We've scoured the internet so that you don't have to. Consider this our monthly roundup of relevant news articles to support your pursuit of prosperity.
7 Tax Rules to Know if You Give or Receive Cash
Cash is king, but you may have to tell the IRS if you're giving or receiving it.
Whether you work in the gig economy or are giving a cash gift to a relative, you need to know if and how to report that money to the IRS. There are different rules and reporting requirements depending on the size of the gift, whether the gift was made in cash and whether you are the giver or receiver.
How Your Retirement Savings and Income Are Taxed
From 401(k)s (fully taxed!) to Social Security (partially taxed) to Roth IRAs (tax free!) – it’s good to know what kind of tax bills you’ll face in the future. Here’s the tax breakdown on 12 different types of assets.
Wondering Why Your RMD Just Got Smaller?
If you’re wondering why this year’s required minimum distribution (RMDs) amount just got smaller, there’s a reason for that. In 2020, the IRS updated the table used to calculate required minimum distributions (RMDs) for those age 72 or older with assets in certain qualified retirement plans. The new Uniform Lifetime Table expands the number of distribution periods for retirees reflecting IRS assumptions of longer life expectancies.
The increase in distribution periods effectively lowers your annual RMD amount and, accordingly, the amount of taxes you may owe on these distributions. This expansion in the number of distribution periods is designed to make sure that RMDs won’t prematurely drain the value of older Americans’ retirement savings.
You Can’t Contribute to a Health Savings Account Once You’re on Medicare. A Bipartisan Bill in Congress Would Change That.
There’s a renewed push in Congress to let Medicare beneficiaries set aside pretax money for medical expenses.
Called the Health Savings for Seniors Act and introduced this month in the House, the bipartisan bill revives past legislative efforts to let individuals on Medicare contribute to health savings accounts, or HSAs, which they currently cannot do.