Withdrawing funds from an Individual Retirement Account (IRA) prior to age 59 1/2 typically incurs a 10% penalty plus income taxes; however, in certain situations you may be exempt from these penalties and withdraw funds without incurring them. Your IRA allows for withdrawals that exceed 7.5% of your adjusted gross income for unreimbursed medical expenses that exceed 7.5%; other exceptions include first-time home purchases and disability premium payments. Qualified distributions Rules regarding IRA withdrawals can be complex and vary depending...
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Gold ETFs can provide an effective means of diversifying your portfolio; however, investors must understand how their tax obligations apply. Physical gold and ETFs backed by physical gold are treated as collectibles and subject to tax at a top 28% capital gains rate, but ETFs not structured as trusts with physical gold can avoid this tax burden. Taxation of long-term gains Since war, inflation, and stock-market volatility are compelling investors to seek safe haven investments, gold ETFs have emerged as...
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Due to recent law changes, specific rules now apply to beneficiaries of an inherited Roth IRA. You should consult with a financial advisor regarding specifics that apply to you and your situation. Surviving spouses may treat an inherited account as their own and avoid required minimum distributions by stretching withdrawals over their lifespan. Other beneficiaries must adhere to a schedule of RMDs according to their age and must use up the account within 10 years. Distributions Distribution details vary depending...
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If your tax rate will increase significantly upon retirement, converting funds to Roth accounts might make sense – although the rules surrounding their conversion can be complex. Under the wrong hands, a rollover could become a hidden tax bill. Consulting a qualified financial professional is key when planning such transactions. Tax-Free Withdrawals Roth IRA earnings can be withdrawn tax free after five years or if their owner meets specific eligibility requirements (i.e. they’re over 59.5). This is an advantage over...
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U.S. laws mandate that precious metal dealers report purchases paid for with cash exceeding $10,000 as part of an effort by the US government to monitor commodity exchanges and combat money laundering. Gold dealers who conduct transactions worth more than $10,000 must complete Form 8300 to collect basic buyer details such as name, address, social security number and license registration number. What is the IRS? Everybody resents taxes at some point during the year, yet even the most progressive citizens...
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