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☆ How to save for retirement if your company doesn't offer a 401(k)
▼ + stars: | 2024-04-30 | by ( Mike Winters | ) www.cnbc.com time to read: +4 min

Even if your employer doesn't offer a 401(k) plan, it shouldn't stop you from getting the most out of your retirement savings. You have other tax-advantaged options available to save for the future, including individual retirement accounts, Roth IRAs or health savings accounts — all of which can help your money grow. However, only about 11% of Americans max out their 401(k) contributions. If you don't have an employer retirement plan like a 401(k), all of those contributions are tax deductible. And unlike traditional IRAs, you don't have to take minimum distributions at any point.

Persons: Roth, Justin Rucci, Roth IRAs Roth, Alyson Basso Locations: Newport Beach , California, Middleton , Massachusetts

☆ An 'often overlooked' retirement savings option can lower your tax bill, advisor says. Here's how it works
▼ + stars: | 2024-03-26 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

10'000 Hours | Digitalvision | Getty ImagesThere's still time to lower your 2023 tax bill or boost your refund with a lesser-known retirement savings strategy for married couples. One requirement for individual retirement account contributions is "earned income," such as wages or salary from a job or self-employment earnings. But there's an exception for single-income households: the spousal IRA. With income phaseouts for IRA deductibility and Roth IRA contributions, many wait until March or April for the previous year's IRA deposits. Even a $500 or $1,000 spousal IRA contribution could provide tax savings.

Persons: Roth, —, Judy Brown, Catherine Valega, Brown, deductibility Organizations: Getty, SC, H, D.C, Pew Research Center, Green Bee, Green Locations: Washington, Baltimore, Boston

Our experts answer readers' tax questions and write unbiased product reviews (here's how we assess tax products). Think about your taxes before the end of the year so you don't miss the opportunity to save come April. Here are three tax mistakes you don't want to make by the end of the year:1. As a result, you could end up owing additional tax plus interest and penalties. Not missing out on these tax moves can help with a smoother tax experience and may also save you money.

Persons: —, It's, Roth, you'll Organizations: Service, NEC, IRS

☆ Homeowners are tapping into home equity to get cash
▼ + stars: | 2023-08-16 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

That means homeowners are now collectively sitting on nearly $30 trillion in home equity, according to the St. Louis Federal Reserve. Other reasons that borrowers gave for taking out a HELOC or home equity loan included debt consolidation and emergency cash management. Hidden source of valueA homeowner’s equity in their home can be a tremendous source of wealth. A homeowner’s equity will fluctuate over time as they make payments on their mortgage and real estate market dynamics impact the current value of the home. Mortgage balances stay high because of home equity loansNationally, mortgage balances remain near record highs as some people turn to home equity loans, rather than HELOCs, according to a quarterly report from TransUnion.

Persons: ”, Marina Walsh, ” Walsh, HELOC originations, Joe Mellman, Freddie Mac, Mellman Organizations: DC CNN, Louis Federal Reserve, Equity Lines of, Mortgage, Association, TransUnion, “, refinances Locations: Washington, originations, U.S

☆ Massive home-price appreciation might be the secret to keeping consumers afloat as savings dry up
▼ + stars: | 2023-08-10 | by ( Phil Rosen | ) www.businessinsider.com time to read: +4 min

Homeowners' equity is the highest it's been in 25 years, which could provide a cushion as consumer savings dwindle. That trend could be set to continue as the massive accumulation of home equity provides a lifeline that consumers can tap into if things get tough. Bankrate data shows that home equity lines of credit, or HELOCs, are currently carrying an average rate close to 7%. Home equity revolving credit balances climbed for the fourth straight quarter leading up to March 2023, which presents another factor that could help sustain consumer spending. Now, real estate accounts for about 25% of total household assets, and despite deteriorating savings, still-rising equity presents a potential path forward for consumers to keep spending, Quinlan and Seery said.

Persons: Tim Quinlan, Shannon Seery, that's, Quinlan, Seery Organizations: Soaring, Service, Homeowners, Federal Reserve Board, Wells Locations: Wells, Wall, Silicon, Wells Fargo

Fox can take a tax deduction from the settlement, Lever News reports. U.S. tax law allows companies to write off at least some portion of settlement fees as part of the cost of doing business. (There are some exceptions, including for cases involving accusations of sexual harassment or abuse with nondisclosure agreements; Fox News has paid out settlements involving those in the past.) It is unclear how much Fox will save, though a spokesman confirmed that tax deductibility is at play. Lever News estimated that the company could reap as much as $213 million in tax savings.

