Key Takeaways You may be able to take out a penalty-free loan from your 401(k) to buy a home, but you’ll still owe taxes on the amount you withdraw. Withdrawals over the limit or that don’t qualify for penalty-free withdrawal are still subject to a 10% penalty for borrowers under 59 ½. The amount you’ll…
Key Takeaways Delaying IRA contributions can lead to missed investment growth and result in a procrastination penalty. Automating contributions can prevent procrastination, as can establishing a retirement savings budget. Catch-up contributions for investors aged 50 and older can accelerate retirement savings. Delaying IRA contributions can result in an opportunity cost of over $100,000 in potential…
Key Takeaways Workers age 50 and older can take advantage of 401(k) catch-up contributions, allowing them to contribute up to $7,500 more than younger participants. In 2024, you can put in up to $30,500 if you meet the requirements. You can receive tax benefits through catch-up contributions, especially if you set aside the maximum amount,…
The focal point of the image, identified as IRAS 16562-3959, is nestled within the Milky Way galaxy approximately 5,900 light-years away in the Scorpius constellation, as stated in the official release. According to the release, “At the center of the image, IRAS 16562-3959 likely hosts a massive star – about 30 times the mass of…
Key Takeaways: The SECURE 2.0 Act changed the age for starting required minimum distributions (RMDs) to 73 in 2023, and it will increase to 75 in 2033. Depending on your income level, premium costs could increase once withdrawals begin, and your taxes could be higher. Missing an RMD could lead to a penalty, though the…
Key Takeaways: Roth IRAs enable retirement savers to generate tax-free earnings. Income limits apply to Roth IRAs. Unlike a traditional IRA, contributions to a Roth IRA are made with after-tax dollars. You must be 59 1/2 or older and meet a five-year holding requirement to withdraw without taxes or penalties. A Roth IRA can be…
Key takeaways You may qualify for the saver’s credit if you have a low to moderate income and contributed to a 401(k) or IRA in the past year. The saver’s credit reduces your overall tax bill by a certain amount, depending on your level of income and savings. There are eligibility requirements for the saver’s…
Key Takeaways: With a Roth IRA, you can pay taxes on your retirement savings during your working years if you meet the income limits. You make contributions to a Roth IRA with after-tax money. If you meet the requirements, including having the account open for at least five years and being 59 1/2 or older,…
Roth IRAs can provide significant tax benefits to young people. If you’re nearing the end of your career, you may be wondering if a Roth IRA is still a wise addition to your portfolio. It is possible to open a Roth IRA later in life and start saving. However, there are certain criteria you’ll have…
