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.

Funds 241

Funds Taxes Education Liabilities 241

The Motley Fool

MAY 20, 2024

The report includes details on everything from the state of Social Security's trust funds to projected COLAs to the program's operating costs and more. The OASI is the fund responsible for retirement benefits, but both play an integral role in the program. Eventually, though, those funds will run out. Image source: Getty Images.

Funds 246

Funds Education Taxes Portfolios 246

The Motley Fool

JULY 29, 2023

When it comes to saving, you can stick to the traditional education savings plans, or you can explore other accounts that give you the flexibility to save beyond college. After you open and fund a 529 plan, you don't have to let your money sit in your account. That's when a Roth IRA can save the day, if you qualify.

Education 246

Education Exchange-Traded Funds Taxes Accounting 246

The Motley Fool

DECEMBER 15, 2024

Professional fund managers tend to be highly educated, hard-working, and extremely smart. But it doesn't take a highly complex trading plan to come out ahead of 98% of professional mutual fund managers over the long run. However, the challenge is compounded as the fund manager starts managing more capital.

Mutual Funds 240

Mutual Funds Funds Taxes Investing 240

The Motley Fool

JULY 14, 2024

Image source: Getty Images You've spent all their lives saving for college, and you finally have a pretty hefty sum -- but now that interest rates are high enough to be worth considering, you wonder if there are more ways you could be growing your kid's college fund. How much can your college fund make in a year? What's the catch?"

Funds 246

Funds Taxes Banks Education 246

The Motley Fool

JUNE 19, 2023

529 plans are a tax-advantaged way to save for higher education, but the penalty for making non-qualified withdrawals can be a huge headache for those who don't use all the money they've accumulated on schooling. The loan must've been disbursed within 90 days of the date the education costs were paid. Image source: Getty Images.

Education 246

Education Taxes Accounting Debt 246

The Motley Fool

JANUARY 6, 2024

These plans are specifically designed for saving for education expenses. Initially, 529 plans could only be used to cover the costs of college and higher education. The best thing about 529 plans is that they're tax-advantaged. You can't deduct contributions to a 529 plan from your federal income taxes.

Education 243

Education Taxes Accounting Funds 243

The Motley Fool

JULY 24, 2023

The money you put into a 529 will not result in a federal tax break, but your state might offer some tax incentives, particularly if you invest in a plan sponsored by your state. The benefit of funding a 529 plan is that your investments in that account get to grow tax-free. Those aren't just limited to college, though.

Education 246

Education Taxes Accounting Funds 246

The Motley Fool

JULY 23, 2023

Millions of parents and grandparents have poured billions into 529 accounts to fund their beneficiaries' schooling since the tax-advantaged savings plans were created by Congress in 1996. But be aware that each state has its own mix of other 529 program features, including additional tax credits and allowable education expenses.

Education 130

Education Mutual Funds Funds Taxes 130

The Motley Fool

OCTOBER 27, 2024

So you may be motivated to save for college as best as you can while your children are young, and you may decide to use a 529 plan to fund their education. You can also use funds from a 529 plan to pay for community college, or to cover the cost of a trade or vocational school. But that's not your only option.

Education 246

Education Prospects Taxes Accounting 246

The Motley Fool

MARCH 27, 2024

The beauty of a Roth IRA lies in its tax structure. Contributions are made with after-tax dollars, but the account's growth and withdrawals are tax free under current laws. A UTMA account offers tax advantages -- the first $1,250 of unearned income is tax free and the next $1,250 is taxed at the child's lower rate.

Accounting 246

Accounting Education Taxes Consulting 246

The Motley Fool

DECEMBER 2, 2023

The 401(k) is a cornerstone of retirement planning -- it's tax-friendly, hands-off, and convenient. Contributions to a traditional IRA may be deductible, and earnings grow tax-deferred until you take withdrawals in retirement. Contributions to a Roth IRA are made with after-tax money, and withdrawals are tax-free in retirement.

Taxes 246

Taxes Mutual Funds Education Exchange-Traded Funds 246

The Motley Fool

JULY 9, 2024

Although I recognize that taxes are a part of life, I typically try to do my best to pay as little of them as possible. But even though I love the tax breaks that come with IRAs and 401(k)s, I'm keeping a pretty large chunk of my retirement nest egg outside of these accounts and in a regular brokerage account with no tax benefits instead.

