401k Contribution Limits for 2021
This year the IRS announced there will be no change to the maximum employee 401(k) contribution limit for 2021, leaving it at $19,500, the same amount it was set at for the 2020 tax season. There will also be no change to the maximum allowed for catch-up contributions. Those represent the additional amount of contributions that you can make to …
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What You Should Do With Your Tax Refund
Should you use your tax refund on a big-ticket item like a MacBook, designer apparel, a musical instrument, or a wall-sized TV? If you’re tempted, I understand. Getting a tax refund can feel like the IRS just dropped free money into your account. Why not treat yourself to something cool? But that’s not true. Your refund is your hard-earned money. …
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Roth IRA Rules and Contribution Limits for 2021
Opening a Roth IRA can be a smart move if you want to invest for retirement and save money on taxes later in life. However, there are strict rules when it comes to how much you can contribute to your Roth IRA. Contributions to a Roth IRA are made with after-tax dollars, which means your money can grow tax-free. When …
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Are Roth IRA Contributions Tax Deductible?
Roth IRAs can be a savvy retirement savings strategy, but they have one significant drawback: contributions aren’t tax-deductible. Though when taking a closer look at the details, there are also nuances to consider. Although Roth IRA contributions themselves aren’t tax-deductible, you can claim a Roth IRA tax credit, or claim a loss on a Roth IRA. To do so, you’ll …
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403b Maximum Allowable Contributions
In a previous post, I shared some of the basics of 403(b) Tax Sheltered Annuities. As a recap, a 403(b) is a type of retirement account that’s only offered to employees in certain not-for-profit and government jobs. For these employees, their 403(b) is the equivalent of their 401(k). While employee limits are the same for those offered with an employer-sponsored …
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What Is A Health Savings Account?
Let’s face it, medical expenses can have a major impact on your budget, especially as you get older. If you’ve heard about a Health Savings Account or maybe your work offers one, then it just may make sense to give it some serious consideration – and, in my opinion, it typically makes a lot of sense. Interested in learning more? …
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