What is Tax Rate? Tax Rate is a key indicator of your financial health. It's the percentage of your annual gross income that goes to taxes. Total Annual Taxes Paid / Total Personal Income = Tax Rate Example: Assume your annual income is $300K. If you pay $87,600 in...
Most people do not have a great way to monitor their finances and assess their financial health. Tools like Mint and Personal Capital let you see all your accounts in one place and track your spending. This helps to some degree, but it falls short in answering key...
If you're over age 70.5, you can make a Qualified Charitable Distribution from your IRA. You pay no tax, and neither does the charity. This is a tax-smart way to give during your lifetime. Background When you withdraw from a pre-tax retirement account, you normally...
There are three types of investment accounts. This article gives examples of each type and how it is taxed. Types of Investment Accounts The three types of investment accounts are: Pre-tax. Tax-free. Taxable. Pre-Tax and Tax-Free Pre-tax and tax-free accounts are also...
Having a false tax return filed in your name delays your refund and costs you time and energy. Here's how to prevent this quickly and easily. Background Someone who has your SSN can file a false tax return and claim a refund fraudulently. This is called taxpayer...
When can you withdraw from your IRA? This is really a three-part question: When can you withdraw? What tax will you owe? What penalty will you owe? See also our companion post: When can you withdraw from your 401(k)? When can you withdraw from your IRA? You can...
If you're savvy enough to use your HSA for retirement, here are some HSA pro tips to squeeze out the most value. Save receipts You should be paying current medical expenses from your bank account, not your HSA. But you'll want to reimburse yourself from your HSA in...
This article shows what you lose if your disability insurance is taxable. Say you earn $300K and have a group policy at work that covers 60% of gross income up to $15K/month. Your max benefit is $180K/year ($15K x 12 months). Taking a 40% pay cut if you become...
Most people spend their HSA money on current medical expenses. This is fine, but using an HSA for retirement is even better! HSA as a retirement account A Health Savings Account (HSA) lets you deduct your contributions, and pay medical expenses tax-free. Thus, an HSA...
Many ER docs reluctantly cut their giving in retirement, to make sure their nest egg lasts. The Charitable IRA is a powerful way to stay financially secure and still benefit charity. The giving dilemma in retirement Even if you gave generously during your working...
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