Education 245

Education Taxes Accounting Funds 245

Private Equity Wire

OCTOBER 30, 2024

Regional private equity firm NorthEdge has made an investment in Telford-headquartered EdTech software provider PebblePad in what is the the seventh deal from NorthEdge Fund III and the firm’s 17th technology investment in total.

Due Diligence 97

Due Diligence Private Equity Firms Private Equity Firms Legal 97

The Motley Fool

JULY 19, 2023

Education isn't just for the young -- it's a lifelong process. It's never too late to go back to learn a new skill, and continuing your education as an adult can be extremely beneficial in both personal and professional aspects of your life. These accounts have tax advantages and can help you maximize your retirement savings.

Education 243

Education Assets Accounting Taxes 243

The Motley Fool

OCTOBER 24, 2024

These funds can be invested and ultimately withdrawn tax-free. 529 distributions cover a lot The average cost of college tuition has soared for years, forcing students to take out big loans to pay for college or simply skip higher education altogether because they can't afford it. Image source: Getty Images.

Taxes 240

Taxes Education Accounting Funds 240

The Motley Fool

JUNE 22, 2024

They each share common benefits but have noteworthy tax-break differences. You contribute after-tax money into a Roth IRA, and in turn, you get to take tax-free withdrawals in retirement. This allows your money to grow and compound without a tax bill waiting for you down the road.

Accounting 240

Accounting Taxes Education Finance 240

The Motley Fool

JULY 28, 2023

But a good 75% of Americans say a post–high school education is important for becoming wealthy, according to data from Vanguard. A better bet is to invest the funds you have earmarked for higher education so that money can grow over time. And it doesn't even have to be college expenses. And you'd be correct.

Education 130

Education Taxes Accounting Funds 130

The Motley Fool

AUGUST 14, 2023

Lowering your current tax bills and postponing taxes on gains made within a retirement account means you've got more money to put to work right now. Here's a closer look at four reasons you might not want to fund a traditional IRA and instead consider a different retirement savings option. That means a bigger nest egg later.

Taxes 246

Taxes Accounting Education Funds 246

The Motley Fool

JULY 26, 2023

The National Center for Education Statistics notes that there were 2 million high school dropouts aged 16 to 24 in the U.S. According to data from the Education Data Initiative, roughly a quarter of full-time first-year college students drop out of college -- and among part-time first-year college students, more than half do.

Education 237

Education Consulting Consultants Banks 237

The Motley Fool

FEBRUARY 25, 2024

Remember, you're locking your money away Retirement accounts are intended for long-term savings, and the government discourages workers from making early withdrawals by instituting a 10% penalty for funds withdrawn before age 59 1/2. It doesn't include the income taxes these workers will have to pay on their withdrawals.

Taxes 246

Taxes Education Consulting Consultants 246

The Motley Fool

AUGUST 13, 2023

You contribute after-tax dollars to a Roth IRA, but withdrawals are free in retirement if you meet other requirements. Money received can also be counted toward your annual income, increasing your tax bill. You don't have that problem with an IRA because you can invest in any single stock or exchange-traded fund your heart desires.

Accounting 246

Accounting Taxes Exchange-Traded Funds Education 246

The Motley Fool

FEBRUARY 25, 2024

What makes a Roth different than a traditional IRA is that your contributions are not tax-deductible, but you won't be taxed on your withdrawals. In other words, your money grows tax-free. For instance, a traditional IRA and 401(k) will make you start withdrawing funds between ages 72 and 73.

Taxes 246

Taxes Education Consulting Consultants 246

The Motley Fool

FEBRUARY 12, 2024

Saving money for retirement while simultaneously getting tax breaks is a 2-for-1 benefit that can work wonders for retirees. In a Roth IRA , your tax break comes in retirement. IRAs allow you to invest in virtually any stock or exchange-traded fund (ETF) you could in your regular brokerage account.

Taxes 246

Taxes Exchange-Traded Funds Education Accounting 246

The Motley Fool

SEPTEMBER 10, 2023

The 2023 Social Security Board of Trustees Report estimates that America's top retirement program is facing a funding obligation shortfall of a whopping $22.4 trillion long-term funding obligation shortfall may not be what you think. US Old-Age, Survivors, and Disability Insurance Trust Fund Assets at End of Year data by YCharts.

