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Northeast Ohio financial expert offers tax tips for the unique year that was 2020

Northeast Ohio financial expert offers tax tips for the unique year that was 2020 Updated Feb 11, 2021; Posted Feb 11, 2021 Rapidly changing tax laws have been complicated by various pandemic-related considerations that will likely affect many in Northeast Ohio. (Chris M. Worrell, special to cleveland.com) Facebook Share CLEVELAND, Ohio Although rapidly changing tax laws have come to be expected, the pandemic adds a layer of complexity to 2020 returns. Fortunately, Bryan Bibbo of J.L. Smith Group in Avon offers a number of simple tips that will help ensure the best possible outcome for all Northeast Ohio tax filers. Many people nationwide missed out on a 2020 stimulus payment. According to Bibbo, the Recovery Rebate Credit will compensate dollar for dollar those who missed out, whether they owe taxes or not.

It s Not Too Late To Get These Tax Breaks for 2020

It’s Not Too Late To Get These Tax Breaks for 2020 GOBankingRates 2/2/2021 Kimberly Lankford © shapecharge / Getty Images Shot of a young couple using a laptop and going through paperwork at home. Even though 2020 is over, it’s not too late to take advantage of some extra tax breaks for the year. But you need to take action soon and contribute to these tax-advantaged accounts before April 15. Don’t overlook these extra opportunities to save money on your 2020 taxes or build tax-free savings for the future or both. Tax-Advantaged Savings in an IRA Even if you already contributed to a 401(k) or other retirement-savings plans at work, you still have time to contribute to an IRA, too. You have until April 15 to contribute up to $6,000 to an IRA for 2020, or up to $7,000 if you were 50 or older last year.

What Is an IRA?

What Is an IRA? © Rangely García / Money Money-101-Whats-an-IRA An IRA, or individual retirement account, is an investment tool that allows you to grow cash on a tax-deferred basis until the money is withdrawn. The Internal Revenue Service created IRAs as another way to contribute to your retirement other than a 401(k). What You Should Know: There are certain exceptions that allow the early withdrawal of your IRA contributions penalty-free. Generally, however, withdrawing earnings before the age of 59 ½ is subject to a 10% tax penalty. You can own more than one type of IRA. Under the CARES Act, you can withdraw up to $100,000 from your Roth or traditional IRA penalty-free in 2020 if you’re under 59 ½ and have been affected by COVID-19.

Best Retirement Plans For You - Channel3000 com

Channel3000.com December 18, 2020 1:13 PM Kat Tretina - Forbes Advisor Posted: Updated: December 20, 2020 6:06 AM When it comes to retirement planning, Americans are often way behind. In fact, in 2019, almost half of households headed by someone 55 or older had no retirement savings at all, according to the U.S. Government Accountability Office. Many people won’t have enough money to live comfortably and will rely solely on Social Security to pay for their living expenses. But retirement doesn’t have to look this way for you. Here’s everything you need to know about the best types of retirement plans available and how to decide which one is best for you.

What Is A Simplified Employee Pension IRA (SEP IRA)?

Channel3000.com December 18, 2020 12:48 PM Kate Ashford - Forbes Advisor Posted: Updated: December 20, 2020 6:06 AM A Simplified Employee Pension (SEP) plan lets self-employed individuals and small business owners establish individual retirement accounts, called SEP IRAs, for themselves and their employees. The SEP IRA works a lot like a traditional IRA, but there are additional rules and benefits you need to understand to decide if this retirement plan is right for your small business. The Benefits of SEP IRAs Don’t let the word pension fool you: SEP IRAs are defined contribution retirement plans. Think of SEP IRAs as part 401(k) plan and part traditional IRA, except employers make contributions to the plan. An SEP IRA offers tax-deferred growth for contributions, and withdrawals are taxed as regular income when employees make withdrawals in retirement.

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