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 59 and a half to be tax free. Eligibility on Roth IRA […]

Qualified Business Income Deduction

What Is Qualified Business Income Deduction ? Qualified Business Income Deduction is the net amount generated from any eligible U.S. trade or business on qualified items of gain, loss, income and deduction. Only those items which are part of taxable income are counted. For tax years starting after December 31, 2017, qualified business income (QBI) […]

What is FICA Tax?

FICA Tax stands for Federal Insurance Contributions Act. The Federal Insurance Contributions Act is a federal payroll of the United States that modulates Social Security and Medicare tax payment. The country‚Äôs social security and Medicare programs receive contribution from the taxes paid as part of FICA Tax. People need to pay these taxes while they […]

What is Traditional IRA & Contribution Limits

What is a Traditional IRA? Traditional IRA: traditional individual retirement account is a tax-deferred retirement arrangement which lets individuals make investments by directing their pre-tax income. The IRA contribution limit has gone up from $5,500 in 2018 to $6,000 or $7,000 in 2019 if you are 50 years old or above. Even if you have […]