After funneling money into pretax retirement accounts, you will eventually face mandatory withdrawals in retirement known as required minimum distributions, or RMDs. Since RMDs can trigger higher taxes, the withdrawals can be a nuisance for some retirees who do not need the money. However, experts suggest that this yearly activity could offer a chance to
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The upcoming presidential election has brought the issue of taxes to the forefront. The tax cuts enacted by former President Donald Trump through the Tax Cuts and Jobs Act (TCJA) are set to expire after 2025, leaving more than 60% of taxpayers vulnerable to potential tax increases in 2026. The Tax Foundation estimates that without
For the past 15 years, the federal minimum wage has remained stagnant at $7.25 per hour, marking a significant milestone in the struggle of working families to make ends meet. While various states have taken the initiative to enact higher minimum hourly pay rates, there are still 20 states where wages remain no higher than
Vice President Kamala Harris recently announced an economic plan that includes an expanded child tax credit of up to $6,000 for families with newborn children. This proposal aims to build on the child tax credit enacted through the American Rescue Plan in 2021, which provided tax relief of up to $3,600 per child. Harris’ plan
As retirement approaches, investors are often warned about a looming threat known as the “sequence of returns risk.” This risk, also called “sequence risk,” stems from poor investment returns paired with withdrawals, especially in the early years of retirement. The detrimental impact of this combination can lead to a significant reduction in your retirement nest
In today’s volatile economic landscape, it is crucial for individuals to have a sufficient amount of emergency savings set aside. Despite recent second-quarter economic growth, many Americans are under the false impression that the United States is currently in a recession. A June survey conducted by Affirm revealed that nearly 60% of adults believe this
Former President Donald Trump has recently proposed eliminating taxes on Social Security benefits, arguing that seniors should not have to pay taxes on this income. While this idea may initially seem appealing to beneficiaries, it fails to address the crucial issue of how to compensate for the revenue loss that would result from such a
Former President Donald Trump and Vice President Kamala Harris have both expressed their desire to eliminate taxes on tips, particularly for service and hospitality workers. While this proposal has garnered some bipartisan support in Congress, it has also raised concerns among policy experts. One of the major criticisms of this idea is the question of