How is Social Security tax calculated?

June 30, 2024 No Comments

A: The Old-Age, Survivors and Disability Insurance program (OASDI) tax – more commonly called the Social Security tax – is calculated by taking a set percentage of your income from each paycheck. This percentage is determined by law each year and applies to employees and

How can I put my IRA in a trust?

June 30, 2024 No Comments

A: You cannot put your IRA in a trust while you are living. You can, however, name a trust as the beneficiary of your IRA and dictate how the assets are to be handled after your death. This applies to all types of IRAs, including

How is the Social Security trust fund invested?

June 30, 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)?

June 30, 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?

June 30, 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?

June 30, 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?

June 30, 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)?

June 30, 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

Do 401(k) savings earn interest? v

June 30, 2024 No Comments

A: While there is a wide array of investment accounts available to investors, one of the most common for employees is the 401(k). This account, which is the hallmark of the defined contribution retirement plans that most employers provide, allows investors to make retirement contributions

Do 401k contributions reduce AGI and/or MAGI?

June 30, 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

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