traditional IRA Archives - DR News - News, Retirement, Finance

Are you making this common retirement mistake

Planning for retirement often involves making contributions to tax-advantaged accounts like 401(k)s and IRAs. These accounts offer attractive tax benefits, but staying within the IRS-imposed limits is essential. Exceeding these limits can result in unwanted tax consequences. Here’s what you need to know about excess contributions and how to rectify them before the tax deadline. For the 2024 tax year, the contribution limits for retirement accounts vary based on age and the type of account …

Use These Simple Hacks To Watch Your Savings Grow

Your retirement might seem far away, but your current decisions can significantly shape your future. By making a few strategic changes to your savings and investment approach, you can substantially grow your retirement funds. Here are three straightforward retirement strategies that demand little effort now but promise significant rewards later: 1. Automate Your Savings: The principle here is simple: you won’t feel the pinch of money you never see. This is the logic behind automatically …

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 …

Attention Retirement Savers: Are You Overlooking These 4 Perks of Traditional IRAs

There’s still ample time remaining to make contributions for the year 2024. Regarding individual retirement accounts (IRAs), the spotlight is often on Roth accounts, which offer valuable perks such as tax-free withdrawals during retirement. However, traditional IRAs also have several benefits that are worth considering. To make an informed decision that is right for you, it is crucial to have a clear understanding of both options. Here are four advantages of saving in a traditional …

Are You Falling Into A Hidden Tax Trap By Delaying RMDs?

Congress has recently expanded a tax trap that affects individuals with traditional IRA and 401(k) accounts by enacting the SECURE Act 2.0 in December 2024. This law has pushed back the age at which required minimum distributions (RMDs) must begin, delaying it to age 73 starting from January 1, 2023. Subsequently, the starting age will increase to 75 starting from January 1, 2033. If you already take RMDs before 2023, these changes do not impact …