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Do you have questions about taking IRA withdrawals? We’ve got answers
January 27, 2025
Categories: IRA, Retirement, RMD, Secure2.0, SEP-IRA, Simple IRA
Once you reach age 73, tax law requires you to begin taking withdrawals — called Required Minimum Distributions (RMDs) — from your traditional IRA, SIMPLE IRA and SEP IRA. Since funds can’t stay in these accounts indefinitely, it’s important to understand the rules behind RMDs, which can be pretty complex. Below, we address some common questions to help you navigate this process. What are the tax implications if I want to withdraw money before retirement? If you
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Senior tax-saving alert: Make charitable donations from your IRA
December 18, 2024
Categories: AGI, charitable giving, IRA, QCD, RMD, Secure2.0
If you’ve reached age 70½, you can make cash donations directly from your IRA to IRS-approved charities. These qualified charitable distributions (QCDs) may help you gain tax advantages. QCD basics QCDs can be made from your traditional IRA(s) free of federal income tax. In contrast, other traditional IRA distributions are wholly or partially taxable, depending on whether you’ve made nondeductible contributions over the years. Unlike regular charitable donations, you can’t
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How inflation will affect your 2024 and 2025 tax bills
December 3, 2024
Categories: 401(k), 403(b), 457 plan, Flexible Spending Account, GiftTax, inflation, Retirement, Secure2.0, Standard Deduction, Tax Breaks
Inflation can have a significant impact on federal tax breaks. While recent inflation has come down since its peak in 2022, some tax amounts will still increase for 2025. The IRS recently announced next year’s inflation-adjusted amounts for several provisions. Here are the highlights. Standard deduction. What does an increased standard deduction mean for you? A larger standard deduction will shelter more income from federal income tax next year. For 2025, the standard deduction will
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The amount you and your employees can save for retirement is going up slightly in 2025
November 12, 2024
Categories: 401(k), 403(b), 457 plan, inflation, IRA, Retirement, Secure2.0, SEP-IRA, Simple IRA, thrift savings plan
How much can you and your employees contribute to your 401(k)s or other retirement plans next year? In Notice 2024-80, the IRS recently announced cost-of-living adjustments that apply to the dollar limitations for retirement plans, as well as other qualified plans, for 2025. With inflation easing, the amounts aren’t increasing as much as in recent years. 401(k) plans The 2025 contribution limit for employees who participate in 401(k) plans will increase to $23,500 (up from $23,000 in