Terms of Use Traditional IRA assets pass directly to your beneficiaries, bypassing probate. However, the tax rules for 2026 are strict regarding how quickly those funds must be withdrawn. The 10-Year Rule Most non-spouse beneficiaries (like adult children) must withdraw the entire account balance within 10 years . If you died after you began taking Required Minimum Distributions (RMDs), your heirs must also take annual withdrawals during that 10-year window. Tax Treatment: Every dollar withdra  More...

Terms of Use IRAs are a great way for you to save for the future. Your IRA can consist of a range of investments from savings accounts, stocks, ETFs, bonds, and certificates of deposit or share certificates. You can contribute up to a certain limit each year into your IRA and if you're over 50, you are allowed an additional catch up contribution. The tax advantages of a Traditional or Roth IRA depend on your annual income and whether you are covered by your company's retirement plan.  More...

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Terms of Use Generally yes , you will be assessed a 10% penalty if you withdraw funds from your 401(k) plan before the age of 59-1/2. There are situations where the IRS will waive the 10% early withdrawal penalty on a 401(k): Medical Expenses: If your un-reimbursed medical costs exceed 10% of your adjusted gross income Court Mandates: If a court has ordered you to pay a former spouse, child or dependent from your 401(k) Substantially Equal Periodic Payments : If you take at least five su  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...

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Terms of Use What Social Security Is and How It’s Funded Social Security is a federal program that provides retirement, disability, and survivor benefits. It’s primarily funded through payroll taxes — workers and employers each pay 6.2% of wages (up to the taxable maximum) into the system, and that money is used to pay current beneficiaries. Trust fund reserves accumulated over decades are also used to cover benefits when annual tax income isn’t enough. Trust Fund Project  More...

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Terms of Use Yes , you can contribute to a Roth IRA after age 70-1/2, provided the contribution does not exceed your earned income for the year and you meet Modified Adjusted Gross Income (MAGI) eligibility guidelines. There is currently no age limit for contributions to a Roth IRA.

Terms of Use What is a Roth IRA? The purpose of a Roth IRA is to put away money for retirement. Roth IRAs offer tax-free growth and tax-free qualified withdrawals in retirement. Roth IRAs are funded with after-tax dollars unlike Traditional IRAs, so the contributions are not tax deductible but qualified distributions are tax-free. To be classified a Roth IRA, the account or annuity must be designated as a Roth IRA when it is set up. Under recent law, employers can now offer Roth SEP IRAs and  More...