The gift tax is a federal tax imposed on the transfer of property or assets from one person to another without receiving something of equal value in return. The person giving the gift (the donor) is usually responsible for paying the gift tax. The gift tax applies to both direct gifts (such as cash or […]
Did you know you’re not the only one who’s allowed to contribute to your Roth IRA? Someone else can contribute into your account for you, just as long as you’re eligible to contribute yourself. How it works In order for other people to be able to make contributions into your Roth IRA, you, the account […]
A Roth IRA three different growth components: Let’s go through each one below. Growth component #1: Your contributions The first way your Roth IRA grows is when you make annual contributions to your account. With a Roth IRA, you’re allowed to contribute up to $6,500 for 2023, or up to $7,500 if you’re at least […]
Investing in crypto through a Roth IRA is possible, but usually not through a regular Roth IRA that you find at major banks and institutions. You’ll have to find a special type of Roth IRA known as a self-directed crypto Roth IRA. Why use a Roth IRA to invest in crypto? A Roth IRA gives […]
Are you considering opening and contributing to a Roth IRA for the first time? The Roth IRA account works a little bit differently than other retirement plans. It has many unique tax advantages not available with other accounts. Any individual with earned income during a tax year can make contributions to a Roth IRA, regardless […]
Yes, contributions made to a traditional pre-tax 401k are tax deductible. The amount you contribute gets deducted from your taxable income for the tax year. For 2023, it’s possible to deduct up to $22,500 ($30,000 if age 50+) in taxable income through 401k contributions. However, it’s important to note that contributions made to a Roth […]
Highlights In 2014, the IRS released IRS Notice 2014-21, which determined that cryptocurrencies are to be classified as property for federal tax purposes, rather than as currencies. Like any property, buying or selling of cryptocurrencies are typically subject to capital gains tax. If you buy bitcoin at $10,000 and it rises to $60,000, you’ll be taxed on […]
A Custodial IRA (Individual Retirement Account) is a type of tax-advantaged retirement savings account established for a minor by a custodian, who is usually a parent, guardian, or another responsible adult. The purpose of a custodial IRA is to help minors save for their future retirement or education expenses while benefiting from the tax advantages […]
Yes, rollovers between retirement accounts generally need to be reported to the IRS, although the reporting requirements and tax implications differ depending on the type of rollover (direct or indirect). Reporting direct rollovers In a direct rollover, the funds move directly from one retirement account to another without the account holder taking possession of the […]