401K

2016 to 2017 Retirement Plan Contributions and Conversions – How to Reduce your Taxable Income

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In this article we will discuss Retirement Plan Contributions and Conversions and how these can reduce your taxable income in the current tax year. The last business day of 2016 is December 30th, so there is still time to make changes to your contributions to achieve the greatest reduction in your tax liability. The countdown to […]

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The Best Retirement Plans for Young Workers

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It’s not breaking news that you should be saving for retirement. Most employed people understand this fact, so hopefully, you are setting some cash aside for your golden years despite your day to day living expenses. The tricky part of retirement financial planning is figuring out how much you should actually save and where it […]

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2016 vs 2017 Traditional IRA versus Roth IRA – Contribution and Phase-out Income Limits

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I regularly receive reader questions asking me to clarify the difference between a Roth IRA and Traditional IRA plan. Both are excellent retirement investment vehicles, but based on your income and tax situation one may be a better first choice than the other. Shown below is a table with some key differences between the two retirement investment […]

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Which Fund Allocations Should I Choose for My 401K or IRA Contributions in 2016 Given Markets, Economy and Elections

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With the markets rocky, US and global economies facing headwinds and a presidential political campaign in full swing, choosing how to allocate your current and future retirement savings for the medium to longer term is no easy task. But rather than just leave your current 401K and IRA allocations as is amid changing macro and micro […]

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2016 and 2017 401k, 403b Contribution Limits and Catch-up Amounts

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[Updated with 2016 and 2017 contribution limits] The IRS has released updated employer sponsored retirement plan limits, which covers 401(k), 403(b), and Government Thrift Savings (TSP) plans. The annual contribution limit, which is indexed to inflation, remained unchanged over the last 2 years. So like 2015, the maximum amount employees will be able to contribute on a pre-tax basis in […]

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2015 Tax Planning – Capital Gain Taxes and Tax-Deferred Accounts

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This is another article in my 2015 tax planning snapshot series where I provide some quick and easy-to-implement tips on reducing your tax liability in the year ahead. If you invest in actively managed ETFs or mutual funds, looking for a higher than average (vs index fund) return, make sure you do it as tax […]

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2016 vs. 2017 Savers Tax Credit and Income Limits to Help Workers Save for Retirement

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The savers credit, which helps lower income earners save for retirement by providing an offset to retirement plan (401k and IRA) contributions. But a lot of people don’t know about or take advantage of this little known credit, officially referred to by the IRS as the retirement savings contributions credit.. The savers credit was made a permanent part […]

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2015 Official IRS IRA, Roth IRA and 401K Contribution Limits

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Millions of Americans contribute to an employer sponsored 401K or traditional IRA (Individual Retirement Account). And over the last few years the government has steadily been increasing the maximum contribution people can make to ensure that folks can build a larger nest egg during retirement. But thanks for the low inflation environment seen over the preceding year, […]

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2014 401K and IRA Contribution and Income Limits

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The IRS has released updated 2014 limits for defined contribution (or pension) plans such as 401(k) and IRAs. This was delayed from the usual mid-October release due to the government shutdown. The annual limits are tied to Cost of Living Adjustment (COLA) figures and based on these the updated 2014 limits and contribution amounts are shown below […]

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Roth 401k Conversions and IRA Charitable Contributions Reinstated With 2013 Fiscal Cliff Deal

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With a deal to avert the fiscal cliff reached and legislated under the American Taxpayer Relief Act (ATRA) of 2012, a couple of significant employer sponsored retirement plan features have reappeared with some modifications. You can read this article for an overview of the main 2013 income tax related changes in the ATRA act, but in terms […]

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