IRAs

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 […]

On the sixth calendar month after your 70th birthday, you achieve the age of 701/2. For instance, your 70th birthday fell on June 30, 2019. On December 30, 2019, you became 70 1/2 years old. By April 1, 2020, you must have taken your first RMD (for 2019). For instance, your 70th birthday fell on

On December 20, 2019, the SECURE Act (Setting Every Community Up for Retirement Enhancement) became law. The RMD rules were significantly altered by the Secure Act. If you turned 701/2 in 2019, the previous rule applies, and your first RMD must be taken by April 1, 2020. If you turn 70 1/2 in 2020 or

On December 20, 2019, the SECURE Act (Setting Every Community Up for Retirement Enhancement) became law. The RMD requirements were significantly altered by the Secure Act. If you turned 701/2 in 2019, the previous rule applies, and your first RMD must be taken by April 1, 2020. If you turn 70 1/2 in 2020 or

In a Roth IRA, the term basis is occasionally used to refer to the amount of monies contributed. You’ve already paid taxes on the money because Roth donations aren’t tax deductible. As a result, you can consider your Roth contributions to be your IRA basis because withdrawn funds are not taxed. You can, however, remove

For someone filing as single, head of household, or married and filing separately (and you didn’t live with your spouse at any point during the year), the reduced limit is computed as follows. What percentage should I contribute to my Roth IRA? According to most financial planning research, the recommended contribution percentage for saving for

For someone filing as single, head of household, or married and filing separately (and you didn’t live with your spouse at any point during the year), the reduced limit is computed as follows. What percentage should I contribute to my Roth IRA? According to most financial planning research, the recommended contribution percentage for saving for

Investing in a Roth IRA can significantly increase your retirement savings. Contributions to a Roth IRA do not qualify for a tax deduction, but all future earnings are tax-free. The Roth IRA allows you to grow your money tax-free. To figure out how much you can save for retirement, use our Roth IRA calculator. How

Contributing to a Roth IRA is also contingent on your entire income. The IRS imposes income limits on high-earners. Your modified adjusted gross income (MAGI) and tax-filing status determine the restrictions. MAGI is computed by subtracting deductions for things like student loan interest, self-employment taxes, and higher education expenses from your adjusted gross income (AGI).

If you are self-employed (either as a solo proprietor or as a working partner in a partnership or limited liability company), you must compute your retirement plan contributions using an unique rule. Contributions to retirement plans are frequently computed using member compensation. You might opt to pay 10% of each participant’s compensation to your SEP