Category Archives: Retirement Savings

Count the ways you can fund your myRA

A myRA (“my Retirement Account”) is a simplified Roth IRA that belongs entirely to you. Roth annual contribution limits apply to these retirement accounts and your funds are invested in government-guaranteed Treasury securities. You can choose to contribute to your account from your paycheck by completing a direct deposit authorization form and giving it to your employer. In addition, the… (more…)

Retiring From Income Taxes?

Full retirement doesn’t end your income tax obligations. You’ll owe income taxes on withdrawals from a traditional IRA or 401(k) plan, and you’ll owe taxes on investment income outside your retirement plans (interest, dividends, capital gains, etc.).  We cater to Bergen County CPA tax preparation in New Jersey since we are a Bergen County accountant firm. Also, if your income exceeds… (more…)

Supreme Court Denies Bankruptcy Protection for Inherited IRAs

Your retirement funds are protected from creditors even if you file for bankruptcy, with only a few limitations. This protection extends to funds in all government-qualified pension plans, including IRAs (traditional and Roth), 401(k)s, 403(b)s, Keoghs, profit sharing, money purchase, and defined benefit plans. A recent U.S. Supreme Court decision has held, however, that an inherited IRA is not a… (more…)

Switching Funds Can Bring a Tax Surprise

Many mutual fund companies allow you to switch funds without a penalty or commission, as long as you stay within their family of funds. There’s a catch though. Unless the funds are in a tax-deferred retirement account, you could owe income tax each time you make a switch. When you move money between funds, the IRS considers it a sale.… (more…)

Avoid Five Common Mistakes in Your 401(K) Plan

  Participating in a 401(k) or similar retirement plan is a tax-advantaged way to save for retirement. If you have the option of participating in a 401(k) plan, avoid these five common mistakes.  Our Bergen County CPA office offers you insight to this. * Failing to participate fully. Too many employees opt out of the plan or don’t contribute as… (more…)

Fund an IRA with Your Child’s Summer Job

If your child has a job this summer, encourage him or her to set up an IRA.  Our Bergen County CPA office offers you insight to this. The amount that can be contributed is $5,500 of the child’s earnings, whichever is less.  If you wish, you can even provide the cash for the IRA and let your child spend his… (more…)

Its a Good Idea to Know the Consequences of Borrowing from Your 401(K) Plan

Borrowing from your 401(k) can lead to tax surprises. Here are some tips to keep in mind if you are considering this option.  Our Bergen County CPA office offers you insight to this. When you borrow from your 401(k), you become both a borrower and a lender. Whether that’s a good idea depends on your personal financial situation – and… (more…)