According to Lloyd Sacks, a Certified Financial Planner and managing director of the private client group at Sacks & Associates, contributing to a 529 plan has some benefits when it comes to your taxes. “Some states allow a deduction for contributions made to in-state 529 plans,” he said.
As the April 15 deadline for the 2018 tax year rapidly approaches, it is important to keep in mind these five key points that will help you to get organized and make this year’s tax filing process a little easier.
With the holiday season officially upon us, many of you are probably looking for a gift that could make a difference for a loved one or wondering what you can do to help your community. A monetary gift is a great way to help a family member or friend, or aid a charitable organization in achieving a goal. But before you open your checkbook, it’s important to keep in mind how gifting can fit into your larger financial plan.
Last week, the Internal Revenue Service raised the cap on the limits that individuals will be able to contribute to their retirement accounts for the 2019 tax year. The limit for participant elective deferrals to 401(k)s and 403(b)s has been raised to $19,000, up $500 from the 2018 limit of $18,500.
What Happens If I Withdraw Money from My Tax-Deferred Investments Before Age 59½? Withdrawing funds from a tax-deferred retirement account before age 59½ generally triggers a 10% federal income tax penalty; all distributions are subject to ordinary income tax. However, there are certain situations in which you are allowed to make early withdrawals from a
What Is Tax Deferral? “Tax deferral” is a method of postponing the payment of income tax on currently earned investment income until the investor withdraws funds from the account. Tax deferral is encouraged by the government to stimulate long-term saving and investment, especially for retirement. Only investment vehicles designated as “tax deferred,” such as IRAs,
Is There Such a Thing as a Tax-Free Investment? The simple answer to this question is “yes.” There are two main types: (1) municipal bonds and municipal bond mutual funds and (2) tax-free money market funds. Municipal bonds are issued by state and local governments in order to finance capital expenditures; typically, municipal bond funds
Is a Home Equity Loan Right for Me? Taxes are becoming an ever-increasing burden to Americans. Through the Tax Reform Act of 1986, Congress reduced or eliminated many of the ways that taxpayers can lower their taxes. Interest deduction is one of the areas that has been strongly affected by this tax reform legislation. Since
How Can I Keep More of My Mutual Fund Profits? Provisions in the tax code allow you to pay lower capital gains taxes on the sale of assets held more than one year. The long-term capital gains tax rate is 15% for taxpayers in the 25%, 28%, 33%, and 35% tax brackets but increases to
