IRA – Page 4 – DougFreemanCPA.com

Thinking about participating in your employer’s 401(k) plan? Here’s how it works

401K, Contributions, Employee Benefits, Employees, IRA, Retirement, Roth IRA, Small Business, Tax, Tax Planning / Douglas Freeman

Employers offer 401(k) plans for many reasons, including attracting and retaining talent. These plans help an employee accumulate a retirement nest egg on a tax-advantaged basis. If you’re thinking about participating in a plan at work, here are some of the features. Under a 401(k) plan, you have the option of setting aside a certain […]

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Are you a nonworking spouse? You may still be able to contribute to an IRA

AGI (Adjustable Gross Income), IRA, Retirement, Roth IRA, Spousal IRA / Douglas Freeman

Married couples may not be able to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a

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Didn’t contribute to an IRA last year? There still may be time

AGI (Adjustable Gross Income), Contributions, IRA, Roth IRA / Douglas Freeman

If you’re getting ready to file your 2020 tax return, and your tax bill is higher than you’d like, there might still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the April 15, 2021 filing date and benefit from the tax

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Don’t forget to take required minimum distributions this year

(CAA) Consolidated Appropriations Act of 2021, (CARES ACT), Investment, IRA, Required Minimum Distributions (RMD), Roth IRA, Tax Planning / Douglas Freeman

If you have a traditional IRA or tax-deferred retirement plan account, you probably know that you must take required minimum distributions (RMDs) when you reach a certain age — or you’ll be penalized. The CARES Act, which passed last March, allowed people to skip taking these withdrawals in 2020 but now that we’re in 2021,

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Steer clear of the wash sale rule if you’re selling stock by year end

Investment, IRA, Roth IRA, Securities, Small Business, Stocks / Douglas Freeman

Are you thinking about selling stock shares at a loss to offset gains that you’ve realized during 2020? If so, it’s important not to run afoul of the “wash sale” rule. IRS may disallow the loss. Under this rule, if you sell stock or securities for a loss and buy substantially identical stock or securities

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Taking distributions from a traditional IRA

IRA, Required Minimum Distributions (RMDs), Retirement, Roth IRA, Simples, Simplified Employee Pension (SEP), Tax Planning / Douglas Freeman

Although planning is needed to help build the biggest possible nest egg in your traditional IRA (including a SEP-IRA and SIMPLE-IRA), it’s even more critical that you plan for withdrawals from these tax-deferred retirement vehicles. There are three areas where knowing the fine points of the IRA distribution rules can make a big difference in

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New business? It’s a good time to start a retirement plan

401K, Employee Benefits, Employees, Individual Income Tax, IRA, Retirement, Roth IRA, Simplified Employee Pension (SEP), Small Business, Tax, Tax Planning / Douglas Freeman

If you recently launched a business, you may want to set up a tax-favored retirement plan for yourself and your employees. There are several types of qualified plans that are eligible for these tax advantages: A current deduction from income to the employer for contributions to the plan, Tax-free buildup of the value of plan

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What qualifies as a “coronavirus-related distribution” from a retirement plan?

(CARES ACT), Coronavirus Aid (CARES Act), COVID-19, Internal Revenue Service (IRS), IRA, Retirement / Douglas Freeman

As you may have heard, the Coronavirus Aid, Relief and Economic Security (CARES) Act allows “qualified” people to take certain “coronavirus-related distributions” from their retirement plans without paying tax. So how do you qualify? In other words, what’s a coronavirus-related distribution? Early distribution basics. In general, if you withdraw money from an IRA or eligible

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A nonworking spouse can still have an IRA

AGI (Adjustable Gross Income), Contributions, Income Tax, Investment, IRA, Retirement, Roth IRA, Tax / Douglas Freeman

It’s often difficult for married couples to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer has compensation. However, an exception involves a “spousal”

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There’s still time to make a deductible IRA contribution for 2019

401K, Coronavirus Aid (CARES Act), COVID-19, IRA, Retirement, Roth IRA, Tax, Tax Deadlines, Tax Planning, Tax Savings / Douglas Freeman

Do you want to save more for retirement on a tax-favored basis? If so, and if you qualify, you can make a deductible traditional IRA contribution for the 2019 tax year between now and the extended tax filing deadline and claim the write-off on your 2019 return. Or you can contribute to a Roth IRA

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