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 Is a Traditional IRA? A Traditional IRA (Individual Retirement Account) is a tax-advantaged retirement savings account that lets you save money for retirement with tax-deferred growth . That means your investment earnings aren’t taxed as long as they remain in the account — you pay taxes when you withdraw funds in retirement. You can hold cash, stocks, bonds, mutual funds, ETFs, CDs, and other investments inside a Traditional IRA. The tax treatment of your contrib  More...

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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 Definition: A 401(k) plan is offered by employers to allow you to set aside money for retirement on a tax-advantaged basis. You can contribute pre-tax dollars and then invest those dollars in the investment options provided by your employer for the purpose of saving for retirement. The earnings on your investments are tax-deferred until retirement. Your employer may also make matching contributions to your account. 401(k) plan limits: 401(k) Plan Limits 2026 Elective Deferrals $24  More...

Terms of Use People often associate trust funds only with the wealthy. But a trust actually can be an effective financial tool for many people in many circumstances. A trust is a separate legal entity that holds property or assets of some kind for the benefit of a specific person, group of people or organization known as the beneficiary . The person creating a trust is called the grantor , donor or settlor . When a trust is established, an individual or corporate entity is designated to oversee   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...

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...

Terms of Use Yes, you can access your Traditional IRA at any time, but withdrawals before age 59½ are generally subject to ordinary income tax plus a 10% early withdrawal penalty . For 2026, the 10% penalty is waived for several specific situations, including several new Emergency categories: Emergency Expenses: One withdrawal per year up to $1,000 for immediate personal or family emergencies. Domestic Abuse: Up to $10,000 (or 50% of the account) for victims of domestic abuse.   More...