COBRA continuation allows employees covered by workplace health insurance plans to keep their health plan while they’re in between jobs, taking time off, or would temporarily prefer their old insurance over current options.
There will likely be at least one point during your career when you'll want to roll an old 401k or IRA into another retirement account. To accomplish this while preserving the tax advantages of your retirement accounts, you have three options: trustee-to-trustee transfers, direct rollovers, and indirect rollovers.
The most common mistake I see with backdoor Roth conversions is unintentionally running afoul of the IRA aggregation rule, but to me, the true biggest backdoor Roth IRA conversion mistake is improper tax reporting.
A client recently asked me if it would ever make sense to exercise underwater stock options and if it could lower their AMT. Many companies have experienced downward revisions to their 409a valuations over the last year-and-a-half due to the shakeups in the tech sector, so I'm hoping this will help other people who have underwater stock options and are wondering the same thing.
Health Savings Accounts, or HSAs, are tax-advantaged accounts designed to encourage saving and preparing for future medical expenses. They encourage people who are paying lower health insurance premiums by being covered by an HDHP to direct some of the money they otherwise would have used on a more expensive plan's premiums to future expenses.
Nondeductible IRA contributions are similar to a Roth IRA in the sense that contributions are made after tax in both cases. The huge and extremely important difference is that the earnings on nondeductible contributions to a Traditional IRA are fully taxable at distribution, while the earnings on Roth IRA contributions are tax-free.
