The Motley Fool

MARCH 9, 2024

Saving for retirement is already a challenging task for many workers, and having to give a piece of their nest egg back to the government only puts a bigger financial burden on seniors. Certain strategies can help you keep more of your money, like keeping savings in Roth accounts that allow for tax-free retirement withdrawals.

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The Motley Fool

AUGUST 20, 2023

There's no denying it -- paying taxes just plain stinks! It's understandable that people seek to minimize their annual tax bills. Before contributing to a traditional IRA (individual retirement account) simply to reduce your current taxable income, however, you might want to take a step back and consider a Roth IRA instead.

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The Motley Fool

JUNE 19, 2023

A Roth IRA is perhaps the most powerful retirement account you can get your money into. The combination of tax-free growth throughout your life, the ability to accept rollovers from other retirement plans, and tax-free withdrawals in retirement make it a wonderful part of your arsenal. Here's why.

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The Motley Fool

FEBRUARY 14, 2024

In coming years, Social Security expects its primary funding source -- payroll tax revenue -- to shrink as baby boomers start to retire en masse. The program can tap its trust funds for a while to keep up with scheduled benefits in the absence of adequate payroll tax revenue. Is your IRA or 401(k) tax break at risk?

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The Motley Fool

APRIL 26, 2024

Some people think saving for retirement and retirement planning are the same thing -- but they're not. Saving for retirement is part of retirement planning. Choosing the right investments and knowing how much you can safely withdraw per year in retirement are both helpful. Who owns your retirement savings?

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The Motley Fool

JUNE 16, 2023

Retiring abroad is a dream for lots of people, and rightly so. The world is a vast, beautiful place, so why not spend your well-earned retirement wherever you see fit? tax laws and the tax laws of your new country of residence. tax laws and the tax laws of your new country of residence. If the U.S.

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The Motley Fool

FEBRUARY 26, 2024

The closer you get to retirement -- and once you're there -- what gets taxed from the retirement income you'll be depending on becomes ever more important, and where you live has a lot to do with it. So does what's meant by "retirement income" itself. The rules vary widely. Then it gets even more complicated.

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The Motley Fool

APRIL 5, 2024

A Roth IRA's biggest appeal is the tax-free withdrawals it promises in retirement. It could save you a fortune compared to deferring taxes if you expect your income to remain roughly the same or rise after leaving the workforce. But some don't realize that tax-free withdrawals aren't a guarantee.

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The Motley Fool

APRIL 1, 2024

Image source: The Motley Fool/Upsplash It's widely recommended to invest with retirement accounts because of their tax benefits. With traditional 401(k)s and individual retirement accounts (IRAs) , your contributions are tax-deductible in the year you make them. You could save hundreds of thousands in taxes with them.

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The Motley Fool

APRIL 20, 2024

The April 15 tax-filing deadline has already come and gone, so at this point, hopefully, you have sent in your 2023 return and are awaiting your refund. As of April 5, the average tax refund issued by the IRS this filing season was $3,011. A tax refund is not a gift from the IRS. Now, let's get one thing quickly out of the way.

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The Motley Fool

MARCH 24, 2024

Because CD rates are so attractive right now, you may be considering opening one for the purpose of saving for retirement. So when you're investing for a far-off goal, like retirement, a stock portfolio that you build in an IRA could be a better bet. Another option is to save for retirement in a Roth IRA or 401(k).

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The Motley Fool

APRIL 19, 2024

How can you be ready to cover healthcare costs in retirement? An HSA allows you to make tax-deductible contributions up to the annual limits. You don't have to use the money right away -- you can invest it each year and allow it to grow tax-free. The triple tax benefits of an HSA are unlike any other account.

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The Motley Fool

DECEMBER 20, 2023

Taxes can frankly be a real pain at any time in life. But you may find that they're even more of a problem once you enter retirement. Many seniors experience a drop in income once they enter retirement. That could make any tax bill you face quite stressful. Retirement can be a stressful period, financially speaking.

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The Motley Fool

APRIL 19, 2024

With that in mind, these four ways to grow $100,000 into $1 million for retirement savings are designed to inspire you to get that foundation in place. In other words, if you can scrounge up that first $100,000 by the time you turn 40, then you've got a decent shot of retiring a millionaire by 65, simply based on what you've already saved.

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The Motley Fool

APRIL 10, 2024

Finding cash to save for retirement can be a challenge, but it's only half the battle. These accounts offer unique tax advantages you won't find with most other retirement accounts. No taxes on withdrawals The biggest benefit of Roth IRAs is the tax-free withdrawals they offer you in retirement.

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The Motley Fool

MAY 18, 2024

By virtue of its structure and thanks to new rules in place in 2024, a Roth 401(k) can be a tremendous way to both build a substantial retirement balance and to manage your money once you reach that goal. Indeed, a Roth 401(k) has so much going for it that it is my favorite account for building a millionaire retirement.

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The Motley Fool

MARCH 17, 2024

Image source: Getty Images Ah, New York, the Empire State: home to the Big Apple, cascading waterfalls, and, not so proudly, some of the highest taxes in the nation. Whether you're a city slicker dodging taxis or a country dweller enjoying the serene landscapes, one thing unites all New Yorkers: the quest to lower that pesky tax bill.

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The Motley Fool

MAY 6, 2024

Retiring comfortably doesn't happen by accident. Here are three ways to get the job done in time for retirement. But your retirement nest egg is not the money to bet on the hot stock tip you heard at the bar. Take action, and you'll be surprised by how much money you can retire with.

