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March 11, 2021 6:20 AM Kat Tretina - Forbes Advisor
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March 13, 2021 4:36 AM
If you’re new to saving for retirement, all the unfamiliar jargon can be off putting. Here’s a primer on 20 of the most common retirement terms, outlining what they mean and why they’re important. Start here to build your retirement planning confidence.
1. 401(k)
A 401(k) is the most popular employer-sponsored retirement savings plan. With a traditional 401(k), you contribute a portion of each paycheck to the plan, pick your investments and don’t pay taxes on the contributions or earnings until you start taking withdrawals. As of 2021, 401(k) contribution limits are $19,500 per year, or $26,000 if you’re 50 or older.
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Like most Americans, you probably want to get through your taxes as quickly as possible. Since the Tax Cuts and Jobs Act (TCJA) was passed in 2017, fewer of us will itemize, and those who do may find fewer deductions available. However, do not rush through your return so quickly that you simply take the standard deduction and ignore deductions that can bring you a healthy refund. Consider these commonly overlooked tax deductions.
1. Charitable Contributions – You may not feel that you give enough to charity for it to matter, but every little bit helps when itemizing deductions. Any gift to a qualifying charitable organization may be deducted. The IRS website has an online search tool to verify the qualified status of any organization, but the receiving organization should be able to provide you with proof. For tax year 2020, you may deduct donations worth up to 60% of your income.
9 Crucial Tax Deductions kxly.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from kxly.com Daily Mail and Mail on Sunday newspapers.
14 Last-Minute Moves that Can Boost Your Tax Refund
On 3/8/21 at 7:00 AM EST
More than 60 million taxpayers have already filed their tax returns this year. Average refund so far: $3,021.
Drew Angerer/Getty Images
More than three-quarters of the nearly 60 million taxpayers who have already filed their 2020 returns will be getting a refund this year, so far averaging just over $3,000, according to the IRS. While a check that big will certainly come in handy given the continued challenges of the pandemic economy, chances are, with a few smart steps, you can do even better boosting the amount you get back from Uncle Sam by a few hundred dollars or more, or cutting the amount you owe if you re one of the unlucky group who ll end up with a tax bill instead of a refund.
ASHEVILLE, NC / ACCESSWIRE / March 6, 2021 / The SEP IRA, or the Simplified Employee Pension IRA, can be a powerful way for investors to put money aside for retirement. But what are the more specific advantages