Let’s take a look at how taxation works with contributing to and withdrawing from Roth IRAs, as well as how taxes apply to other types of retirement accounts. Roth IRA Contributions Aren’t Pre-Tax Roth IRA contributions are made with income that’s already been taxed. Your contributions are not tax deductible, so investments in these accounts are not considered to be pre-tax investments. Qualified distributions are those that meet certain requirements, such as if you receive them after retirement age, which the Internal Revenue Service (IRS) sets at 59½....

It can be tempting to withdraw the equity that’s built up in your home. Let’s take a look at when home equity becomes taxable, how to tap into the equity you have, and available tax deductions when using your home equity. When Home Equity Becomes Taxable Home equity isn’t taxed when you haven’t tapped it. However, if you’re looking to take advantage of the equity you’ve built, you’re probably wondering when it becomes taxable....

Most parents with kids at home have been getting payments automatically, but those who don’t usually file tax returns—often because they don’t earn much money—must register to receive them. If that’s you or someone you know, you have until Nov. 15 to register with the official online tool from the IRS or the more user-friendly getctc.org website. Once you do, the IRS will catch you up, distributing half the total value of the credit (up to $1,800 per child) on Dec....

Leadership refers not only to managing others, but also to being a strong example for your coworkers. Preparing for leadership-focused questions in advance of the interview will help you give strong answers in the moment and feel confident both before and during the interview. Use the sample questions and “Best Answers” listed at the end of this article to help you prepare your own personalized responses. How to Answer Interview Questions About Leadership Prepare for interview questions about leadership by thinking about the leadership skills that are most important for the position....

Since they were introduced in the early 1900’s, sovereign credit ratings have had a turbulent history. Moody’s and other ratings agencies were taken by surprise after the Great Depression caused 21 out of 58 nations to default on their international bonds between 1930 and 1935. From 1960 to 2020, 147 governments have defaulted at least once on their domestic or foreign currency debt. In this article, we will take a look at where to find sovereign ratings, how they’re calculated, and the effects these ratings have on international investments....

Review a complete explanation of what leverage is, how it impacts investors, and the kinds of leverage you may hear analysts refer to. What Is Leverage? When someone goes into debt to acquire something, this is also known as “using leverage.” The term “leverage” is used in this context most often in business and investing circles. While less common, leverage can also refer to the use of something to achieve more than you would have been able to without it....

Some life insurance policies provide access to funds while you’re still living through so-called living benefits. Living benefits offer flexibility, but it’s important to choose policy features carefully—it’s tempting to expect your life insurance policy to do too much. When that happens, you might end up with coverage that falls short of what you need. We’ll review how living benefits work and when they make the most sense. What Are Living Benefits in Life Insurance?...

Company Background Lincoln National Life Insurance Company is a subsidiary of Lincoln Financial Group. The parent company was founded in 1905, and it’s headquartered in Radnor, Pennsylvania. In 2021, it was ranked 172 on the Fortune 500. It’s publicly traded on the New York Stock Exchange under the symbol LNC. In 2016, the company landed number 337 on Barron’s 500 list. As of December 2020, the Lincoln Financial Group managed $365....

APLE Grants on Hold The APLE program forgave up to $11,000 in student loans in exchange for four years of teaching at eligible schools. Teachers in the program had to work full-time and with no breaks in service. A graduating teacher had to complete their first year of teaching within 24 to 36 months of graduation. An additional, $8,000 of teacher loan forgiveness was available for the following teachers: An additional $1,000 per year ($4,000 max) for teaching special education, science, and math....

Learn what these programs are, how they work, and what you need to do to qualify for them. Low-Income Home Loan Overview There are several low-income home loan options to choose from. Some are outright loans while others provide assistance to purchase a home. We’ll cover the following programs below: Fannie Mae HomeReady mortgageFreddie Mac Home Possible loansFederal Housing Administration (FHA) loansDepartment of Agriculture (USDA) loansGood Neighbor Next DoorVeterans Affairs (VA) loans...

