Although bank IRAs are a secure way to save for retirement, they aren’t the best option for most investors. Because you’re investing your retirement funds for the long haul — with the goal of someday being able to retire comfortably — you’ll need larger returns than you’ll find at a bank. This is why you […]

The advantages of a traditional IRA may be more valuable to you than the advantages of a Roth IRA, depending on your circumstances. It’s worthwhile to spend some time deciding between the two. Here’s a rundown of the major advantages of IRA investment in general, and regular IRAs in particular. The tax deduction for contributions,

The median U.S. household net worth is $121,700, according to the most current study released in September 2020 (based on data collected in 2019), but it’s more than double that for persons aged 65 to 74. According to the Federal Reserve, Americans in their late 60s and early 70s had a median net worth of

After you reach the age of 72, you must begin taking annual Required Minimum Distributions from your retirement account. The amount is calculated by multiplying your age and life expectancy by the fair market value of your IRAs at the end of the preceding year. How do I calculate my required minimum distribution? Simply divide

A Roth IRA is a tax-deferred retirement savings account that allows you to grow your money without paying taxes. After-tax dollars are used to fund a Roth, which means you’ve already paid taxes on the money you put into it. In exchange for no tax cut up front, your money grows tax-free, and you pay

The method of distribution will be determined by the date of death of the original IRA owner and the kind of beneficiary. If the IRA owner’s RMD obligation was not met in the year of his or her death, you must take an RMD for that year. For an inherited IRA from a decedent who

The Roth IRA is a special form of investment account that allows future retirees to earn tax-free income after they reach retirement age. There are rules that govern who can contribute, how much money can be sheltered, and when those tax-free payouts can begin, just like there are laws that govern any retirement account —

The method of distribution will be determined by the date of death of the original IRA owner and the kind of beneficiary. If the IRA owner’s RMD obligation was not met in the year of his or her death, you must take an RMD for that year. For an inherited IRA from a decedent who

The five-year rule for Roth IRA distributions states that you must wait five years from the tax year of your first Roth IRA deposit to be able to withdraw the account’s gains tax-free. Remember that the five-year clock starts ticking on January 1st of the year you originally contributed to the account. It’s also worth

The initial five-year rule specifies that you must wait five years after making your first Roth IRA contribution before withdrawing tax-free gains. The five-year term begins on the first day of the tax year in which you contributed to any Roth IRA, not just the one from which you’re withdrawing. So, if you made your