How is the Social Security trust fund invested?

July 7, 2024 No Comments

A: The Social Security trust fund is an account held with the U.S. Treasury Department. The federal government uses it to record any excess contributions paid into Social Security. The fund only grows when the daily tax receipts obtained from workers and employers is larger

How can I start or set up a Roth 401(k)?

July 7, 2024 No Comments

A: A Roth 401(k) retirement plan is one of several account options available for retirement savings. The key difference between this plan and a traditional 401(k) plan is that a Roth 401(k) is funded by money calculated after taxes, while a traditional 401(k) is funded

How long does an IRA beneficiary have to take an RMD after the IRA holder dies?

July 7, 2024 No Comments

A: Let’s suppose the IRA holder, we’ll call him Tom, dies in 2008. If Tom was required to take a required minimum distribution (RMD) for 2008 (and did not withdraw that amount before he died) his beneficiaries are required to withdraw that amount by December

How can you reclaim escheated, or unclaimed, property?

July 7, 2024 No Comments

A: The process for reclaiming unclaimed or escheated property varies by state, as the federal government does not have a central website for finding unclaimed property. Most state websites are similar in format and typically fairly simple to navigate. The office of the comptroller is

How should I go about investing in a Roth IRA?

July 7, 2024 No Comments

A: Most financial services institutions – such as banks, brokerage firms, credit unions and mutual fund companies – offer Roth IRAs. Establishing a Roth IRA with your financial institution of choice may be as simple as completing a one-page document (your Roth IRA adoption agreement)

How do I know if I qualify to open a HSA (Health Savings Account)?

July 7, 2024 No Comments

A: The Health Savings Account (HSA) was established as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 as a savings plan for individuals with high-deductible health plans (HDHP). To qualify in 2009 as a HDHP, your plan must satisfy both of

How do I report Simple IRA contributions on a W2?

July 7, 2024 No Comments

A: Savings Incentive Match Plans for Employees, or SIMPLE IRAs, are designed for small businesses as a way to offer a retirement savings plan for employees. Contributions are made via salary deferral by the participant. Employers choose between making matching contributions based on employee contributions,

Do 401k contributions reduce AGI and/or MAGI?

July 7, 2024 No Comments

A: Traditional 401(k) contributions effectively reduce both adjusted gross income (AGI) and modified adjusted gross income (MAGI). Participants are able to defer a portion of their salaries and claim tax deductions for that year. A Roth 401(k), similarly to a Roth IRA, is funded through

Do retirement account withdrawals affect tax brackets?

July 7, 2024 No Comments

A: Can withdrawals from retirement accounts affect which tax bracket you fall in? Whether income from retirement account withdrawals can push you into a higher tax bracket depends entirely on the type of account. Any income you earn after retirement from part-time employment or rental

Do tax brackets include Social Security?

July 7, 2024 No Comments

A: A portion of your Social Security benefits may be subject to federal taxation using tax brackets. Your tax bracket is determined by your net taxable income as shown on line 43 of Form 1040. This value is your gross income minus all allowable deductions.

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