Withdrawals made prior to age 59 1/2 are generally subject to both income tax and a 10% penalty; however, there may be exceptions. Consult with your financial institution about all available methods for withdrawing funds from your IRA. Some may provide same-day wire transfers, while others might send you a check; they’re there to help find you the fastest and least expensive ways of accessing them. Unreimbursed Medical Expenses The IRS permits withdrawals from an IRA without penalty to cover...
Read More
ETFs offer investors greater market diversification by tracking specific market indices or asset classes, and can be listed and traded on exchanges just like individual stocks. ETFs typically boast lower expense ratios and more tax efficiency than mutual funds; however, their tax treatment can vary – it’s essential to do your research first! Before investing in one. Expense Ratios Fees associated with investing can quickly sap away at returns, so it is crucial that all types of investment costs, including...
Read More
SSDI benefits may be subject to taxes depending on your household income. The IRS uses half of your SSDI income plus all sources of household income to determine if any additional taxes are owed. Disability recipients typically don’t owe taxes on their Social Security Disability Income payments; however, one-third do. This is typically due to other sources of household income or a spouse’s earnings. Benefits are tax-exempt in Oregon Social Security Disability Insurance, funded through payroll taxes, provides modest benefits...
Read More
When withdrawing funds from an IRA before age 59.5, the IRS typically applies an additional 10% penalty on top of whatever taxes may be owed; there are however exceptions. Your IRA can help pay for qualified higher education expenses such as tuition fees and books – room and board expenses are also covered. First-time homebuyer However, there are two instances when withdrawals from an IRA don’t incur the 10% penalty: when purchasing a home and providing funds for its birth...
Read More
Gold bars and coins provide tangible assets that can be physically held, while Exchange-Traded Funds use futures contracts to track gold price movements. Depending on their legal structure, these funds may be subject to different tax regulations. Physically-backed metal ETFs such as SPDR Gold Shares (GLD), iShares Gold Trust (IAU), and Aberdeen Standard Gold ETF Trust (SGOL) are taxed similarly to collectibles, with gains on sales subject to the 28% capital-gains tax rate for collectors. Taxes on Short-Term Capital Gains...
Read More
