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Total Limits on 401(k) Employer and Employee Contributions Total 401(k) contribution limits refer to the maximum contribution amount by both employer and employee. In 2022, the total contribution [...]

What is a 401(k) plan? A 401(k) is an employee-sponsored retirement savings account. With a 401(k), individuals invest pretax funds directly from their paychecks into an employer-sponsored [...]

Tax deferral refers to the action of delaying the payment of taxes to some point in the future.   Some taxes can be delayed for an unlimited amount of time, and others may be taxed at a [...]

Below-the-line deductions, also known as itemized deductions, include any deduction reported under the line for AGI calculation on your tax return. Each tax season, you can choose whether to [...]

Before we get into above-the-line deductions, let us start with some helpful definitions: Deduction: another way of saying ‘subtract.’ In the context of a federal tax return, a deduction is an [...]

On March 29, 2022, the House of Representatives passed the Securing a Strong Retirement Act (“the Act”) with a bipartisan vote of 414 to 5. The Act has been nick-named the “Secure Act 2.0” as it [...]

An older RMD age will allow IRA owners to defer withdrawals, allowing assets to continue growing for longer. Removing the age limit for individuals to contribute to their IRA accounts benefits [...]

Important changes in the SECURE Act include: The required minimum distribution age (“RMD”) increased from 70.5 to 72 years old. Removal of the age limit for IRA contributions. The [...]

The “SECURE” Act stands for ‘The Setting Every Community Up for Retirement Enhancement Act’ and was signed into law by former President Donald Trump on December 20, 2019. The law [...]