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How are Series EE savings bonds taxed?
August 27, 2024
Categories: Savings, Savings Bonds, Series EE bonds
Savings bonds are purchased by many Americans, often as a way to help fund college or show their patriotism. Series EE bonds, which replaced Series E bonds, were first issued in 1980. From 2001 to 2011, they were designated as “Patriot Bonds” as a way for Americans “to express support for our nation’s anti-terrorism efforts,” according to the U.S. Treasury Department. Perhaps you purchased some Series EE bonds many years ago and put them in a file cabinet or safe
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4 tax challenges you may encounter if you’re retiring soon
May 16, 2023
Categories: #hh, IRA, Retirement, Savings, Social Security, Tax
Are you getting ready to retire? If so, you’ll soon experience changes in your lifestyle and income sources that may have numerous tax implications. Here’s a brief rundown of four tax and financial issues you may contend with when you retire: Taking required minimum distributions. These are the minimum amounts you must withdraw from your retirement accounts. You generally must start taking withdrawals from your IRA, SEP, SIMPLE and other retirement plan accounts when you reach age
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Retirement saving options for your small business: Keep it simple
April 13, 2023
Categories: #hh, Business, Income, IRA, Retirement, Savings
If you’re thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved, there are a couple of options to consider. Let’s take a look at a “simplified employee pension” (SEP) or a “savings incentive match plan for employees” (SIMPLE). SEPs are intended as an attractive alternative to “qualified” retirement plans, particularly for small businesses.
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Many tax limits affecting businesses have increased for 2023
February 1, 2023
Categories: #hh, Business, Retirement, Savings, Social Security, Tax
An array of tax-related limits that affect businesses are indexed annually, and due to high inflation, many have increased more than usual for 2023. Here are some that may be important to you and your business. Social Security tax The amount of employees’ earnings that are subject to Social Security tax is capped for 2023 at $160,200 (up from $147,000 for 2022). Deductions Section 179 expensing: Limit: $1.16 million (up from $1.08 million) Phaseout: $2.89 million
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How the new SECURE 2.0 law may affect your business
January 16, 2023
Categories: #hh, General, Retirement, Savings, Tax
If your small business has a retirement plan, and even if it doesn’t, you may see changes and benefits from a new law. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) was recently signed into law. Provisions in the law will kick in over several years. SECURE 2.0 is meant to build on the original SECURE Act, which was signed into law in 2019. Here are some provisions that may affect your business. Retirement plan automatic enrollment. Under the new law, 401(k)
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Investing in the future with a 529 education plan
October 5, 2022
Categories: #hh, Income, Savings, Tax
If you have a child or grandchild who’s going to attend college in the future, you’ve probably heard about qualified tuition programs, also known as 529 plans. These plans, named for the Internal Revenue Code section that provides for them, allow prepayment of higher education costs on a tax-favored basis. There are two types of programs: Prepaid plans, which allow you to buy tuition credits or certificates at present tuition rates, even though the beneficiary (child) won’t
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The kiddie tax: Does it affect your family?
July 19, 2022
Categories: Income, Investments, Savings, Tax
Many people wonder how they can save taxes by transferring assets into their children’s names. This tax strategy is called income shifting. It seeks to take income out of your higher tax bracket and place it in the lower tax brackets of your children. While some tax savings are available through this approach, the “kiddie tax” rules impose substantial limitations if: The child hasn’t reached age 18 before the close of the tax year, or The child’s earned income