The Money Farm Team

As long as they have earned income, children of any age can contribute to a Roth IRA. The child’s custodial Roth IRA must be opened by a parent or another adult. Custodial IRAs aren’t available from all online brokerage firms or banks, but Fidelity and Charles Schwab do. Can a family member contribute to my […]

Spouses cannot own an IRA together. It can only be held in the name of one person. However, depending on your goals, appointing the accountholder’s spouse as power of attorney could be a viable option. When activated, a restricted power of attorney allows the spouse to make transactions within the account, while a complete power […]

Deposit accounts held in a regular or Roth IRA are insured by the FDIC and NCUA. Deposits in SEP-IRAs and SIMPLE-IRAs are also insured by the FDIC. For insurance purposes, the agencies treat all IRAs you own at a single financial institution as a single account. For example, if you owned $100,000 in a Roth […]

As an adjustment to income, you can deduct a portion of the self-employment tax you paid. As a result, even if you don’t itemize deductions, you can claim the deduction. Use Form 1040 to claim the deduction as an adjustment to your gross income. A new deduction was provided by the Small Business Jobs Act […]

Each eligible employee may contribute to a pay decrease, and the company must make one of the following contributions: Can contributions made under a SIMPLE IRA plan be made to any type of IRA? A SIMPLE IRA contribution can only be made to a SIMPLE IRA, not to any other type of IRA. What is […]

Your contributions to your SIMPLE IRA are “pre-tax,” which means that no federal income tax is withheld until the money is deposited into the SIMPLE IRA. The contributions are not shown as earnings or other income on your W-2 form, and you do not record them as such on your annual tax return. Business partners […]

Contributions to a SIMPLE IRA are not subject to federal income tax withholding. Salary reduction contributions, on the other hand, are subject to social security, Medicare, and FUTA taxes. These taxes do not apply to matching and non-elective contributions. Employer contribution deductions must be reported. Contributions to a SIMPLE IRA plan can be deducted by […]

Your contributions to your SIMPLE IRA are “pre-tax,” which means that no federal income tax is withheld until the money is deposited into the SIMPLE IRA. The contributions are not shown as earnings or other income on your W-2 form, and you do not record them as such on your annual tax return. Business partners […]

ERISA does not stand for “Every Ridiculous Idea Since Adam,” contrary to popular belief. Instead, it stands for the Employee Retirement Income Security Act of 1974, which is an acronym. The Employee Retirement Income Security Act of 1974 (ERISA) is a federal legislation that governs employer-sponsored retirement and health plans. (Because IRAs are not sponsored […]

A SIMPLE IRA (Savings Incentive Match Plan for Employees Individual Retirement Account) is a form of tax-deferred employer-provided retirement plan in the United States that allows employees to lay money aside and invest it to grow for retirement. It’s a specific kind of Individual Retirement Account (IRA) that’s set up as an employer-sponsored plan. It […]