To figure out your RMD, go to the IRS website and look for IRS Publication 590. The RMD tables (sample below) that you will use to compute your RMD are included in this document. Then follow these instructions: Subtract your current life expectancy factor from your retirement account balance as of December 31 of the […]

If you expect to have a better income in retirement than you do today, a Roth IRA or 401(k) is the best option. A regular IRA or 401(k) is likely the better bet if you expect your income (and tax rate) to be lower in retirement than it is now. A typical IRA permits you

If your income falls within the restrictions, you may be able to deduct your contributions to a traditional IRA. Is a traditional IRA tax-deductible? Making an IRA contribution and deducting it Contributions to a regular IRA may be tax deductible. If you or your spouse is protected by a workplace retirement plan and your income

A Roth IRA is a type of individual retirement account in which you pay taxes on the money you put into it but not on any future withdrawals. When you think your marginal taxes will be greater in retirement than they are today, Roth IRAs are the way to go. If you earn too much

A Roth IRA is a type of individual retirement account that allows for tax-free growth and withdrawals when you retire. According to Roth IRA guidelines, as long as you’ve had your account for 5 years* and are 591/2 or older, you can withdraw your money whenever you choose and pay no federal taxes.** What is

The total amount of IRS Form 1040-line 4a minus 4b is the amount of untaxed IRA distributions and pensions (exclude any rollover amounts from the total). What is untaxed IRA distribution? The total amount of IRS Form 1040-line 4a minus 4b is the amount of untaxed IRA distributions and pensions (exclude any rollover amounts from

It’s never too early to start thinking about retirement, no matter what stage of life you’re in, because even tiny decisions you make now can have a major impact on your future. While you may already be enrolled in an employer-sponsored retirement plan, an Individual Retirement Account (IRA) allows you to save for retirement on

It’s never too early to start thinking about retirement, no matter what stage of life you’re in, because even tiny decisions you make now can have a major impact on your future. While you may already be enrolled in an employer-sponsored retirement plan, an Individual Retirement Account (IRA) allows you to save for retirement on

In 2019, converting a $100,000 regular IRA to a Roth account would result in nearly half of the excess income being taxed at 32 percent. However, if you split the $100,000 conversion 50/50 between 2019 and 2020 (as is allowed), all of the increased income from the conversion would most likely be taxed at a

If you remove money from a regular IRA, SEP IRA, Simple IRA, or SARSEP IRA, you will owe taxes at your current tax rate. If you’re in the 22% tax bracket, for example, your withdrawal will be taxed at that rate. If you keep your money in a typical IRA until you reach another important