In this 2020 recap: a pandemic sends the economy and financial markets reeling, leading to relief programs for consumers and businesses and a shift in priorities at the Federal Reserve; the global economy stumbles, but its key players reach important trade agreements; vaccines emerge, and a sustained stock rally set records. THE YEAR IN BRIEF The global pandemic … [Read more...] about Market Update (January 2021)
In this month’s recap: stocks rose as better-than-expected corporate earnings and progress on a COVID-19 vaccine encouraged investors. U.S. Markets Stock prices rallied in July as further development of a COVID-19 vaccine and better-than-expected corporate financial reports encouraged investors. The S&P 500 gained 5.5 percent, while the Nasdaq Composite picked up … [Read more...] about Market Update (August 2020)
In this month’s recap: stocks notched a solid gain, overcoming the rise of reported COVID-19 cases and plans of a slowdown in economic re-openings. U.S. Markets Stock prices climbed higher in June, as investors looked beyond an increase in COVID-19 cases as well as reports that several states planned to slow the pace of their economic re-opening. The Dow Jones I … [Read more...] about Market Update (July 2020)
What is “Mega Backdoor Roth IRA”? It is a financial planning technique that deals with contributing funds to a Roth IRA retirement savings account. Why does my Roth IRA need a “backdoor”? Your direct contributions to Roth IRA may be limited. There are two different limitations. The first limitation deals with the amount of money you can contribute to the account. In 2018 the … [Read more...] about “Mega Backdoor Roth” – The Definitive Guide
A backdoor Roth IRA conversion is a way of funding a Roth IRA account with a traditional IRA conversion instead of a direct contribution. People with relatively high incomes are unable to directly contribute to a Roth IRA. In 2018, the limitation starts at $120,000 for single taxpayers and $189,000 for married filing jointly. To get around this issue, they can make a … [Read more...] about 4 Things to Know About Backdoor Roth IRA Conversions
If you've ever left a job where you had 401(k) or similar retirement plan, you've probably received a letter from the plan administrator outlining the different options you have and their tax consequences. This document is pretty straightforward from the perspective of a tax professional or someone who works in the retirement space, however, for those without this level of … [Read more...] about Avoid Tax Consequences With a Direct 401(k) Rollover
A Roth IRA is a type of retirement account that allows the owner to contribute after-tax dollars and enjoy tax-deferred growth and tax-free distributions in retirement. The tax-deferred growth experienced in a Roth IRA allows funds to compound faster because the total amount is not affected by taxes. A Roth IRA is a great way to save for retirement and protect your retirement … [Read more...] about Roth Conversions Must Now Be Used Wisely
The Tax Cuts and Jobs Act was signed into law on December 22, 2017. The Act brings one of the most significant changes to the tax law in recent history. Most provisions of the act are now in effect, and they will have a substantial impact on a lot of areas of your financial and tax planning. Here are just a few highlights: Significant changes in tax bracket ranges Highest … [Read more...] about Tax Reform Is Here!