A Roth IRA provides tax-free withdrawals in retirement, no matter how large your investments have grown. Combined with tax-free compounding on your investments, a Roth IRA can be a powerful tool to build your retirement nest egg early. Anyone can open and start making contributions to a Roth IRA, at any age, as long as […]
A Roth IRA is an individual retirement account that is funded with after-tax income. Roth IRA contributions are NOT tax deductible, you receive no tax breaks for contributing to the plan. This is the trade off you make in exchange for getting tax-free withdrawals in retirement. If you’re looking for a tax deduction on your […]
While a Roth IRA is not meant for saving for college, you’re allowed to withdraw your Roth IRA funds to pay for qualified education expenses like tuition, books, supplies, equipment, and room and board. Yes, both your contributions and earnings from your Roth IRA account can used to pay for college without incurring taxes or […]
Considering getting a Roth IRA for the first time? Anyone with earned income can start contributing to a Roth IRA. Even minors can start compounding their money tax-free from an early age through a custodial Roth IRA. However, a Roth IRA is a retirement account, meaning you’re putting money in an account that ideally should […]
The biggest benefit of a Roth IRA is that you get to take tax-free withdrawals in retirement. You contribute with after-tax income, that money gets invested in your account, and your entire balance (including earnings) can be withdrawn without owing any taxes in retirement. And because there are no capital gains taxes in a Roth […]
More and more Americans are shifting toward freelance work, either on a full-time basis, or as a part-time contractor on the side of their day jobs. Last year, in 2022, over 36% of the US workforce stated that they participated in freelance work. People are attracted by the idea of earning more money, having more […]
OVERVIEW Companies aren’t legally obligated to offer a 401k plan to their employees. However, companies that do offer a 401k plan are legally obligated to fairly offer them to any employee who is at least 21 years of age and has provided at least one year of service at the company. A frequently asked question […]
Self-employed individuals and business owners have access to a wide variety of special retirement plan options designed specifically for them. There are five different retirement accounts you can choose from. While a traditional or Roth IRA can be opened by anyone with earned income, the solo 401k, SEP IRA, and SIMPLE IRA are only for business […]
You’re allowed to contribute to both an employer-sponsored retirement (like a 401k or solo 401k plan) and an IRA (both Roth and traditional) in the same tax year. However, there are some instances where your IRA contributions can get restricted or lose the ability to receive a tax deduction. Are you eligible for a solo […]
