December, 2012 | $aving to Invest

$500 Increase in 2013 401k and IRA Contribution Limits Makes a Real Difference at Retirement

The IRS has provided a $500 increase in tax deductible 2013 401(k) and IRA contribution maximums. Employer sponsored 401k plan contribution maximums have risen from $17,000 to $17,500. IRA limits have risen to $5,500 from the 2012 maximum of $5,000. These increases may not seem like a lot at first glance but over a number …

Fiscal Cliff Deal Reached – Extending Unemployment Benefits, Tax Cuts, AMT Patch, EITC, Payroll Tax Credit Expiry, Delaying Budget and Defense Cuts

[Updated Jan 2013] Congress and the Obama administration have reached an agreement that will avert a significant portion of the fiscal cliff and its associated impacts on your pay check and taxes next year. The passed legislation would increase tax revenue by $620 billion and only cut spending by $15 billion because the planned …

Figuring Your IRS Taxable Income – Adjustable Gross Income (AGI) vs. Modified Adjustable Gross Income (MAGI) – From Your W2, 1099-Misc or Paycheck

You would think that figuring your income that is subject to taxes would be easy. Unfortunately, with our overly complex federal tax system the IRS has multiple definitions of income and it’s important to understand the difference between these because not only can it affect how much you pay in …

Which Type of IRA is Best for Me? Roth IRA or Traditional IRA and How to Decide

Most people have heard about Individual Retirement Account (IRA) plans which provide self-administered tax advantaged retirement saving options. For most people two types of IRA options are best – a Traditional IRA or a Roth IRA. But choosing the right option depends on a variety of factors that include, how …