What are the tax implications of an inherited traditional IRA? Tax rules differ depending on whether or not the beneficiary is a spouse. Be sure you know the rules, because your decisions may have serious tax consequences.
Individual retirement accounts help workers, especially those without access to employer-based plans, save for retirement. Anyone with earned income from a job claimed for tax purposes or who has a spouse with earned income can open and contribute to an IRA. Lawmakers designed these accounts to promote retirement savings and receive big tax savings, but added restrictions to discourage early withdrawals, making it harder to raid your life savings.
Real estate can be a great investment, and many people don't know they can also put property into their IRAs. However, they have to be careful: one small mistake and an IRA's tax advantages disappear.
An employer-sponsored retirement plan can be a great way for employers to show workers they care about employees' long-term financial prospects while giving workers a way to save on their taxes.
The IRS has announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019.
Funds in an IRA aren't subject to creditors' claims — it's said they are exempt from inclusion in the bankruptcy estate. This rule is meant to help debtors who go through bankruptcy to get a fresh start. But when an IRA owner dies and the account is inherited and that person files for bankruptcy, does the rule still hold?
A Simplified Employee Pension IRA was designed to encourage retirement benefits in businesses that would otherwise not set up employer-sponsored plans. Sole proprietors, partnerships and corporations — even S corporations — can establish SEPs. SEP IRAs can receive employer contributions but with a higher annual contribution limit than standard IRAs. Think of a SEP IRA as a traditional IRA that lets employer contributions be vested immediately.
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