Content tagged "retirementplanning"

What were Traditional IRA and Roth IRA Contribution Limits in the Past?

Personal Finance Updated: May 24, 2018

IRAs were established by legislation passed in 1974. Traditional individual retirement accounts (IRAs) first became available in 1975. Anyone with earned...

What Are the Minimum and Maximum Amounts That Can be Saved Each Year in an IRA?

Personal Finance Updated: February 08, 2017

Federal tax law limits 2017 contributions to a traditional and/or Roth IRA to $5,500 for a worker with earned income ($6,500 for those who are age 50 or...

What is the Required Minimum Distribution (RMD) Rule for Tax-Deferred Retirement Plans Like IRAs and 401(k)s?

Personal Finance Updated: February 08, 2017

“RMD” is an abbreviation for “required minimum distribution.” This is the amount of money that retirees age 70½ and older are required to withdraw from their...

If You Have Not Earned the Maximum Amount Allowed to be Contributed to an IRA, Can You Still Contribute That Amount?

Personal Finance Updated: February 07, 2017

You are allowed to contribute the greater of 100% of your earned income (salary or wages from a job or self-employment income) or $5,500 to a Roth and/or...

Can You Split Your IRA Contribution Between Both a Traditional and a Roth IRA?

Personal Finance Updated: February 07, 2017

Yes, as long as the total amount of your contributions to more than one IRA does not exceed the maximum annual contribution limit which, in 2017, is $5,500...

How Does Your Age Determine the Amount of Your Social Security Benefit?

Personal Finance Updated: February 07, 2017

Basically, the longer you wait to claim a Social Security benefit, the more money you will receive. Under current Social Security guidelines, the earliest...

Can Money Withdrawn From a 403(b) Plan in Retirement Be Put Into a Roth IRA?

Personal Finance Updated: February 07, 2017

It depends. You must have earned income to contribute to an IRA of any type, including a Roth IRA. This means that you must have a salary, hourly wage, or...

What Are the Income Restrictions to Qualify for a Deductible Traditional IRA?

Personal Finance Updated: February 07, 2017

People with earned income who are not in an employer-sponsored retirement plan, regardless of income level, may qualify for a tax deductible traditional IRA....

What Are the Income Restrictions to Qualify to Contribute to a Roth IRA?

Personal Finance Updated: February 07, 2017

Below are the income restrictions for 2017 Roth IRA contributions:• Roth IRAs are fully available to single filers whose adjusted gross income (AGI) is less...

Can Workers' Income Reduce Their Spouse's Social Security?

Personal Finance Updated: February 07, 2017

No. The earnings limit ($16,920 in 2017 for beneficiaries who are age 62 through full retirement age) applies only to the income of the person who is...

When considering the required minimum distribution (RMD) for married couples filing jointly, can their distributions be combined for a combined RMD?

Personal Finance Updated: December 08, 2013

Each spouse is responsible for making a required minimum distribution (RMD) withdrawal based on his or her own individual tax-deferred retirement savings...

How does the "still working exception" for RMDs (required minimum distributions) apply to 403(b) plans for retired teachers who work occasionally as substitute teachers?

Personal Finance Updated: December 08, 2013

"Still working" means you have not retired from the position in which you were covered by the 403(b) plan. If you retire from a teaching position and...

Due to circumstances beyond my control, my Required Minimum Distribution (RMD) was not withdrawn until early January. What is the procedure I need to follow in such a case?

Personal Finance Updated: December 08, 2013

The deadline date for Required Minimum Distributions (RMD) is December 31 of each year except for your first RMD. You generally have until April 1 of the...

How do you determine your required minimum distribution (RMD) from retirement savings plans?

Personal Finance Updated: December 08, 2013

Follow these five steps to calculate your RMD:1. Determine the distribution year. The account balance used to compute the RMD is based on the balance in a...

Is my FERS federal retirement pension considered taxable income?

Personal Finance Updated: December 08, 2013

Much of a federal government worker's CSRS or FERS pension benefit will be taxable on a federal income tax return. State income tax laws with respect to...

Who is exempt from paying the FICA tax in the United States?

Personal Finance Updated: November 26, 2013

FICA stands for Federal Insurance Contributions Act. FICA consists of two separate payroll taxes: Social Security (6.2% of pay) and Medicare (1.45% of pay),...

How do I pay taxes on my required minimum distribution (RMD) so I don't get in trouble with the IRS?

Personal Finance Updated: April 16, 2013

It depends. Tax law requires the payment of income taxes throughout the year as you earn income. This obligation can be met through quarterly estimated tax...

What factors should I consider in choosing a house and location for retirement?

Personal Finance Updated: February 27, 2013

Finding housing for retirement is an important component of planning for your future because housing costs are usually the largest and most expensive portion...

How do I get less FICA tax taken out of my paycheck?

Personal Finance Updated: February 18, 2013

The percentage of income for FICA tax that workers pay is determined by federal law and is the same for everyone. The only way to pay less FICA tax (as a...

Why do employers prefer defined contribution retirement plans?

Personal Finance Updated: October 23, 2012

Since the mid-1980s, there has been a trend away from defined benefit pensions toward less costly defined contribution plans, especially 401(k)s. A major...

Does the exception to the required minimum distribution (RMD) rules apply to self-employed persons who are still working and have SEP plans?

Personal Finance Updated: July 17, 2012

You are referring to the "still working exception" for the required minimum distribution (RMD) from tax-deferred retirement savings plans. This exception...

I am 79 years old. What is the required minimum distribution (RMD) for my IRA and 401(k) plan?

Personal Finance Updated: July 17, 2012

This worksheet will help you determine your required minimum distribution (RMD): http://njaes.rutgers.edu/money/ira-table.asp. As you can see in the table,...

Do I have to pay capital gain taxes on my required minimum distribution (RMD)?

Personal Finance Updated: July 12, 2012

To calculate your RMD, divide the amount of money held in your tax-deferred account(s) at year end by the number of years left in the account owner's life...

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