IRAs

An Individual Retirement Account (IRA) that you contribute after-tax monies to is known as a Roth IRA. While there are no tax benefits in the current year, your contributions and earnings can grow tax-free, and you can take them tax- and penalty-free after reaching the age of 591/2 and having the account open for five […]

An individual retirement account (IRA) is a tax-advantaged strategy to save money for retirement. An Individual Retirement Account (IRA) is a financial institution account that allows a person to save for retirement with tax-free growth or on a tax-deferred basis. Is an IRA a good investment? It’s also worth noting that IRAs are a good

Roth IRAs, unlike ordinary savings accounts, do not earn interest on their own. A Roth IRA account begins as an empty investment basket, which means you won’t earn any interest unless you choose investments to place within the account. Compound interest is earned on Roth IRAs, which allows your money to grow faster. Any dividends

Starting at age 72 (age 701/2 if you reached age 701/2 before 2020) or after inheriting any IRA account for certain particular beneficiaries, the IRS requires that most IRA owners remove a portion of their tax-deferred investments each year. A necessary minimum distribution is the name for this type of withdrawal (RMD). If you take

Contribution restrictions for various retirement plans can be found under Retirement Topics – Contribution Limits. For the years 2022, 2021, 2020, and 2019, the total annual contributions you make to all of your regular and Roth IRAs cannot exceed: For any of the years 2018, 2017, 2016, and 2015, the total contributions you make to

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

Contribution restrictions for various retirement plans can be found under Retirement Topics – Contribution Limits. For the years 2022, 2021, 2020, and 2019, the total annual contributions you make to all of your regular and Roth IRAs cannot exceed: For any of the years 2018, 2017, 2016, and 2015, the total contributions you make to

Contributions to a Roth IRA are made after taxes. Keep in mind, though, that your ability to contribute to a Roth IRA is determined by your income level. To contribute to a Roth IRA as a single person, your Modified Adjusted Gross Income (MAGI) must be less than $139,000 for the tax year 2020 and

Contribution restrictions for various retirement plans can be found under Retirement Topics – Contribution Limits. For the years 2022, 2021, 2020, and 2019, the total annual contributions you make to all of your regular and Roth IRAs cannot exceed: For any of the years 2018, 2017, 2016, and 2015, the total contributions you make to

RMDs are minimal sums that a retirement plan account owner must withdraw each year beginning with the year in which he or she becomes 72 (70 1/2 if you turn 72 before January 1, 2020) or, if later, the year in which he or she retires. If the retirement plan account is an IRA or