What is the Right Amount to Save for Retirement?

There are plenty of calculators out there so I won’t bother with that, but the question to how much you need to save for retirement needs to be in your thought process. Saving for retirement is difficult when it matters most. Many people reading this are in there 20’s, 30’s and 40’s. The earlier you start to save the more you benefit from compounding interest. If you start saving around five thousand dollars a year and put it into an index fund returning about 8% in your early twenties, you will...
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401k Rollover to an IRA

A 401k rollover to an IRA account typically happens when you leave a job, become disabled or reach age 59 ½. Although you can rollover your 401k to a 401k at your new employer, many people choose to put their money into an individual 401k account. If you have had several jobs that each had their own 401k, moving your accounts to and individual IRA can make management of your funds easier and more convenient. Instead of having multiple accounts and investment options to track you can manage a...
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Taking an IRA Distribution

The rules for taking an IRA distribution from an individually owned IRA depend upon the type of account. There are two types of individually owned IRAs – traditional and Roth. The treatment of traditional and Roth IRAs differs significantly. For both types of accounts, distribution is governed by the age of the participant as well as the reason for the distribution. If you have a traditional IRA, your contributions might be tax deductible but your distribution may be taxable. To avoid tax whe...
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How to Qualify For Spousal IRA

Just because you are based at home or taking a breather from the workforce, it doesn’t mean you shouldn’t start saving for your senior years. Today’s generous federal policies are helping more and more Americans accumulate that next egg which will see them through their retirement. If you are wondering about these new IRS guidelines, it will be to your advantage to research on spousal IRA to see how you can save up for the rainy days. If you are the non-working spouse in a marriage, you can m...
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How to Set Up a SEP IRA

Simplified Employee Pension Individual Retirement Account or SEP IRA is a retirement plan under IRA. It is intended to benefit the self-employed individuals and the small business owners. This includes sole proprietorships, partnerships, corporations, and LLCs. When you own a business, SEP IRAs should be established separately by you and any eligible employee. The employer’s contributions are then made into each eligible employee’s retirement plan. If you are looking for an easy and low-co...
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