Tax-Deferred Retirement Accounts

Sometimes how much is in tax-deferred retirement accounts may be too much

Leave a Comment / 401K, IRA, Required Minimum Distributions (RMD), Retirement, Roth IRA, Tax-Deferred Retirement Accounts, Traditional IRA / Douglas Freeman

Contributing as much as possible to tax-deferred retirement accounts such as traditional 401(k)s and IRAs is a common recommendation. Contributions generally are pretax or deductible, and the power of tax-deferred compounding can help turbocharge growth. But some taxpayers can reach a point where maximizing tax deferral may become counterproductive. Potential downsides of tax-deferred saving After […]

Sometimes how much is in tax-deferred retirement accounts may be too much Read More »

Update on retirement account required minimum distributions

Required Minimum Distributions (RMD), Roth IRA, Tax-Deferred Retirement Accounts, The Secure Act 2.0 / Douglas Freeman

If you have a tax-favored retirement account, including a traditional IRA, you’ll become exposed to the federal income tax-required minimum distribution (RMD) rules after reaching a certain age. If you inherit a tax-favored retirement account, including a traditional or Roth IRA, you’ll also have to deal with these rules. Specifically, you’ll have to: 1) take

Update on retirement account required minimum distributions Read More »

Investment swings: What’s the tax impact?

(LTCG) Net Long-Term Capital Gain, 401K, Capital Gains, Federal Taxes, Investment, Investment Income Tax (NIIT), Roth IRA, Self Employed, Self Employment Tax, Simplified Employee Pension (SEP), Stock Market, Tax Planning, Tax-Deferred Retirement Accounts, Taxes 2023, Traditional IRA / Douglas Freeman

If your investments have fluctuated wildly this year, you may have already recognized some significant gains and losses. But nothing is decided tax-wise until year-end when the final results of your trades will reveal your 2023 tax situation. Here’s what you need to know to avoid tax surprises. Tax-favored retirement accounts and taxable accounts. If

Investment swings: What’s the tax impact? Read More »

Save for retirement by getting the most out of your 401(k) plan

(NIIT) Net Investment Income Tax, 401K, Modified Adjusted Gross Income (MAGI), Retirement, Roth IRA, Tax Planning, Tax Savings, Tax-Advantaged Retirement Plan, Tax-Deferred Retirement Accounts / Douglas Freeman

Socking away money in a tax-advantaged retirement plan can help you reduce taxes and help secure a comfortable retirement. If your employer offers a 401(k) or Roth 401(k), contributing to the plan is a smart way to build a substantial nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution. Because

Save for retirement by getting the most out of your 401(k) plan Read More »

Tax and other financial consequences of tax-free bonds

(NIIT) Net Investment Income Tax, AMT (Alternative Miminum Tax), Bonds, Municipal Bonds, Tax-Deferred Retirement Accounts, Tax-Exempt Bond / Douglas Freeman

If you’re interested in investing in tax-free municipal bonds, you may wonder if they’re really free of taxes. While the investment generally provides tax-free interest on the federal (and possibly state) level, there may be tax consequences. Here’s how the rules work. Purchasing a bond. If you buy a tax-exempt bond for its face amount,

Tax and other financial consequences of tax-free bonds Read More »