Tax-advantaged retirement accounts such as 401(k) plans and IRAs are intended to promote long-term retirement savings and thus offer preferential tax treatment in return for a commitment to keep savings in the account until at least age 59½. Withdrawals before that age may be subject to a 10% federal income tax penalty on top of
The bulk of Social Security benefits go to retirees, but Social Security is much more than a retirement program. Most Americans are protected by the Old-Age, Survivors, and Disability Insurance (OASDI) program — the official name of Social Security — throughout their lives. Current Social Security Beneficiaries Source: Social Security Administration, 2023 At the Beginning
If you are age 50 or older and still working, you have a valuable opportunity to super-charge your retirement savings while managing your income tax liability. Catch-up contributions offer the chance to invest amounts over and above the standard annual limits in IRAs and workplace retirement plans. 2023 Limits In 2023, the IRA catch-up limit
Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2023. Estate, Gift, and Generation-Skipping Transfer Tax The annual gift tax exclusion (and annual generation-skipping transfer tax exclusion) for 2023 is
$45.97 – Average monthly price of the most popular broadband internet packages, with download speeds of about 98 Megabits per second. It’s estimated that nearly 40% of U.S. households (48 million) may qualify for a new federal program that provides a subsidy of $30 per month to help cover high-speed internet. For more information, visit
Here are some things to consider as you weigh potential tax moves before the end of the year. Set Aside Time to Plan Effective planning requires that you have a good understanding of your current tax situation, as well as a reasonable estimate of how your circumstances might change next year. There’s a real opportunity
The passage of the SECURE Act in 2019 effectively eliminated the stretch IRA, an estate planning strategy that allowed an inherited IRA to continue growing tax deferred, potentially for decades. Most nonspouse beneficiaries, including children and grandchildren, can no longer stretch distributions over their lifetimes. Moreover, proposed IRS regulations require most designated beneficiaries to take
If you worry about your retirement investments during market downturns, you’re not alone. Unfortunately, emotions are often the enemy of sound investing. Here are some points to help you stay clear-headed during periods of market volatility. Markets Rebound Historically, even the worst bear market has bounced back and eventually gone on to reach new highs.
Throughout your life, your financial needs will change and life insurance can help you meet some of those needs. But how much life insurance do you need? There are a number of approaches to help determine how much life insurance you should have. Here are three of those methods. Family Needs Approach With this approach,
John D. Rockefeller, one of the wealthiest Americans in history, loved receiving stock dividends. “Do you know the only thing that gives me pleasure?” he once asked. “It’s to see my dividends coming in.”1 There may be many things other than money that give you pleasure, but you can still appreciate the stabilizing role that
