When you’re no longer eligible to participate in a workplace retirement plan, like a 401k or 403b, one of the ways you can preserve the tax-deferred status of your assets and maintain the potential for tax-free growth is to rollover your funds to a rollover IRA. A rollover IRA is a type of IRA that […]
Most people are aware of the traditional and Roth IRAs since they’re the most popular and most accessible retirement plan out there. Any individual with earned income can make contributions to a traditional or Roth IRA at any age. While the Roth IRA does come with income limits, there’s still an easy workaround, called the […]
A Roth IRA or traditional IRA allows individuals with earned income during a tax year to make contributions into their accounts. A spousal IRA is a traditional or Roth IRA that allows a married couple to contribute to an IRA for a spouse who has little or no income, as long as the couple files […]
There are two main types of IRAs: Traditional and Roth. What is a non-deductible IRA? A non-deductible IRA is a special type of traditional IRA where contributions are actually made with post-tax dollars. You don’t get any tax deductions on your contributions, and withdrawals of your earnings in retirement are also taxed as regular income. […]
For the past several years, investing in NFTs through a retirement plan has been somewhat of a gray area. The reason is that the IRS has never officially clarified whether they were considered an asset or a collectible, which would not be allowed as an investable asset class in a retirement plan. Still, because the […]
A Roth IRA three different growth components: Let’s go through each one below. Growth component #1: Your contributions The first way your Roth IRA grows is when you make annual contributions to your account. With a Roth IRA, you’re allowed to contribute up to $6,500 for 2023, or up to $7,500 if you’re at least […]
Investing in crypto through a Roth IRA is possible, but usually not through a regular Roth IRA that you find at major banks and institutions. You’ll have to find a special type of Roth IRA known as a self-directed Roth IRA. Why use a Roth IRA to invest in crypto? A Roth IRA gives you […]
Yes, contributions made to a traditional pre-tax 401k are tax deductible. The amount you contribute gets deducted from your taxable income for the tax year. For 2023, it’s possible to deduct up to $22,500 ($30,000 if age 50+) in taxable income through 401k contributions. However, it’s important to note that contributions made to a Roth […]
Yes, rollovers between retirement accounts generally need to be reported to the IRS, although the reporting requirements and tax implications differ depending on the type of rollover (direct or indirect). Reporting direct rollovers In a direct rollover, the funds move directly from one retirement account to another without the account holder taking possession of the […]
