retirement income Archives - DR News - News, Retirement, Finance

Exposed: The Hidden Tax Traps for People Over 65

Retirement brings many changes, including alterations in your tax situation. One common question among retirees is whether they can ever stop filing taxes. The answer is that age does not exempt you from taxes. If you’re 65 or older, you must file a tax return if your gross income is $14,700. For couples filing jointly where both partners are 65 or older, this threshold is $28,700. However, if your sole income is from Social Security …

Are You Overpaying Taxes on Your Social Security? Find Out Now!

As you approach or enjoy your golden years, understanding the tax implications of your Social Security income is crucial. While Social Security benefits provide a financial safety net for many retirees, knowing whether these benefits are taxable and how they can impact your overall retirement income is essential. Is My Social Security Taxable? The short answer is that Social Security income can be taxable, depending on your overall income level. Suppose your income sources, such …

Could These RMD Rules Turn Charitable Donations Into Long-Term Retirement Income?

Retirees, you’ll be delighted to learn that the new SECURE 2.0 Act has brought about some exciting changes that can help you maximize your retirement income while giving back to the causes you care about. For those who have felt burdened by required minimum distributions (RMDs), this new tool could be a game-changer. In this post, I’ll walk you through how the latest RMD rules can allow you to turn charitable donations into lifelong retirement …

The Spousal Benefit Switch: Could This Social Security Secret Boost Your Retirement Income?

Retirement is a phase of life that brings many decisions, especially concerning finances. One such decision revolves around Social Security benefits. If you’re married, consider spousal benefits’ intricacies. Let’s dive deep into this topic. The Basics of Social Security Spousal Benefits Social Security serves as a dependable source of retirement income. For married couples, deciding when to claim these benefits becomes crucial, especially if qualifying for spousal benefits is possible. If you’ve already initiated your …

Understanding Non-Deductible IRAs and Their Distinctions from Roth or Traditional IRAs

Is it logical to finance an individual retirement account (IRA) when it doesn’t offer a tax deduction? Many individuals who aren’t eligible to fully finance a deductible IRA or Roth IRA miss out on this straightforward opportunity to set aside additional retirement funds that can mature without tax implications. Unlike a 401(k) or similar salary reduction plan, you can contribute to a non-deductible IRA until the tax filing deadline. Understanding Non-deductible IRAs During a tax …

New Study Reveals the Surprising Best State to Retire In – You Won’t Believe the Result

The recent findings from a new Bankrate study challenge the conventional wisdom of retiring in sunny Florida, suggesting instead that a Midwestern state might offer better financial prospects for retirees. While warm weather has been a popular choice for many Americans in their golden years, the study indicates that opting for a Midwestern state like Iowa could be kinder to one’s wallet. In their quest to identify the most favorable retirement destinations, Bankrate thoroughly examined …

Shocking Revelation: High-Income Savers Must Pay Taxes NOW on Retirement Contributions

Tags: retirement savers, catch-up contributions, taxes, Congress, Secure Act 2.0, retirement accounts, Roth basis, after-tax money, tax deduction, retirement planning, contribution limits, 401(k), retirement plans, Vanguard report, legislative errors, operational challenges, retirement community, retirement savings, Roth accounts, required minimum distributions, IRS, U.S. Treasury, American Retirement Association, Retirement savers with high incomes might soon face the prospect of paying taxes immediately on catch-up contributions rather than later. Congress passed Secure Act 2.0 last December, stipulating that …

Unveiling the Shocking Truth: Are Roth IRAs Really Overhyped?

Are Roth IRAs truly as beneficial as they are often portrayed? While Roth IRAs serve as a favorable tax strategy, it’s essential not to overlook the advantages of traditional tax-deferred retirement accounts. It is rare to find critics of Roth IRAs, as they have gained an exceptional reputation and are considered essential for anyone saving for retirement. However, it’s crucial to recognize that Roth IRAs are just one of many tax strategies, each with pros …

Retirement Planning Demystified: Understanding the 25% Rule and Social Security Benefits

The 25x Rule provides a helpful guideline for estimating the amount of money required for retirement savings. When planning for retirement, numerous factors exist, such as determining the optimal time to claim Social Security benefits, covering healthcare expenses, and effectively managing retirement accounts. This rule of thumb, known as the 25x Rule, offers a broad perspective on your retirement needs as you create your retirement plan. What Does the 25x Rule Entail? The 25x Rule …