Here’s how they work Answers to the most important questions about the Roth 401(k) The new postcard-sized Form 1040. As the name suggests, a Roth 401(k) combines features of the traditional 401(k) with those of the Roth IRA. It’s offered by employers like a regular 401(k) plan, but as with a Roth IRA, contributions are… Read More

Sitting down to do your taxes in the next few weeks – or talking with your tax preparer – will involve tackling the most sweeping changes in the federal income tax rules in more than 30 years. You’ll need to keep in mind that more than 600 rule changes took place under the Tax Cuts and… Read More

Perhaps no other retirement planning tool or strategy has the potential to be as powerful for pre-retirees, and even recent retirees, as Roth conversions. There is a lot of confusion surrounding Roth conversions, but the rules are actually pretty straightforward (and much less complicated than Roth IRA contribution rules and regulations). A Roth conversion is… Read More

After the Tax Cuts and Jobs Act, it’s a whole new ballgame. If you have lots of dependents, you may not be pleased with the changes in the Tax Cuts and Jobs Act. The IRS has started accepting returns and tax season is officially under way. Almost all of the Tax Cuts and Jobs Act… Read More

Connie Wegge is feeling good about her situation this tax season. Not only did she and her husband get a small pop into their take-home pay over the past year, they also are getting about $100 more in their federal tax refund compared to last winter. “In the beginning, I was a little nervous” about… Read More

You don’t have to be a credit expert to know that tactics like keeping your debt low and paying bills on time are proven ways to improve your FICO score. But they aren’t the only ways to see a spike. These lesser-known tactics can also do the trick—fast. Apply for new credit. Your credit utilization ratio,… Read More

The American Institute of CPAs voiced concerns about the impact of the partial government shutdown on both taxpayers and tax practitioners in a letter to officials at the Internal Revenue Service and the Treasury Department, a day before President Trump announced a deal to reopen the affected government agencies for three weeks. In a letter Thursday to… Read More

Understand tax-filing fundamentals, from due dates to itemized deductions. FILING TAXES CAN FEEL daunting, regardless of your income bracket, filing status or familiarity with current rules and regulations. Fortunately, getting important documents prepped and learning basic concepts, including how taxes are assessed and collected, can help make the process easier to navigate. After all, even if… Read More

Here’s how to determine what tax bracket you fall into and its impact on taxes owed. DETERMINING WHICH TAX bracket your income falls into is surprisingly complex. But performing this calculation can be instrumental in helping you find strategies to reduce your federal tax bill and double-check any calculations done by a tax-software program or tax preparer. Taxpayers… Read More

If you follow this guide closely, you may finally master your money. Start living within your means. You’re in good company if you’re living paycheck to paycheck, says Jon Brodsky, U.S. country manager for personal finance comparison website Finder.com. “It’s common in every single income bracket,” he explains. While Brodsky argues people shouldn’t beat themselves up… Read More