Taxes 246

Taxes Legal Banks Assets 246

The Motley Fool

OCTOBER 23, 2024

A 529 plan allows parents, grandparents, guardians, or other loved ones to put money into a tax-advantaged account to invest, (ideally) grow, and use it for qualified education expenses, such as tuition, books, and other relevant fees. This allows families to use unused funds to help further their beneficiary's retirement savings.

Education 130

Education Funds Taxes Accounting 130

The Motley Fool

JULY 2, 2024

Build an emergency fund : In BlackRock CEO Larry Fink's annual letter to shareholders, he noted that people with emergency savings are 70% more likely to set aside money for retirement. If your income is under a certain threshold , you can contribute after-tax dollars to a Roth IRA and receive tax-free income during retirement.

Exchange-Traded Funds 243

Exchange-Traded Funds Taxes Debt Financing 243

The Motley Fool

APRIL 16, 2024

Image source: Upsplash/The Motley Fool Not everyone who files taxes ends up with a refund. But this year, the average tax refund is $3,011. As a caveat, that number could change as more tax returns roll in (keeping in mind that not everyone submits a return by the April 15 filing deadline). Here are some options to consider.

Taxes 130

Taxes Debt Education Funds 130

The Motley Fool

JUNE 7, 2024

However, with discipline, consistency, and education, you still have a shot at getting closer to the million-dollar mark before you hang up your working shoes. Beef up your emergency fund : In BlackRock CEO Larry Fink's annual letter to investors, he mentioned that people with emergency savings are 70% more likely to save for retirement.

Exchange-Traded Funds 242

Exchange-Traded Funds Taxes Accounting Education 242

The Motley Fool

AUGUST 5, 2023

It varies by plan, but most have a combination of the following: Market cap index funds (large, mid, and small) International index funds Target-date funds Your company's stock For some investors, the fewer options and more hands-off they can be, the better. These investors embrace the true meaning of "set it and forget it."

Taxes 246

Taxes Education Accounting Funds 246

The Motley Fool

SEPTEMBER 16, 2023

The REIT also has a small education portfolio (7% of the total – early childhood education and private schools). Those agreements provide stable rental income because the tenants cover variable costs like building insurance, maintenance, and real estate taxes. That gives it lots of financial flexibility to fund new investments.

Education 246

Education Taxes Debt Portfolios 246

The Motley Fool

APRIL 21, 2024

This article is intended for educational purposes only and is not legal advice. Furthermore, once established, they may require ongoing attention, including funding the trust, updating your beneficiary designations, and ensuring legal compliance, depending on their complexity and your desire for change. Or it might not.

Legal 246

Legal Consulting Consultants Education 246

The Motley Fool

DECEMBER 9, 2024

In addition, we're investing time and resources to educate developers in large enterprise accounts and uplevel their MongoDB skills. In our experience, educating these developers on the benefits of MongoDB drives significant incremental adoption of our platform. I'll now provide some more context around our updated guidance.

Education 242

Education Professional Services Leveraging Accounting 242

The Motley Fool

JULY 17, 2023

But if you don't earn a top salary, funding your 401(k) to the limit could mean you don't have money left for your other goals. That's why the IRS imposes a 10% penalty on distributions made before age 59 1/2, on top of applicable income taxes. Plus, you'd pay the 10% penalty and income taxes on the distribution.

Education 246

Education Taxes Accounting Debt 246

The Motley Fool

FEBRUARY 1, 2024

Index funds are a great way to do this, and they're pretty affordable too. You'll pay a 10% penalty if you do, and you'll owe income taxes as well if the money comes from a tax-deferred account, like a traditional IRA or 401(k). There are exceptions to this penalty for things like large medical or educational expenses.

Taxes 246

Taxes Education Accounting Funds 246

The Motley Fool

JULY 28, 2023

Image source: Getty Images If you have big financial goals (such as saving for retirement , buying a home, or paying for your kids' education), it's important to prioritize them if you want to have any hope of actually achieving them. They don't get funded. If you don't get paid as predictably, you can still pay yourself first.

Banks 241

Banks Education Accounting Taxes 241

The Motley Fool

NOVEMBER 28, 2024

HSA contributions are barred after Medicare enrollment Health savings accounts (HSAs) are a great way to set money aside for medical expenses in a tax-advantaged manner. Rest assured, though, that HSA funds you bring with you into retirement can be spent once you're on Medicare. The restriction relates to HSA contributions only.

Education 246

Education Taxes Accounting Funds 246