For those who struggle to save, here’s a tip: keep the money out of your reach.
With April looming, the season for individual retirement accounts is at its height. Follow these IRA strategies that have stood the test of time, while taking note of this year’s new changes.
Last year I reached a milestone age: 59½, old enough to withdraw money from my individual retirement accounts with no penalty. While this felt bittersweet, it did remind me of the importance of timing when it comes to taking money out of retirement accounts. Withdrawing at the wrong time can create serious tax consequences.
Even as steady paychecks begin to roll in, young adults face a tough road: a volatile and inherently chancy savings vehicle in investments and a retirement that, although far off, will likely cost an unprecedented fortune. What can you do if you’re just starting out?
Most Gen-Yers don’t know what types of retirement accounts to start with. I break down the pros and cons of two most popular ones - 401(k) and the Roth individual retirement account - to help you decide which is right for you.
If you have more than one type of retirement savings plan available to you, where and in what order should you contribute to the accounts?
The ultimate goal of retirement planning is to have a sufficient income for as long as you live. One possible strategy to help you with that goal is to invest a part of your 401(k) in a longevity annuity.
Your decision to defer taxes via a 401(k) or traditional individual retirement account seems to make sense today for your future. Deferring taxes in an IRA can certainly reduce the taxes you owe in the current year. But predicting the impact of tax deferral in the future becomes more complex, and may cost you more in the long run.
Many 401(k) plans allow you to take a loan against what you saved. Such money, though, comes with catches. Overall, tapping your tax-advantaged retirement savings is a bad idea because it saps your retirement kitty.
It’s a new tax year, and many deductions, exemptions and other Internal Revenue Service provisions have changed. Be aware of them. Some will cost you more, some will help you.
Entering 2015, we begin the paper chase leading up to filing tax forms for 2014. As we account for last year, start planning now for 2015. Time flies. This century already is 14% gone.