Posts Tagged ‘Tax Deduction’


When to Borrow Against Your 401(k) Plan

While you don’t necessarily want to borrow against your 401(k) plan, there might be some situations when you would consider it.

401(k) Plan Loans

The Internal Revenue Service (“IRS”) allows employers to allow employees to borrow against their 401(k) plan. For an employee to borrow against his 401(k) plan this loan provision must in the plan document. The maximum that can be borrowed is one-half the account value, not to exceed $50,000.  The employee must … Continue reading »


3 Reasons I Encouraged My Son to Open a Roth IRA

I recently suggested to my son that he open a Roth IRA.  Here are the 3 reasons why.

 

 1) He’s Young

The Roth IRA offers a huge advantage over a regular IRA. This is particularly so for younger people.  With the IRA you are (generally) allowed a tax deduction for this.  The IRA grows tax deferred. You can begin to take distributions after age 59 1/2 without penalty.  You must begin taking distributions after … Continue reading »


How to Explain a Roth IRA to Your 25 Year Old

 

Roth IRA Eligibility

To be eligible for a Roth IRA you need to have earned income.  This is typically from wages earned as an employee.  Earnings from self-employment also qualify. The annual contribution is the lesser of your earned income or $5,000. The contribution can be made at any time during the year and up to April 15th following the year.


3 Proven Reasons a Small Business Should Consider a SEP Retirement Plan

A Simplified Employee Pension (SEP) is an employer sponsored retirement plan.

 

Here are 3 proven reasons to consider this plan.

 


6 Easy Steps to Navigate an IRS Audit and Save You (Tax) Money

1) Determine if this is an IRS Field, Office or Correspondence Audit

With a Field Audit, the audit will be done at your place of business. Most taxpayers requests that the audit be moved and done at your CPA’s office. The auditor however still has the right to visit your office.

In an Office Audit, the audit will be done at the local IRS office. You get to go see them.

In a Correspondence Audit, everything is done through … Continue reading »


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