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The Motley Fool

APRIL 20, 2024

As you work throughout your career, a good portion of the taxes you pay go toward Social Security. For decades, Social Security has been one of America's most important social programs, especially when it comes to retirement. Social Security permits spousal benefits to support non-working or low-earning spouses in retirement as well.

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The Motley Fool

APRIL 30, 2024

Fidelity estimates that the average 65-year-old person retiring in 2023 is looking at spending $157,500 on healthcare costs throughout retirement as a Medicare enrollee. But either way, you should expect healthcare to be a major line item in your retirement budget. This year, it's $174.70.

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The Motley Fool

FEBRUARY 4, 2024

My friend Beth calls retirement "preferment" She will do the things that she prefers from now on. -- @keciabee on X That's a fun way of thinking about retirement -- a time when you're more able to do things you want to do, as you're no longer required to dress a certain way, adhere to a certain schedule, or work hard for much of most days.

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The Motley Fool

APRIL 21, 2024

Recent data from Northwestern Mutual finds that the typical baby boomer has just $120,300 in retirement savings. These investments, however, could set you up with passive retirement income so you don't have to lift a finger if you don't want to. REITs Owning a rental property is a great way to generate retirement income.

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The Motley Fool

JUNE 21, 2023

One of your biggest expenses in retirement could be your tax bill, but using these three accounts will help ensure that you can keep more of your savings for yourself. When you contribute to an HSA, Roth IRA, or Roth 401(k), you're setting yourself up to take tax-free withdrawals in the future.

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The Motley Fool

JANUARY 30, 2024

Many people work really hard to amass savings for retirement. Still, the whole purpose of saving in an IRA or 401(k) is to be able to cover your living expenses in retirement without worry -- and perhaps, ideally, have money left over to pay for leisure, travel, and other fun things. After all, you want that money to last.

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The Motley Fool

FEBRUARY 28, 2024

This account offers the potential for a tax-free retirement. You'll pay taxes on any amount contributed to a Roth 401(k), but you won't pay any capital gains tax or income tax on withdrawals in retirement. Here are three reasons to avoid a Roth 401(k) for your retirement savings.

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The Motley Fool

JANUARY 1, 2024

It's also a great time to review your retirement strategy or develop a savings plan if you haven't already started. One of the first things you'll need to do is decide which retirement account(s) you want to use. This is free money your employer gives you for contributing to your retirement account. Image source: Getty Images.

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The Motley Fool

MAY 19, 2024

I've been investing my retirement funds into Roth accounts for over a decade. While traditional retirement accounts are a great choice for many, there's one reason why I love Roth accounts. Hint: It's not just the tax savings. That means you invest money into these accounts that you've already paid taxes on.

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The Motley Fool

MAY 8, 2024

Retirement planning is a unique journey for everyone. However, I don't think it's a stretch to say that people want to make more money and pay fewer taxes on that wealth. I mean, who likes paying taxes? Don't worry -- I'm not advocating tax evasion. Instead, I'm hyping up my favorite retirement account: the Roth IRA.

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The Motley Fool

DECEMBER 3, 2023

Even in retirement, taxes may be unavoidable. Not only are your retirement account withdrawals sometimes subject to income taxes, but you could owe taxes on your Social Security benefits, too. State taxes Depending on where you live, your benefits could be subject to state taxes.

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The Motley Fool

JULY 6, 2023

Paying taxes isn't anyone's idea of fun, and it's a big reason why tax-optimized investing tends to be front-of-mind for many aspiring retirees. Basically, most retirement plans like 401(k)s and 403(b)s involve you putting away income in specialized accounts and that income is not taxed at the time of the contribution.

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The Motley Fool

MARCH 24, 2024

And if you're going to pay up for a whole life policy, you might assume that it's better to focus on that and forgo contributions to a retirement plan like an IRA or 401(k). Why whole life insurance shouldn't be your sole retirement savings solution Term life insurance, as the name implies, covers you for a certain term. each year!

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The Motley Fool

MARCH 31, 2024

Image source: Getty Images If you make a limited income in the United States, the idea that you could ever retire may seem like nothing more than a fantasy. Tax breaks and matching contributions can make saving even easier The good news is, low-income workers may not even have to actually find $188.28 in retirement savings by age 65.

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The Motley Fool

APRIL 27, 2024

A million dollars is still a tremendous financial milestone, and that much money could go a long way toward securing a comfortable retirement. Whether you have your first $100,000 or not, there are multiple ways to get to $1 million in retirement savings. The most common plans are the 401(k) and individual retirement account (IRA).

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The Motley Fool

APRIL 24, 2024

The average adult 65 and older has just $232,710 saved for retirement -- far short of the $1 million or more many workers estimate they'll need for a comfortable future. The idea of running out of money in your final years is scary, but you can reduce this risk by taking key steps now to build your retirement account balances.

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The Motley Fool

MARCH 30, 2024

The government considers cash you withdraw from your 401(k) to be a distribution, so you'll probably pay taxes on it. You can get around the taxes and penalties by depositing the withdrawal into a new IRA or 401(k) in your name within 60 days. If you can do it, you'll get the amount the plan administrator withheld from you at tax time.

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The Motley Fool

DECEMBER 22, 2023

All eyes are on the fast-approaching holidays right now, but we can't forget that tax season is just around the corner. You have until April to file your return, but you're running out of time to make certain tax-saving retirement moves. This is what you want to use if you hope to reduce your 2023 tax bill.

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The Motley Fool

NOVEMBER 28, 2023

Moving abroad is a temptation for myriad Americans as they move toward and into retirement, and for many it's become a reality. And since Social Security monthly benefits are such a significant source of income, a natural first question to ask about such a move is whether retiring abroad will impact those payments. The answer?

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