With college costs almost certain to keep increasing each year, parents need to explore every possible tool available to meet the challenge of paying for higher education. Roth IRAs are not just for retirement savings. They can play a vital role in education savings. However, the rules can be tricky. Before you take a distribution from your Roth IRA to pay that tuition bill, be sure you understand the tax consequences.
In the wake of tax reform, more IRA owners are making use of the Qualified Charitable Distribution (QCD) strategy. This is a side effect of fewer people choosing to itemize and instead going with the larger standard deduction. If you are not itemizing, you cannot claim a tax deduction for your charitable contribution.
My daughter does not much care for broccoli. However, she knows it is for the greater good, and I insist she grow strong and healthy. As long as she lives under my roof, I could feed her broccoli for both lunch and dinner. Double broccoli is legal. But we both agree that would be excessively penal.
Being a small business owner is stressful enough. Now you're slammed with an unexpected tax bill. Through planning and execution, you can significantly reduce your small business tax bill.
A little house on Easy Street has one front door. It is a traditional IRA. There is a sign above the lone entry point the reads, “To All Those That Enter, Thy Earnings Will be Taxable.”
Getting stuck with an unexpected tax bill can be stressful and unsettling. Here are five ways to reduce your tax bill to a more manageable size.