The Modern Investor
Written by Human Advisors, for Human Investors
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Potential Benefits of Health Savings Accounts (HSAs)
Health Savings Accounts offer significant potential tax advantages. Contributions are made with pre-tax dollars, grow tax-deferred, and withdrawals for qualified medical expenses are tax-free, making HSAs triple-tax advantaged. To qualify for an HSA, one must be covered under a high deductible health plan (HDHP) and meet other specific criteria. It’s important to weigh the higher out-of-pocket costs against the long-term benefits.
Want to Retire Richer? Five Ways SECURE Act 2.0 Could Help in 2024.
SECURE Act 2.0, passed in late 2022, was full of new provisions for retirement savers and investors. Now that a year has gone by, it may be a good time to remind ourselves of some of the most important changes going into effect this year.
Roth vs Traditional 401(k) in 2024: Navigating Retirement Planning and Tax Planning
Retirement planning options continue to evolve, and the Roth 401(k) has become an option for more and more people. Determining which is better - Roth or traditional 401(k) - will often come down to the assumptions made around current vs. future income levels, current vs. future income tax rates, and when (or if) retirement savings will be spent down. Sometimes the answer may seem obvious. For those with murkier forecasts, using both options can make sense, too.
After the 401(k), Where to Invest Next?
Some investors prefer to max out the 401(k), either with pre-tax contributions or after-tax Roth contributions. Others contribute just enough to take full advantage of an employer match. And for many others, the answer is somewhere in between. Regardless of how that question is answered, people often wonder where to go next. What makes the most sense after 401(k) contributions are finished for the year? Let’s look at a few options, specifically through the lens of tax treatment, availability, and flexibility.
Earn too much for a Roth IRA? Two considerations before you use the ‘backdoor’ Roth IRA.
The backdoor Roth IRA strategy can be an effective way for high-income individuals and families to save for retirement. Be careful to avoid common pitfalls that might create unexpected and unwanted taxes. Consider all your options and try to think holistically about retirement – few if any solutions are one-size-fits-all.
What Should I Do With My 401(k)?
Target-date funds have grown in popularity for retirement savers. And for good reason. But are they the right answer for everyone? See where it might make sense to consider a more tailored approach to allocating retirement plan assets.
Did I Just Pay Too Much Tax?
Not happy with your tax bill? Now that most individuals and families have filed 2022 taxes, it could be an ideal time to start tax planning for next year.
New Employer? Things to Consider Regarding the Old Retirement Plan.
You have a new employer. What should you do with the old 401(k) or retirement plan assets? Leave it where it is, bring to the new employer’s plan, or rollover into an IRA? Here are some of the key considerations around taxes, investment options, and fees, as well as a few other items to take into account.
