The Motley Fool

NOVEMBER 10, 2024

Benjamin Franklin once wrote, "[I]n this world, nothing can be said to be certain, except death and taxes." If you're retired, you may or may not have to pay state taxes on your retirement income. Here are 13 states that won't tax your Social Security, 401(k) , individual retirement account (IRA) , or pension income.

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The Motley Fool

SEPTEMBER 28, 2024

Image source: Getty Images HSAs (health savings accounts) are the unsung hero of personal finances. These accounts allow people with qualifying high-deductible insurance plans to set aside $4,150 for single plans and $8,300 for families out of pre-tax dollars. Once you hit age 55, you can add another $1,000 per year.

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Private Equity Insights

JANUARY 7, 2025

A Blackstone-led investor group is acquiring a majority stake in US accounting firm Citrin Cooperman, valuing the company at over $2bn, according to sources cited by the Financial Times on Tuesday. This could mark Blackstones first investment in the accounting sector. read more US Pipeline Operator ONEOK Inks Two Deals for $5.9

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The Motley Fool

SEPTEMBER 4, 2024

It's a byproduct of millions of people paying Social Security payroll taxes throughout their careers. Not everyone has to pay these taxes, however; some workers are exempt. How Social Security taxes work Social Security payroll taxes are collected under the Federal Insurance Contributions Act ( FICA ).

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The Motley Fool

OCTOBER 23, 2024

There's a simple reason why more seniors are going to be taxed on Social Security Taxes are going to become an issue for more retirees because of the rules that determine when benefits become taxable. Once provisional income goes above this limit, retirees could owe taxes on up to 50% of benefits.

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The Motley Fool

NOVEMBER 19, 2024

Let's look at a few stark facts about why women need healthcare money -- sometimes even more than men -- and how people of all genders can improve their financial stability with health savings accounts (HSAs). One good way for women (or men) to set aside some extra cash for medical expenses is to use a health savings account.

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The Motley Fool

NOVEMBER 24, 2024

Step one is to open a retirement account with a top stock broker so you can start building your investment portfolio. Make the most of tax-advantaged accounts Tax-advantaged accounts can make it a little easier to save for retirement. That gives you time to build up a nest egg. Then take the following three steps.

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The Motley Fool

OCTOBER 10, 2024

Image source: Getty Images If you're like most people, you use a bank account for your everyday transactions. Ideally, you'll pick a great bank account, like these top-rated checking accounts that charge few or no fees, offer perks like overdraft protection, and make it easy to access your money with large ATM networks.

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The Motley Fool

SEPTEMBER 10, 2024

Image source: Getty Images Your trusty savings account is an important piece of your financial puzzle. Unfortunately, many of your fellow Americans are not so fortunate -- research from The Motley Fool Ascent found that just 45% of us can afford a $400 expense with the money in our checking or savings accounts.

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The Motley Fool

OCTOBER 20, 2024

Image source: The Motley Fool/Upsplash High-yield savings accounts are a great place to put the money you're setting aside for a house down payment, emergency fund, or future investments. But as great as high-yield savings accounts are, there are a few mistakes you can make with them. What does that have to do with savings accounts?

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The Motley Fool

NOVEMBER 11, 2024

Tax-advantaged retirement accounts are wonderful financial vehicles that can help you build wealth and plan for retirement. IRAs and 401Ks allow you to invest with pre-tax dollars, allowing the wonders of compound interest to grow your nest egg until it can help support you when you are no longer working. If you are 85?

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The Motley Fool

SEPTEMBER 13, 2024

They deposit the money into their checking account while deciding what to do with it. That's because FinCEN knows there are thousands of reasons why someone might deposit more than $10,000 into their checking account, the vast majority of which are 100% innocent. The Smurfs are instructed to open a handful of bank accounts.

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The Motley Fool

NOVEMBER 30, 2024

I'm a brand-new retirement investor, having opened my first-ever retirement account just a few months ago at age 40. I grew up in a household with multiple small businesses and an often shaky financial situation, rather than with parents with office jobs who contributed diligently to employer-provided retirement accounts.

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The Motley Fool

SEPTEMBER 8, 2024

But one way you can invest more money than you might otherwise be able to is by investing your tax refund every year. Turn a $100/month investment into more than $300/month The average tax refund this year is approximately $2,850, and it normally increases over the years. s largest growth stocks in its portfolio.

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The Motley Fool

DECEMBER 3, 2024

Tax-deferred retirement accounts like traditional IRAs and 401(k) plans let investors reduce their tax burden in a given year by deducting contributions from their gross income. But the tax payments cannot be postponed indefinitely. Specifically, as of 2024, the RMD rules no longer apply to Roth 401(k) account holders.

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The Motley Fool

OCTOBER 21, 2024

To this end, here's a rundown of four simple strategies for minimizing the tax bills created by required minimum distributions -- or RMDs -- from your IRA accounts once you can no longer postpone them. The amount is a percentage of the account's value that changes with your age. What's a required minimum distribution?

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The Motley Fool

SEPTEMBER 2, 2024

High-yield savings account In terms of risk aversion, a high-yield savings account is one of the safest options. These accounts earn interest steadily at a certain annual percentage yield (APY). High-yield savings accounts won't grow your money as aggressively as stocks and bonds. Both give you the power of tax deferral.

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The Motley Fool

SEPTEMBER 9, 2024

Having so much in savings that you have to open a taxable brokerage account just to invest it is a great problem to have. But there may be a way for high earners to save even more in their tax-advantaged retirement accounts. That could either be a Roth account within the 401(k) plan, or a separate Roth IRA.

