Can the non-spouse beneficiary of an IRA name a successor beneficiary?

July 7, 2024 No Comments

A: Whether the beneficiary of an individual retirement account (IRA) can name a successor beneficiary (second generation beneficiary) is determined by the provisions of the IRA plan document. In the last few years, most IRA plan documents that did not allow this option have been

How are Simplified Employee Pension (SEP) IRAs taxed?

July 7, 2024 No Comments

A: Simplified employee pension individual retirement accounts are tax-deferred retirement savings plans designed to allow business owners a simpler method of contributing to employee accounts. In essence, a SEP IRA is a collection of traditional IRAs organized under one broad employer plan that allows for

Can you borrow from a Vanguard 401(k)?

July 7, 2024 No Comments

A: Vanguard 401(k) plans allow participants to borrow against funds available in their tax-deferred retirement accounts. While withdrawing funds before retirement age comes with heavy penalties, borrowing funds using a 401(k) as collateral for personal purposes has no tax or penalty consequences. Loan on Vanguard

How are Social Security benefits affected by your income?

July 7, 2024 No Comments

A: Social Security retirement benefits may be affected by a variety of factors, but your earned income is one of the most important. Your benefits in retirement are partly dependent on the income you received while working, since Social Security taxes vary based on that

Can you buy penny stocks in an IRA?

July 7, 2024 No Comments

A: It is possible to trade penny stocks through an individual retirement accounts, or IRA. However, penny stocks are generally quite risky, so making this investment choice should be done with caution. Penny Stocks The term penny stock is a rather subjective one, as exactly

How are spousal benefits calculated for Social Security?

July 7, 2024 No Comments

A: The amount of your Social Security spousal benefit depends on a number of factors, including your age, the maximum amount of your spouse’s benefit and whether other benefits are available to you. The maximum amount you can claim is 50% of your spouse’s full

Can you have a 403(b) and also contribute to a 401(k)?

July 7, 2024 No Comments

A: Yes. You may participate in both a 403(b) and a 401(k) plan. However, certain restrictions may apply to the amount you can contribute. For instance, you are allowed to make a salary deferral contribution of up to $18,000 in 2017, plus an additional $6,000

Can you make catch-up contributions to a Roth IRA?

July 7, 2024 No Comments

A: Roth individual retirement accounts (IRAs) allow you to contribute after-tax dollars to an account with the ability to take tax-free withdrawals at retirement age, if you meet certain eligibility requirements. You can make catch-up contributions to an IRA and a Roth IRA if you

Can you make tax-free withdrawals from your 401(k)?

July 7, 2024 No Comments

A: Depending on what type of 401(k) account you have and your age, you may be able to withdraw funds tax-free. However, if you have a traditional 401(k) funded with pretax dollars, or you take a distribution prior to age 59.5, you will likely be

Coverting your 403(b) to 401(k)

July 7, 2024 No Comments

A: The IRS says that you can roll a 403(b) plan into a 401(k) plan if you now work for an employer that offers a 401(k). You can also roll a 403(b) plan into a solo or independent 401(k) plan if you are self-employed. However,

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