Terms of Use Yes, contributions to a Roth IRA may be withdrawn tax- and penalty-free at any time, for any reason. After the IRA has been established for five years, earnings on contributions may be withdrawn tax- and penalty-free, provided the owner meets any of the following specifications: has reached age 59½ has become permanently and totally disabled is deceased is withdrawing the funds for first-time home purchase First-time home purchase withdrawals are limited to a maximum wi  More...

Terms of Use What is a Roth IRA? The purpose of a Roth IRA is to put away money for retirement. To be classified a Roth IRA, the account or annuity must be designated as a Roth IRA when it is set up. An IRA can be a Roth IRA, but neither a SEP IRA nor a SIMPLE IRA can be designated as a Roth IRA. Roth IRAs are funded with after-tax dollars; the contributions are not tax deductible but qualified distributions are tax-free. You may be able to take a Saver's Tax Credit of 10% to 50% of the co  More...

Terms of Use What is a 403(b)? A 403(b) is an employer sponsored retirement savings plan that allows you to save pre-tax dollars for your retirement. A Roth 403(b) permits only after-tax contributions but allows you to diversify your tax risk by letting eligible participants make tax-free withdrawals after retirement. The IRS limits the amount you can contribute each year In 2025: Up to 100% of your includable compensation (if less than the elective deferral limit). Includable compensation is  More...

Terms of Use A 403(b) is a retirement plan provided by employers in nonprofit organizations. This includes school systems, hospitals and healthcare systems and religious organizations. 403(b) plans are similar to 401(k) plans which are provided by employers engaged in for-profit businesses. Contributions to a 403(b) plan are pre-tax and come directly out of your paycheck. In the eyes of the government you've actually earned less (your 403(b) contribution is deducted from your earnings)   More...

Terms of Use Yes , you can have as many Roth IRAs as you wish, but there are strict limits on how much you can contribute to these accounts during any given tax year. No matter how many IRAs you have or what type (Traditional, Roth or SEP) you can contribute no more than $7,000 per year for tax year 2025 ($8,000 if you're age 50 or over). Roth IRA contributions are only allowed if your income (technically your Modified Adjust Gross Income or MAGI ) is below a certain level: 2025 Income li  More...

Terms of Use The future of Social Security Much is being talked about these days about the future of Social Security. Social Security is primarily financed by payroll taxes. As long as people work, the system will never completely run out of money. The Social Security taxes you pay go into the Social Security Trust Funds and are used to pay benefits to current beneficiaries. Estimates made by the Social Security Board of Trustees are that in 2035 the Trust Funds will be depleted. What happens th  More...

Terms of Use No . You cannot borrow from your IRA. Using your IRA for collateral will cause the portion of the IRA used as collateral to become taxable and may cause penalty taxes. IRAs receive special treatment from the IRS because you do not have use of those funds. If you could pledge them as collateral, you would effectively have use of the funds. You can withdraw funds from an IRA under certain circumstances. If you withdraw money from your IRA, the value of the withdrawal is included in   More...

Terms of Use An IRA is an Individual Retirement Account that provides several tax benefits . IRA accounts can be comprised of fixed income instruments, such as CDs/share certificates, bonds, stocks and mutual funds, to name just a few options. A Traditional IRA enables individuals to save money in a tax-deferred account. What that means is that the earnings from your IRA account will not be taxed until you begin taking money out of the account. Traditional IRA Snapshot Contributions: Fully or  More...

Terms of Use The IRS uses MAGI to determine if any or all of your IRA contribution is deductible and if you are eligible for premium tax credits. The higher your MAGI, the fewer deductions you can take on IRA contributions. There is a maximum MAGI when if met, IRA deductions aren't allowed. While you can still contribute to an IRA, but you won't be able to deduct any of the contributions on your tax return. Adjusted Gross Income (AGI) AGI represents your taxable income. AGI is defined as  More...

Terms of Use The benefits within your IRA will pass directly to your named beneficiaries without being subject to the estate probate process. Investments in a Traditional IRA or 401(k) retain most of their character as an IRA or 401(k), but they generally must be withdrawn from those accounts over time. The timing of withdrawals depends on whether your spouse inherits it or another beneficiary (such as your child). If your primary beneficiary is your spouse, they have the option of assuming   More...