OVERVIEW What is an IRA? IRA stands for Individual Retirement Arrangement, and is a tax-advantaged investment account available for anyone with earned income. They’re especially useful for people who don’t have access to an employer-sponsored 401k plan at work. There are many different types of IRAs, with the two most popular being the traditional and […]
A self-directed IRA gives you more investment options and lets you invest in alternative assets like real estate, crypto, and private equity. The downside is that every investment has to go through a custodian. You don’t have checkbook control. If you find something you want to invest in, you have to instruct your custodian to send the […]
In 1999, Peter Thiel bought 1.7 million “founder’s shares” of PayPal for $1,700 with his Roth IRA. Within three years, PayPal went public and was acquired by eBay. His initial $1,700 investment turned into $28.5 million. Peter then used that money to make further investments from within his Roth IRA. He invested $500,000 into Facebook, […]
OVERVIEW An IRA overcontribution occurs when you contribute more money to your Individual Retirement Account (IRA) than the IRS allows in a given year. This can happen if you make a mistake when calculating your contribution, or if you change your mind about how much you want to contribute. If you contribute more than the […]
OVERVIEW An individual retirement account (IRA) can help self-employed individuals save for their retirement. While you’re allowed to have an IRA in addition to a company 401k, it’s especially popular for people who don’t have access to an employer-sponsored retirement plan. There are many types of IRAs, but the most common ones are the traditional IRA and Roth […]
An IRA is a tax-deferred retirement account for individuals. Depending on the type of IRA you choose, contributions could be tax-deductible or withdrawals could be tax-free. There are three main IRAs that you could consider rolling over into a solo 401k. There’s also the Roth IRA, which allows Roth contributions: you make contributions with after-tax dollars, […]
To calculate your 2022 and 2023 required minimum distributions for your IRA or 401k, use the RMD table below and follow the steps. How to calculate your RMD Example Let’s say that in 2022, you turned 75 years old. And on December 31, 2021, your 401k account balance was $200,000. Based on the RMD chart […]