Are you aware of these potential tax breaks and tax-saving opportunities? The federal government offers some major tax breaks for older Americans. Some of these perks deserve more publicity than they receive. At age 65, the Internal Revenue Service gives you a larger standard deduction. For 2020, standard deductions look like this for taxpayers […]
Tag: roth ira
A Roth IRA’s Many Benefits
Why do so many people choose them over traditional IRAs? The IRA that changed the whole retirement savings perspective. Since the Roth IRA was introduced in 1998, its popularity has soared. It has become a fixture in many retirement planning strategies because it offers savers so many potential advantages. The key argument for going Roth […]
Traditional Vs. Roth IRA
Do you know the difference? Traditional Individual Retirement Accounts (IRA), which were created in 1974, are owned by roughly 33.2 million U.S. households. Roth IRAs, however, were created as part of the Taxpayer Relief Act in 1997, are owned by nearly 22.5 million households.1 Both are IRAs. And yet, each is quite different. Know the […]
Roth IRA Conversions
What are your options? What are the benefits? If you own an Individual Retirement Account (IRA), perhaps you have heard about Roth IRA conversions. Converting your traditional IRA to a Roth IRA can make a lot of sense depending on your situation. But remember, consulting with your financial advisor before making financial decisions is never […]
The Backdoor Roth IRA
A move that high earners can make in pursuit of tax-free retirement income. Does your high income stop you from contributing to a Roth IRA? It does not necessarily prohibit you from having one. You may be able to create a backdoor Roth IRA and give yourself the potential for a tax-free income stream in […]