Personal saving
Family members can make a tax-free of charge rollover from 529 options to Roth personal retirement accounts starting in 2024
Vital Factors The $1.7 trillion federal omnibus paying offer has a provision that lets tax-free rollovers of revenue in 529 strategies to Roth specific retirement accounts commencing in 2024. 529 money are earmarked for schooling bills like college tuition. Withdrawing cash for a non-qualifying rationale typically carries money taxes and a 10% tax penalty on […]
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This ‘wild card’ strategy can help retirees with unpaid quarterly taxes before year-end
Sdi Productions | E+ | Getty Images If you’re retired and skipped your 2022 tax payments, you can still avoid late penalties with an under-the-radar year-end strategy, experts say. Since taxes are due as you receive income, you must withhold levies from earnings or pay quarterly estimated tax payments. You may owe quarterly taxes if […]
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There’s still time to reduce your 2022 tax bill with these last-minute moves
‘Take lemons and make lemonade’ with tax-loss harvesting With the S&P 500 Index down nearly 20% for 2022 as of mid-day on Dec. 19, it may be a good time for tax-loss harvesting, which allows you to offset brokerage account profits with losses, Roberge said. After reducing your 2022 investment gains, you can use additional […]
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Op-ed: Here are 5 questions to ask your financial advisor before the end of the year
Delpixart | Istock | Getty Images The end of the year is a time to give thanks and celebrate the holidays with our families. It’s also an opportunity to reevaluate the previous 12 months and ask your financial advisor some very productive questions. 1. What’s your investment decision process? We often judge the merits of […]
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Tax pros ‘expecting the worst’ with Venmo, PayPal tax reporting change. How to handle a 1099-K for personal payments
AsiaVision | E+ | Getty Images As the tax season approaches, many Americans are bracing for a new reporting change for third-party payment networks like Venmo or PayPal. Starting in 2022, you’ll receive Form 1099-K, which reports income to the IRS, for business payments over $600. But experts say it’s possible you’ll receive 1099-Ks for […]
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88% of employers give a Roth 401(k) — just about twice as numerous as a ten years in the past. Here’s who stands to profit
Important Factors About 88% of 401(k) designs permitted workforce to help save in a Roth account in 2021, nearly double the share a decade earlier, in accordance to the Strategy Sponsor Council of The usa. Just about 28% of personnel participating in a 401(k) prepare produced Roth contributions in 2021, up from 18% in 2016. […]
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This 529 savings plan myth is making college pricier for families, consultant says: ‘It’s candidly, blatantly not true’
Kevin Dodge | The Image Bank | Getty Images SEATTLE — For many families, paying for college is a financial burden, and experts say education-funding myths may be adding to the student loan debt crisis. “There’s often this perception that somehow people are being penalized for saving for college,” said Cozy Wittman, national education and […]
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Here’s why salaries in the U.S. don’t keep up with inflation
Inflation in the United States hit a record high in June 2022. Consumer prices soared by 9.1% compared with a year prior — the largest annual increase since 1981. While wages are rising, they’re not keeping up with inflation. Wage growth has been consistent with an inflation rate of about 4.5%. Meanwhile, as of November, […]
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‘It could be a blessing and a curse.’ Here are 3 unexpected financial pitfalls unmarried couples need to know
Petri Oeschge | Getty Images SEATTLE — If you’re living together before marriage or committed long-term without plans to tie the knot, you’ll need to prepare for the future — or you may face challenges later, experts say. There are “rising rates of cohabitation,” with many couples skipping marriage because “they don’t see the benefit,” […]
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‘Early filers’ should wait to submit their tax return in 2023, the IRS warns. Here’s why
If you’re eager to file your 2022 tax return in January or early February, the IRS has a warning: You’ll need to wait for “key documents” before filing in 2023. In a release last week, the IRS urged “early filers” to watch for Form 1099-K, which reports income for third-party payment networks such as Venmo […]
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