CPA Gail Rosen answers some questions that might help you prepare for a possible IRS audit of your home office. I have some personal photos and decorations in my home office. I figure you would find these in a business office, so I don’t think those would be a problem. Or are they? Photos and decorations are OK, but be careful. If the decoration is a putting green or a dart board, this can indicate that you’re doing something personal there....

For the week through Jan. 22, the average purchase loan amount reached a new record high of $395,200, according to the Mortgage Bankers Association’s (MBA) weekly survey released Wednesday. The MBA has been tracking purchase loan amounts since 1990 and the last record high of $386,500 was for the week through Dec. 25, 2020. The jump in average loan amounts may reflect an unprecedented lack of inventory as well as borrowers’ ability to finance larger mortgages as interest rates continue to hover near record lows....

The economic stimulus package helped end the Great Recession by spurring consumer spending. Most importantly, it instilled the confidence needed to boost economic growth. It also aimed to restore trust in the financial services industry. It limited bonuses for senior executives in companies that received the Troubled Asset Relief Program (TARP) funds. How It Worked The American Recovery and Reinvestment Act had three spending categories. It cut taxes by $288 billion and earmarked $224 billion in extended unemployment benefits, education, and health care spending....

What Are Office Supplies? Office Supplies are the traditional office items, like pens, staplers, paper clips, USB thumb drives, and printer ink cartridges that get used up by employees. Also included in office supplies are: Record keeping supplies, like invoices and sales receiptsJanitorial and cleaning suppliesBathroom tissuePlaces to keep supplies, like fixing cabinets and storage lockersPaper plates, paper towels, and plastic utensilsBeverages for the employee break room The IRS also includes postage in office supplies, but large amounts of postage for shipping products are classified differently (in cost of goods sold, as described below)....

Some investors consider their portfolio to have beat than the market when it returns more than the stock market annual average of 7% to 10%. Investors and speculators are always on the lookout for investments that will beat the market. Of all the methods that exist, the ones that offer low and moderate risk are the ones that continuously perform over time. Market Risk No matter what circumstance the markets are in, there is always a risk when investing....

The next round is scheduled to go out Sept. 15, but next week is the deadline to make any changes, including through a brand-new feature allowing families to update their mailing address, the agency said Friday. The IRS’s child tax credit update portal lets you choose between paper check or direct deposit, change the bank account used for direct deposit, change your mailing address, or stop the payments altogether. Future updates to the portal will let families update the number of children they’re claiming or report a change in marital status or income, the IRS said....

From its early beginnings as an auto insurance company for educators, PEMCO insurance grew to include home, umbrella, renters, condo and boat insurance. PEMCO Life insurance company sells low-cost life insurance policies to members of the teacher’s credit union. PEMCO’s company headquarters is based in Seattle, Washington. There are approximately 650 employees providing insurance to customers of the Northwest in the states of Washington and Oregon. Financial Stability and Customer Service Ratings PEMCO Insurance Company has a “B++” Good rating with A....

As many Americans reassess their financial lives, The Balance asked several personal finance experts and influencers to share their own experiences from the past year and how they’ve informed their perspectives on budgeting, investing, and achieving financial independence. Today, we speak with Kevin Ha, aka the Financial Panther. When the pandemic began its surge in the U.S. in March 2020, Kevin Ha quickly learned the value of a financial “safety net....

Your proof of insurance documentation is that little card given to you by your insurance carrier that shows you indeed have insurance on your vehicle. It is sometimes referred to as an auto insurance card, a vehicle insurance card, or a binder. If you never file an insurance claim, the piece of paper is all you get for your money, other than peace of mind. It is a big “if” though; most people do not go a lifetime without ever filing a claim....

Older taxpayers often find themselves in a position where their homes’ values have increased so significantly over the years that their tax bills have become almost prohibitive at a time when they’re living on fixed incomes. Several tax authorities realize this and have taken steps to ease this particular tax burden for older adults. What Are Tax Exemptions? Exemptions don’t have any effect on tax rates, and they don’t typically subtract from your tax bill....