribution for last year

Year-end tax planning ideas for individuals

0 Comments

lower tax bill

Now that fall is officially here, it’s a good time to start taking steps that may lower your tax bill for this year and next.

Continue Reading: Year-end tax planning ideas for individuals

Is it a good time for a Roth conversion?

0 Comments

Roth Conversion

The downturn in the stock market may have caused the value of your retirement account to decrease. But if you have a traditional IRA, this decline may provide a valuable opportunity: It may allow you to convert your traditional IRA to a Roth IRA at a lower tax cost.

Continue Reading: Is it a good time for a Roth conversion?

There still may be time to cut your tax bill with an IRA

0 Comments

IRA annual contribution

If you’re getting ready to file your 2021 tax return, and your tax bill is more than you’d like, there might still be a way to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA right up until the April 18, 2022, filing date and benefit from the tax savings on your 2021 return.

Continue Reading: There still may be time to cut your tax bill with an IRA