The idea behind this setup is that you can prepay your income taxes today and take tax-free withdrawals after you retire. Learn more about how Roth 401(k) accounts work to decide whether this tool might be a good fit for your investment goals. Roth 401(k) vs. Traditional 401(k) Accounts The easiest way to understand how 401(k) accounts work is to compare them to traditional 401(k) accounts. Availability Roth 401(k) contributions have only been permitted since 2006....

Many businesses are pass-through (sometimes called “flow-through”). Pass-through businesses make up over 50% of total business income, through 2015 in the U.S. Is Your Business a Pass-Through Business? Pass-through tax treatment means that the taxes of a business are literally “passed through” to the tax returns of the individuals who own the business. The tax deduction isn’t taken by the business, but it’s taken by the individual taxpayer(s) who own the business....

Personal Income Taxes Pennsylvania is one of only a few states with a flat tax system. The state assesses a 3.07% tax rate regardless of how much income you earn. But that doesn’t necessarily mean your Pennsylvania income taxes will be lower than in states that have a progressive income tax. Unlike other states, Pennsylvania doesn’t allow taxpayers to claim a standard deduction or personal exemption. And it only has four categories of itemized deductions: contributions to medical savings accounts, health savings accounts, 529 college savings plans, and 529A Pennsylvania ABLE Savings Account Programs....

May was the best month since January for the pending home sales index, a measure of contract signing activity, the National Association of Realtors said in a monthly report Wednesday. The index increased 8% in May compared to the month before, rebounding from a 4.4% drop in April. “May’s strong increase in transactions—following April’s decline, as well as a sudden erosion in home affordability—was indeed a surprise,” said Lawrence Yun, chief economist at the National Association of Realtors, in a statement....

Prices for the things we buy have been rising faster than incomes, so household buying power has been diminishing, data released Thursday by the Bureau of Economic Analysis shows. Yet, somehow, people have ramped up their spending—again. Even though income rose a healthy 0.7% over the month (thanks to the great job market), taking inflation into account, after-tax personal income has actually fallen 3% over the last 12 months as of October....

Predictable Trends That Affect Gas Prices Gas prices are highly volatile. That’s not just because drivers have few other choices, but also because so many events affect them. Before you can get into the nitty-gritty of predicting tomorrow’s gas prices, you need to be aware of the seven underlying factors that contribute to the price you pay at the pump. They will help you predict both seasonal changes and sudden spikes in gas prices....

Savings Needs Shovel as much money into retirement savings as you can. If you start saving for retirement in your 20s, the general rule of thumb says that you can get away with saving only 10 percent to 12 percent of your take-home pay. If you’re starting in your forties, the general rule of thumb says you need to increase your savings rate to 15 percent to 20 percent. Does that sound daunting?...

Renting to Section 8 tenants has a number of benefits, including guaranteed monthly rent payments from the government and a large pool of prospective tenants. But it also has potential downsides, such as additional rules and regulations you need to follow. Consider these risks of the Section 8 program for landlords before deciding if it’s right for you. Security Deposits Are Not Paid by Section 8 The Section 8 program provides housing vouchers that subsidize tenants’ monthly rent....

Company Overview Founded in 1840, Sagicor has had a long-standing reputation of stability within the insurance industry. Not only does the company have operations in America, but it also has offices in 22 countries besides the U.S. including countries in Latin America and the Caribbean. The U.S. operations span 45 states and the District of Columbia. Life insurance and annuity products are sold through a network of over 6,500 independent agents nationwide....

In most cases, a resignation letter is a formal letter of intent to resign (typed, printed, and signed). However, depending on your job and the standard form of communication, it may be sent via email. Some companies’ human resources departments require that resignations be submitted on paper—either as a printed letter or an email attachment. For others, notification by email is acceptable. Here are two samples of intent-to-resign letters to use as an example for a letter you may want to send to your employer when you are leaving a job....

Formation History Congress created the SEC in 1934 to restore the public’s confidence in financial markets after the 1929 stock market crash. The first chairman was Joseph Kennedy, President John F. Kennedy’s father. The Securities Exchange Act of 1934 created the SEC itself. To succeed, public corporations had to register their stock sales. That meant they had to identify their major stockholders. Before the Act, a small group would hold a majority share of stocks....

You should have some insight on what qualifies as short-term investing before you part with your dollars. Definition of Short-Term Investing “Short term” often refers to a holding period of less than three years. Many securities, including stocks, mutual funds, and some bonds and bond mutual funds, are not suitable for periods of less than three years. Most investors have long-term plans. They’re saving for goals such as retirement, with horizons spanning many years or even decades....

Sincerely, Longtime Saver, First-Time Buyer Dear Saver, Buyer, Congratulations on buying a home—and for locking in such a low interest rate. With mortgage rates currently hovering around 6.7%, you’re likely saving hundreds of thousands of dollars compared to what you would pay if you were making that same purchase right now. Deciding whether you should pay down your mortgage or save is really a game of numbers. Of the varied rates on high-yield savings accounts, only a few offer interest of 3%, which is higher than the interest you’re paying on your mortgage....

Does Your Insurance Cover Windshield Damage? Your auto insurance may pay for your windshield damage, but it depends on the type of coverage you have and the cause of the damage. Standard liability insurance only covers damage you cause to other vehicles, so it wouldn’t be helpful here, but the following types of coverage can usually help. Comprehensive Coverage Comprehensive coverage pays for damages to your vehicle that result from non-collision events (such as windstorms, floods, or hitting an animal)....

Note that your bank advisor is not a free financial advisor. Generally, there is a minimum amount that it wants you to continue to have invested there to maintain the services. You may want to work with your bank because you already have a relationship. However, it is important to make sure your bank’s investment services are the right fit for you. What Are the Advantages of Working With My Bank?...

When you have a pension, you have a predictable, stable source of income. Some financial advisors would then suggest that a pension fulfills the role of bonds in your portfolio. So, if you have a larger pension, you can be more aggressive with your investments and allocate more to stocks. How to Allocate Based on Your Income Needs Let’s take a look at two retirees, each of whom needs about $60,000 a year to live comfortably in retirement....

For most businesses, the due date for filings 2021 tax returns was April 18, 2022. Sole Proprietorships A sole proprietorship business is an extension of the individual taxpayer who owns and runs it. Its year-end is December 31, and the tax return due date is the same as the individual’s—normally April 15, except it was April 18 in 2022. Sole proprietors file Schedule C with their personal tax returns to arrive at their net taxable business incomes....

The small business accounting function is important since it allows the business owner or the accountant to analyze both historical and current financial data in a manner that helps the different stakeholders. In larger small businesses, there is typically a financial manager who is the recipient of the accounting information and performs different types of financial analyses. There are three types of small business accounting necessary to provide financial information to a number of different stakeholders....

Choose a footrest to accommodate your lifestyle and needs. Will you be using it in your office or when you’re traveling? Do you have a stationary desk or a standing desk? Then, look into the specs of the footrest that you want. Many footrests are made from foam, wood, or plastic. Your choice should ultimately depend on whether you prefer a solid or soft material. And often—but not always—footrests are height- and tilt-adjustable to accommodate body size....

Today, officials at the Federal Reserve are meeting to discuss how much they’ll hike the central bank’s benchmark interest rate as part of their ongoing campaign to control inflation. They’ll announce what they decide tomorrow afternoon, and most experts are looking for another 75 basis-point jump (a hefty chunk by historical standards) but an aggressive 100-point hike isn’t out of the question. A higher fed funds rate means it’s more expensive for banks to borrow money, so they’ll likely charge you more interest on your credit cards and loans....