If you have a traditional IRA (or “front-ended” IRA), you get a deduction for any money you put in a retirement account, but then you pay tax on the money – including any earnings – when the money is withdrawn. If you have a Roth IRA (or “back-ended” IRA), you pay tax ...
If your annuity was funded with Roth IRA monies, and you have adhered to the requirements as set out by the IRS (maintaining the account for a minimum of 5 years and you have attained age 59-½), then all withdrawals are taken tax-free....
Unlike traditional IRAs,Roth IRAsdo not provide a tax break for contributions. In other words, Roths are funded with after-tax dollars. However, Roth IRAs do provide tax-free withdrawals, as long as certain criteria are satisfied.1The criteria for a qualified withdrawal are: The owner of the...
The oldest tax revenue sources, and the traditional fiscal bedrock of local and state government, were poll and property taxes. These concepts were brought over from England, and were direct taxes. The poll tax was a fixed, regressive tax (one in which everyone paid the same amount) that ...
Beware of early withdrawals. The penalties are severe.42 You will be taxed on the compensation when you actually receive it. This should be sometime after you retire, unless you meet the rules for another triggering event that is allowed under the plan, such as a disability.2The payment of...
The tax benefits you will enjoy will depend on the IRA type and tax situation. Nevertheless, traditional IRAs can facilitate tax-deductible contributions, though you will pay income taxes for retirement withdrawals. Declare Your Bitcoins as Income Maybe you’ve mined your Bitcoins or received them...
Okay, so I view mylast post on 401k loansas a failure. I tried to use as little math as possible in explaining why 401k loans are not a bad idea due to the incorrect concept of “double taxation”. Instead, I probably managed to confuse many of you all further. I have tried to co...
If you contributed money in after-tax dollars, your pension or annuity withdrawals will be only partially taxable. Partially taxable qualified pensions are taxed under the simplified method.18 Modified Pension Plans Some companies are keeping their traditional defined-benefit plans but are freezing the...
If you contributed money in after-tax dollars, your pension or annuity withdrawals will be only partially taxable. Partially taxable qualified pensions are taxed under the Simplified Method.18 Modified Pension Plans Some companies are keeping their traditional defined-benefit plans but are freezing the...