There are many different kinds of IRAs, each with its own set of rules and benefits. A traditional IRA and Roth IRA are the most similar. They have the same contribution limits and eligibility rules, but only really differ in when and how they get taxed. A SEP IRA is actually closer in function to […]
Two of the most popular types of retirement accounts are the 401k and the IRA. They both offer tax advantages but have different eligibility rules, contribution limits, withdrawal rules, and investment options. Main differences between a 401k and IRA The rest of the article below will expand on these differences. Eligibility differences A 401k is an employer sponsored plan and […]
Retirement accounts like a 401k or solo 401k allow you to take out a loan from your account. Unfortunately, there’s no such thing as an IRA loan. However, there are work arounds that allow you to temporarily access your IRA funds that work similarly to taking out a loan. With a 401k loan, you’re allowed […]
With a traditional IRA, your contributions are deducted from your taxable income, and investments in your account get tax-deferred until retirement. The IRS doesn’t let you take money out of a traditional IRA without penalties until you reach the age of 59½. You’re also required to take minimum distributions from your account once you reach the […]
OVERVIEW What is a traditional IRA? A traditional IRA is a type of individual retirement account (IRA) where you contribute with pre-tax dollars and get a tax deduction every year you contribute to your account. Your investments grow in your account tax-deferred until retirement. When you take withdrawals at the eligible withdrawal age of 59½, […]
OVERVIEW What is an IRA? IRA stands for Individual Retirement Arrangement, and is a tax-advantaged investment account available for anyone with earned income. They’re especially useful for people who don’t have access to an employer-sponsored 401k plan at work. There are many different types of IRAs, with the two most popular being the traditional and […]
OVERVIEW An IRA overcontribution occurs when you contribute more money to your Individual Retirement Account (IRA) than the IRS allows in a given year. This can happen if you make a mistake when calculating your contribution, or if you change your mind about how much you want to contribute. If you contribute more than the […]
An IRA is a tax-deferred retirement account for individuals. Depending on the type of IRA you choose, contributions could be tax-deductible or withdrawals could be tax-free. There are three main IRAs that you could consider rolling over into a solo 401k. There’s also the Roth IRA, which allows Roth contributions: you make contributions with after-tax dollars, […]
