Additionally, contributions to a traditional IRA may be tax-deductible, while contributions to a Roth IRA are made with after-tax dollars but can provide tax-free withdrawals in retirement. Therefore, a spousal IRA (whether traditional or Roth) provides taxpayers with long-term tax benefits that ...
There are different types of Social Security benefits that you can claim. You can take Social Security income based on your own work history and earnings, or you can collect a spousal benefit instead. If you take the benefits based on your spouse's work history and earnings, you will get...
Ex-spouses who were born on or before Jan. 1, 1954, are allowed to file a restricted claim for spousal benefits at theirfull retirement age(FRA) and suspend their own benefits (based on their own work record) until later, a practice known asfile and suspend. This allows their own benefi...
You may wonder, “what is alimony based on?” There are many tables and calculators to help determine how much support one spouse owes the other. However, these generate averages, whereas the actual amount of spousal maintenance is specific to each couple and the financial support they need....
Some income-driven repayment plans, likeRevised Pay As You Earn (REPAYE), have what’s often referred to as a marriage penalty; this is where the loan payments are based on the joint income of married borrowers, resulting in a higher monthly bill. To avoid this, you’ll have to sign ...
Spousal Benefits:In the case of a deferred pension plan that offers spousal benefits, it’s important to understand the tax implications for the spouse. Depending on the jurisdiction and the specific structure of the plan, spousal benefits may have different tax treatment. ...
Irrevocable trusts come in two forms: a living trust, which is established while the grantor is alive, or a testamentary trust, which is established after the grantor’s death based on their will. There are different kinds of irrevocable trusts you can establish to suit your specific situation...
If you are worried about crossing the income threshold where Social Security benefits become taxable, then a Roth IRA can also be a good idea. That's because distributions from a Roth IRA are not counted when determining if your Social Security is taxed. ...
Since 1974, when the IRA was introduced, other models have been added to the lineup to suit all types of savers. For example, SEP IRAs are designed for small-business owners and sole proprietors. The spousal IRA is for nonworking spouses (or ones that earn a low income). But the most...
The accumulation of units during the accumulation stage—or if benefits are deferred—is immaterial to the assumed interest rate. Example of an Assumed Interest Rate As a hypothetical example, assume a variable annuity, where the annuitant receives a minimum guaranteed periodic payment that is ...