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February 24, 2021 8:33 AM Kemberley Washington - Forbes Advisor
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February 27, 2021 4:36 AM
Retirement plans offer a host of benefits, from lower taxes to automated saving. But Uncle Sam makes you pay for these benefits, eventually, by requiring you withdraw money from your account whether you need it or not.
When you turn 72, required minimum distributions (RMDs) begin for most tax-advantaged retirement plans. In year one, they usually amount to around 3.6% of your account balance, then increase to an average of about 6.5% of your balance. If you skip an RMD, you could be on the hook for an Internal Revenue Service (IRS) penalty equal to 50% of that year’s RMD amount.
Have you been told you aren t eligible to make Roth IRA contributions? Your income may be above the thresholds to contribute directly to a Roth account. However, that may not be the end of the story.
January 17, 2021 10:00 AM newsfeedback@fool.com (Sam Swenson, CFA, CPA)
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January 19, 2021 9:20 AM
The turn of the calendar from 2020 to 2021 is nothing more than a flip of the proverbial page, but your CPA may beg to differ. 2021 marks the start of a new accounting period, which in and of itself can bring a flurry of confusion to the average taxpayer. Given that we still have a few months until tax returns are due, it’s advisable to think now about how you can lower your 2020 tax liability even though 2020 has already come to a close. Below we’ll explore a popular way you can lower your taxes due contributing to a traditional IRA.
It’s Time For Your End-Of-Year Investing Checkup
December 17, 2020 10:46 AM Emily Guy Birken - Forbes Advisor
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December 19, 2020 6:06 AM
With the new year just around the corner, this is the right time to give your investment and retirement accounts a checkup. As of writing, the S&P 500 is up over 60% from its spring plunge so despite the malaise and volatility of 2020, the markets haven’t had a terrible year. Nevertheless, the tumultuous year means your portfolio could probably use rebalancing, and it might be worth considering end-of-year moves that could slash your tax bill.
1. Review Your Investment Goals
Begin by taking some time to review your investing and retirement goals. You may have hit a few milestones this year, so revising your list of goals for the year ahead will help you understand where you need to focus your attention.