2021 Roth IRA Contribution and Income Limits plus Conversion Rollover Rules

[Updated with latest Roth IRA limits] The latest income phase out ranges for the deductibility of Roth IRA contributions are shown in the table below. This also includes changes for 2021, per official IRS guidance. Contribution limits have remained unchanged, while income threshold limits to get a contribution tax deduction …

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5 Reasons I Max Out My 401k Retirement Account as Fast as I Can – The 25% Contribution Rule

Every year around November when the IRS publishes updated 401k plan limits for the year ahead I set myself a goal to see how fast I can reach the maximum contribution limit. I am fortunate that I earn and save enough money to make the maximum pre-tax retirement account contributions, but …

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Contributing to an IRA and Roth IRA if You Already Have a 401K – 2021 and 2022 Non Deductible IRA and Maximum Tax Deductible Contributions

“Can I Contribute to an IRA, Roth IRA and a 401K if I have access to all these accounts? What are the limits and rules of doing so?” This is the kind of question I get fairly often and one that I actually had to recently sort out for myself. To determine …

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2016 to 2017 Retirement Plan Contributions and Conversions – How to Reduce your Taxable Income

In this article we will discuss Retirement Plan Contributions and Conversions and how these can reduce your taxable income in the current tax year. The last business day of 2016 is December 30th, so there is still time to make changes to your contributions to achieve the greatest reduction in your …

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The Best Retirement Plans for Young Workers And How Much You Should Be Contributing

It’s not breaking news that you should be saving for retirement. Most employed people understand this fact, so hopefully, you are setting some cash aside for your golden years despite your day to day living expenses. The tricky part of retirement financial planning is figuring out how much you should …

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2017 COLA Increase Will Result in a Tax Hike For Over 12 Million American Workers

[2017 COLA update] Its been a few years with relatively minor COLA (cost-of-living-adjustment) increases but even with the marginal 2017 COLA increase of 0.3%, over 12 million Americans will pay higher taxes in 2017 as the maximum taxable earnings (wage base) subject to social security also increased from $106,800 to $110,100. You can see the previous …

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Traditional IRA versus Roth IRA – Contribution and Phase-out Income Limits

I regularly receive reader questions asking me to clarify the difference between a Roth IRA and Traditional IRA plan. Both are excellent retirement investment vehicles, but based on your income and tax situation one may be a better first choice than the other. Shown below is a table with some key differences …

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