Category: Taxes and Retirement

An interesting study by the Congressional Budget Office (CBO) provided some very telling graphics around income distribution changes relative to which groups paid the most in taxes. Amazing how politicians can both take the same data and spin it in different ways. The first graphic shows the cumulative growth in…

[Updated] Will i still have to pay health insurance penalties (under the Obamacare individual mandate)? This is the question a lot of Americans are asking. The short answer is NO from 2019.  Here is why the individual mandate, a.k.a Obamacare penalty, is no longer in effect from 2019: While Congressional Republicans…

I've written a fair bit on tax-advantaged individual retirement plans, but still keep getting lots of questions on this topic. This is likely due to two main factors. One, thanks to the complexities of our tax code, it is not always easy to find current and applicable IRA information. Secondly,…

[2013 Update] With a deal to avert the fiscal cliff reached and legislated under the American Taxpayer Relief Act (ATRA) of 2012, a couple of significant employer sponsored retirement plan features have reappeared with some modifications. This includes the Roth 401(k) conversion and Charitable IRA contributions. You can read more…

With the 2011 tax filing deadline past (unless you filed for an extension) it's a good time to remind yourself about some key 2012 tax changes. You can see the latest 2012 tax tables here which saw a widening of tax brackets and increases in personal exemptions and standard deductions…

Can you open a Roth IRA for your spouse? This question comes up a lot among married couples with just one income. After all, one of the requirements for opening and funding a Roth IRA is earned income, right? And as a general rule, if you don't have taxable earned…

If you are looking for a common and highly effective way to cut your tax bill for this year and/or the next, then consider opening a Traditional IRA or Roth IRA before the IRA contribution deadline. The following brokers have great offers for those looking to open or transfer an…

Living abroad? Great! But remember, your tax obligations don't vanish. Uncle Sam still wants his cut, regardless of where you earn your income. This post outlines the key changes the IRS has made for reporting foreign income, helping you avoid those "pretty stiff penalties" they mentioned. Reporting Your Worldwide Income:…

[Updated with 2013 IRS inflation adjusted tax brackets and fiscal cliff changes] Congress and the Obama administration's fiscal cliff deal (ATRA act) means that 2013 federal tax rates will remain fixed for nearly 99% of the population. Only those earning above $450,000/$400,000 (married/single) AGI will have a higher federal marginal tax rate in…

[Updated with current limits] Catch-up contributions allow people who feel that they do not have enough of a nest egg to make higher retirement plan contributions as they approach retirement. If you are over or turning 50 in a given calendar year you are eligible to make additional or catch-up contributions…

For those who have money stashed away in an employer sponsored 401(k) retirement account, there are a number of options they can take with those funds when they move on from their current place of employment. However, before initiating any of these choices, it’s important to understand the pros and…

GOP presidential candidate Mitt Romney and his wife paid a 14% effective income tax rate in 2010 on nearly $22 million of income. Given the marginal federal income tax rate for anyone making over $35,350 (single) or $70,700 (married) is higher than 15%, it is pretty clear that the Romney's…

Have you considered using your Roth IRA as an emergency fund or as a source for getting some cash to cover an unexpected expense? In this era of tight budgets and volatile stock markets, a lot of people are finding it difficult (if not impossible), to save for retirement and…