401(k) is an employer-sponsored retirement savings plan that allows employees to stockpile and invest a part of their pay check before the taxes are deducted. Taxes are paid only after the money is withdrawn from one’s account. 401(k) contributions can ease up your taxable income and help slash your tax bill. For instance, if you […]
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What Is Roth IRA? | Roth IRA Rules
Roth IRA: Similar to the traditional IRA, Roth IRA is an individual retirement account which allows an individual to keep aside a specified amount of after-tax income every year. In contrast to the traditional IRA, this arrangement allows earnings and withdrawals after age 59½ and a half to be tax free. Eligibility on Roth IRA […]
Foreign Tax Credit (FTC)
Foreign Tax Credit (FTC): If you are earning some taxable income from a foreign country and you are not a legal resident of that country, then you are subjected to pay relevant taxes to that foreign country, further to this the country where you are permanently residing and of which you are a legal citizen, […]
Flexible Spending Account
Flexible Spending Account (FSA) also recognized as flexible spending arrangement is one of the obtainable options to avail tax benefit and allows you to spend this pre-tax money for paying eligible health care expenses or eligible non-medical expenses, even purchase of certain qualified medical equipment like diagnostic devices, bandages, crutches. FSA is being set up […]
Wash Sale Rule: Benefits And How To Avoid It?
What Is The Wash-Sale Rule? A wash sale occurs when a trader buys and sells the same stock, or substantially similar security in order to claim a loss within 30 days. How Does Wash Sale Occur? Wash sale occurs in one of the two ways mentioned below. A substantially identical security is purchased or sold […]