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The Motley Fool

OCTOBER 8, 2024

Retirement accounts, like IRAs and 401(k)s , come with several advantages for investors. One of the most important is you can defer the taxes on your contributions. But you can't wait forever to pay your tax bill. That's why it imposes required minimum distributions (RMDs) on traditional retirement accounts.

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The Motley Fool

SEPTEMBER 14, 2024

These plans give you a tax break on contributions, thereby lowering your IRS burden in any year you make them. Plus, unlike a regular brokerage account, you don't pay taxes on investment gains year after year in an IRA or 401(k) plan. The IRS doesn't care what you do with your money once it's out of your retirement account.

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The Motley Fool

OCTOBER 23, 2024

The big advantage of those accounts is that you can deduct your contributions from your taxes. With a lower tax bill, you'll have more money to invest and save for your future. By the time you retire, you could have a sizable nest egg in those pre-tax accounts along with some money in a taxable brokerage account.

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The Motley Fool

AUGUST 24, 2024

The federal government encourages retirement savings by offering a tax break for anyone who contributes to certain retirement accounts like a 401(k) or IRA. If you save money in a traditional tax-deferred retirement account, you can deduct the amount you put in on your tax return this year.

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The Motley Fool

SEPTEMBER 21, 2024

One of the biggest for many retirement account holders is required minimum distributions , or RMDs. While you get a tax break when you contribute to a tax-deferred retirement account like an IRA or 401(k) , Uncle Sam eventually wants his cut. That could result in a significant tax burden for some retirees.

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The Motley Fool

SEPTEMBER 22, 2024

Image source: Getty Images I'm not a fan of paying taxes. That's why I'm a big fan of saving for retirement in an individual retirement account (IRA). The benefits of IRAs The more money you put into a traditional IRA up to the limit that applies to you, the more income you can shield from taxes.

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The Motley Fool

DECEMBER 14, 2024

One thing that makes retirement accounts like a 401(k) or IRA extremely attractive is the tax advantages they offer. Instead of paying taxes upfront, you can defer those taxes well into retirement. But you can't defer those taxes forever. Eventually, the government wants its tax revenue.

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The Motley Fool

NOVEMBER 3, 2024

One of the biggest benefits of saving in traditional retirement accounts like a 401(k) or IRA is the upfront tax break you receive. You won't owe any income taxes on contributions in the year you make them. But you can't defer those income taxes forever. Eventually, Uncle Sam wants his cut. 31 of every year).

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The Motley Fool

AUGUST 14, 2024

How the government taxes Social Security To determine income taxes on Social Security , the IRS uses a special metric called combined income to calculate the portion of your benefits, if any, that are taxable income in any given year. As a result, taxes on Social Security benefits are becoming harder and harder to avoid.

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The Motley Fool

OCTOBER 15, 2024

One of the great advantages of saving for retirement in an IRA or 401(k) is the tax savings. Instead of paying taxes on the money you contribute today, you can defer those taxes until retirement. But eventually the IRS comes asking for its tax revenue. 31 of each year). Image source: Getty Images.

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The Motley Fool

SEPTEMBER 1, 2024

Unfortunately, there are some harsh truths about 401(k) accounts that you should come to terms with before you decide this is the right move. Here are the problems with maxing out your 401(k) account There are a few big problems with maxing out your 401(k). You could miss out on better tax breaks. Image source: Getty Images.

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The Motley Fool

SEPTEMBER 17, 2024

Knowing the latest rules for traditional and Roth IRAs can help you maximize your tax advantages, save more money for retirement, and avoid unexpected tax bills. This is especially important for people who inherit an IRA and might not be ready for the tax consequences. Here are a few big changes coming to IRAs in 2025.

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The Motley Fool

OCTOBER 1, 2024

But you must make contributions to your own account before your employer will set anything aside. They give you the freedom to invest your money however you'd like, and you also get a say in when you pay taxes on your funds. That's the limit for all your IRAs, not each account individually. Image source: Getty Images.

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The Motley Fool

OCTOBER 24, 2024

There are different kinds of college savings plans, but all states except Wyoming offer these types of investment accounts. Generally speaking, 529 plans are accounts with low required minimum contributions. These funds can be invested and ultimately withdrawn tax-free. Or are you worried your child might not attend college?

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The Motley Fool

SEPTEMBER 9, 2024

Image source: The Motley Fool/Unsplash Building an emergency fund is a cornerstone of personal finance -- and once you've got that money saved, it's crucial to find the best place to keep it (and no, keeping it in your checking account isn't usually your best move). So what kind of account is best for this crucial cash?

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The Motley Fool

NOVEMBER 6, 2024

The IRS just released the 2025 contribution and income limits for retirement accounts, including Roth IRAs. A quick primer on the Roth IRA The Roth IRA is one of the hottest retirement accounts around, and being able to contribute to it each year is a big deal for many. The tax-free growth and income you get to enjoy in retirement.

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The Motley Fool

OCTOBER 18, 2024

Many families see 529 plans as the go-to college savings accounts because of their tax benefits. Your contributions might reduce your state income tax liability, depending on your plan, and interest grows tax deferred. If you use the money for qualifying educational expenses, you won't owe any taxes on withdrawals.

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The Motley Fool

SEPTEMBER 13, 2024

Depending on your income, your state might tax a portion of your benefits. How to keep more of your Social Security benefits Before focusing on individual states, everyone collecting Social Security should know how their benefits are taxed by the federal government. It pays to plan ahead for taxes in retirement.

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The Motley Fool

AUGUST 3, 2024

You'll face taxes on withdrawals in retirement Unless you keep your money in a Roth IRA , your retirement plan withdrawals will be subject to taxes during your senior years. To then have to lose some of that income to taxes might be a blow. Maxing out your IRA before moving on to a taxable investment account is generally best.

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