Personal Finance
Latest Personal Finance News
Unrealized Gains: Favorable vs. Unfavorable Tax Treatment
An investment can increase substantially in value without creating an immediate federal income tax bill. In a taxable account, gains…
Trust 65-Day Rule: How Distributions Affect Beneficiary Taxes
The 65-day rule can give certain trusts more flexibility when deciding when to distribute income to beneficiaries. The IRS may…
How Are Annuities Taxed? Withdrawals, Payouts and Penalties
Annuities can look tax-friendly because your money grows without an annual tax bill, but the real surprise often comes when…
Successor Beneficiary of Inherited IRA: Rules, Options and Tax
A successor beneficiary is someone who inherits an individual retirement account (IRA) from a prior beneficiary rather than directly from…
I Inherited an IRA That Was Already Inherited. These Are the Rules Nobody Warned Me About.
You inherited an IRA from a beneficiary, not the original owner. That distinction matters because you generally assume the existing…
How Much Does a Dependent Reduce Taxes on a Paycheck?
Claiming a dependent does not reduce the taxes taken from each paycheck by a fixed amount. Instead, dependents may make…
TSP Roth Conversion: Tax Rules and Examples
Federal employees with traditional Thrift Savings Plans can now convert money to a Roth TSP. This moves their future qualified…
The Average 401(k) Balance Is $351,242. Ignoring This Tax Rule Can Cost You Thousands.
The average 401(k) balance is about $351,242, but taxes can reduce how much of that money is available to spend.1…
I Have 10 Years Left to Retire. Missing My Boss’s 401(k) Match Could Cost Me This Much in Retirement.
With only 10 years left until retirement, missing your employer’s 401(k) match can leave a sizable hole in your savings.…
How to Avoid Capital Gains Taxes on an Inherited House: Strategies and Examples
Inheriting a house does not mean that you automatically owe capital gains tax. In most cases, the home’s value at…