☆ You can still score a 2022 tax break with pretax IRA contributions — here's how to qualify
▼ + stars: | 2023-03-02 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

You can make your 2022 IRA contribution through the April tax deadline in 2023, as long as you designate the deposit for tax year 2022. However, it gets more complicated if either partner has retirement plan coverage at work and participates in the plan. With a workplace plan, some or all of your contributions may not be deductible, depending on earnings. For 2022, single investors with a workplace retirement plan may claim a tax break for their entire IRA contribution if their modified adjusted gross income is $68,000 or less. How to know if a pretax IRA contribution makes sense

If you've already maxed out your 401(k) or other workplace retirement account, consider contributing to a Roth or traditional IRA as well. Pros Check mark icon A check mark. Low annual fee for investment accounts; crypto trust investments available Check mark icon A check mark. Tax-loss harvesting Check mark icon A check mark. Mobile app and investing and retirement tools Check mark icon A check mark.

However, Congress in its last session in December didn’t reach an agreement, and finance chiefs say they hope the topic will be revisited. “That’s a 20 percentage point increase in tax for Yelp, so obviously very meaningful for us,” Mr. Schwarzbach said. The higher costs due to the law change will factor into investment decisions going forward, Mr. Schwarzbach said. The tax change has an impact on the company’s net income, Mr. Schwarzbach said. The San Francisco-based company reported R&D expenses of $75.8 million for the quarter ended Sept. 30, compared with $69.4 million a year earlier.

☆ U.S. CFOs Ask Congress to Repeal Change to R&D Tax Rules
▼ + stars: | 2022-11-07 | by ( Jennifer Williams-Alvarez | In A Letter Finance Chiefs On The Change To R D Deductibility Tax Rules. | ) www.wsj.com time to read: +8 min

For decades, businesses were allowed to deduct certain R&D expenses straight away to reduce their taxable income. Tax deductions are subtractions from taxable income while tax credits get subtracted from the amount of tax owed. Over the course of this year, companies have been making estimated tax payments that incorporate the R&D change, tax attorneys said. On the agenda: Agreeing on funding the government to avoid a shutdown, aid for Ukraine, alongside potential changes to the treatment of R&D expenses. When it comes to a potential repeal or deferral related to R&D deductibility, timing is crucial, said Shelby Ford, a tax partner at Crowe LLP, a public accounting, consulting and technology firm.

☆ Colombia gov't agrees to ease tax changes to oil, mining
▼ + stars: | 2022-09-27 | by ( ) www.reuters.com time to read: +2 min

Register now for FREE unlimited access to Reuters.com RegisterColombia's President Gustavo Petro addresses the media after a meeting, in Bogota, Colombia July 22, 2022. The threshold for the export tax on oil will now be $71 per barrel, compared to a previous $48 per barrel. The reform may not raise 25 trillion pesos in additional income next year, Ocampo said, though he did not give more details. Meanwhile a proposal to raise taxes on gasoline will be scrapped, and more changes to the bill are expected next week. Thousands marched earlier on Monday to urge changes to the reform, which would also raise taxes on those earning more than $2,259 per month, about 10 times the minimum wage, and eliminate exemptions.

☆ Top psychedelics VCs share the key challenges that are keeping them on the sidelines of the first legal magic-mushroom market in the US
▼ + stars: | 2022-05-23 | by ( Yeji Jesse Lee | ) www.businessinsider.com time to read: +5 min

While some companies are laying the groundwork to enter the market, leaders at four venture-capital firms focused on psychedelics told Insider they're skeptical about investing in the state. Palo SantoOne of Palo Santo's portfolio companies, Fluence, is preparing for the Oregon market. Two big reasons that psychedelics clinics could struggle to make money in OregonSchlidt laid out two reasons he thinks that psychedelics clinics in Oregon will struggle to be profitable. Plus, psilocybin clinics would face higher taxes. Burkitbayeva said that the companies she's seeing enter the Oregon market don't seem to have those attributes.

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