Archive | June, 2012

Tax Treatment of Inherited IRA Accounts and Inherited IRA Distribution

Opening up an IRA can be somewhat confusing for some people. Knowing the ins and outs of tax and penalty implications for withdrawals and earnings is a bit more complex. Where it really begins to get complicated is when you inherit an IRA and have to deal with taxes. The tax regulations governing inherited IRAs […]

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Do I Pay Taxes on a Roth IRA Withdrawal of My Original Funds?

Roth IRAs were created in 1997 to offer a tax advantaged way to save for retirement, apart from what you can find with a traditional IRA. Currently, roughly 22% of Americans surveyed said they have an IRA account, and while most use a traditional IRA, more and more savers are turning to a Roth IRA […]

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Can Anyone Buy Stocks Or Are There Restrictions?

Stock trading has taken off over the last decade, with the advent of the Internet and online stock brokerages like Zecco and Scottrade. Membership with these brokerages and others has exploded. Now, everyone trades stocks in some form or fashion, either online daily or through 401ks and IRAs. Are there any limitations on who can […]

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How Much Will the Tax Be on Cashing Out a 401k?

Nearly 50 million Americans have 401k accounts, which are retirement savings accounts that match your monthly, pre-tax contributions with contributions from your employer (in most cases). The money then grows in your investment portfolio and can be withdrawn, generally, once you hit the age of 59 ½. A 401k is tax advantageous because you can […]

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Where Should I Invest My 401k?

401k retirement savings plans are terrific ways to save for retirement. They use the power of investment and compound interest to deliver tremendous returns based on how much you put in each year. By the time you are able to withdraw your funds without penalty – at the age of 59 ½ – the percentage […]

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Can You Invest in Both an IRA and 401k at the Same Time?

Of the various defined contributions plans out there today, the two most popular are individual retirement accounts (IRAs) and 401k plans. Both have their advantages and disadvantages, and both are widespread; it’s estimated that 50 million Americans have a 401k plan and 47 million have an IRA of some kind. While you can have more […]

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How Much Can I Contribute to My 401k Per Year?

A 401k can be a pretty powerful investment tool for retirement if you make full use of it. Basically, through a 401k offered by your employer, you can contribute a certain amount of pre-tax dollars from your gross salary to your account. This money may be matched dollar for dollar (to a certain amount) by […]

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When Do I Have to Take Money Out of My 401k?

This is a pretty popular question, if only because a 401k is still a very popular option for those who want to save for retirement. A 401k gives you the ability to take a portion of your monthly pre-tax income, match it with contributions from your employer (up to certain limits), and have it placed […]

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Can You Use IRA Accounts as Collateral?

IRAs – individual retirement accounts – are some of the most popular retirement plans used today. Close to 48 million American households feature some kind of IRA; many have more than one. Traditional IRAs lead the way, but today more and more are moving toward Roth IRAs which give you some pretty nice tax advantages. […]

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Calculating 401k Early Withdrawal Penalties

A 401k is probably the most well-known defined contribution plan on the market today. Over 50 million Americans have 401k plans, with close to $3 trillion in assets, and while that number has decreased, it is still pretty robust. Probably the best benefit of a 401k is that it is through your employer; as a […]

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