A Roth IRA is completely funded with after-tax dollars you’ve already paid incomes taxes on. The money in your account compounds tax-free, and withdrawals in retirement also never get taxed. While the contribution limits of a Roth IRA are fairly low compared to other retirement accounts (like the solo 401k), the withdrawal rules are more lenient. Every retirement […]
A 401k is typically one of the last places you want to withdraw money because they’re so tax-advantaged. You’re depleting money from an account that offers you tax-free compounding, deferred until retirement (or completely tax-free with a Roth 401k). When you take money out early (before the age of 59½) it’s regarded as a nonqualified […]
A question we get often is: When can I withdraw from my IRA or 401k without penalties? Retirement accounts like a traditional and Roth IRA, and a 401k, generally have an early distribution penalty tax of 10% when you take a withdrawal before the eligible withdrawal age of 59½. Roth IRAs have an additional 5-year […]
A Roth IRA is one of the most tax-advantaged retirement plans available to individual income earners. Its biggest benefits are that you can withdraw your contributions at any age without taxes or penalties, and all withdrawals in retirement (both contributions and earnings) are also completely tax-free. What this means: Let’s say you contributed $10,000 into […]
Most people are in the dark when it comes to how their tax returns compare with others. If you received a tax refund and want to know if you received more or less than the average American, we’ll go through all the most interesting tax filing and income tax statistics in recent years including: We’ll […]
An HSA works similarly to a retirement account, but comes with unique tax advantages not available with other plans. To compare, let’s also look at the traditional and Roth IRA. HSA withdrawal rules Qualified withdrawals You can make tax-free withdrawals from your HSA at any age to pay for qualified medical expenses. Nonqualified withdrawals If […]
An HSA (Health Savings Account) offers you a triple tax-advantaged way to save for your medical expenses. In many ways, it works similarly to a retirement plan. You make contributions to your account with pre-tax income and receive a tax deduction for the tax year, like a traditional IRA. The money in your HSA can […]
An HSA, or Health Savings Account, is a type of tax-advantaged savings account that is designed to help individuals with high-deductible health insurance plans (HDHPs) save for medical expenses. It lets you contribute money on a pre-tax basis (with income you haven’t paid taxes on yet) to pay for medical expenses like dental work, vision […]
Whenever you take a distribution from a retirement that exceeds a value of $10, you’ll get Form 1099-R, Distributions From Pensions, Annuities, Retirement, or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. The form is an information return and reports your passive income and distributions from retirement plans such as annuities, profit-sharing plans, retirement plans, individual retirement […]
