With a traditional individual retirement account, the distributions would be subject to taxation, and the distributions would be mandatory. The beneficiary of a Roth IRA (if it is someone other than your spouse) would also be required to take distributions, but they would not be taxed. … [Read more...] about Are IRA distributions to the beneficiary taxable?
Though there are some hybrids, generally speaking, there are two major types of individual retirement accounts: the traditional variety, and Roth IRAs. With a traditional individual retirement account, contributions are made before you pay taxes on the income. Taxation works in the reverse manner with a Roth IRA. Your deposits into a Roth individual retirement account would be made after taxes have been paid. With both types of accounts, you can take penalty-free withdrawals when you … [Read more...] about Are there different types of individual retirement accounts?
At the time of this writing, it is 65, but there have been discussions about raising the age to save money. This is something to keep an eye on when you are looking ahead toward your retirement years. … [Read more...] about What’s the Medicare eligibility age?
The exact amount of your Social Security benefit will be based on your 35 highest earning years. You can find out your projected payouts at different ages if you register your account on the Social Security Administration website. … [Read more...] about How much will I get from Social Security?
The answer to this question has a few different facets. First, there is the age of full Social Security eligibility, and the parameters are a bit convoluted. If you were born between 1943 and 1954, you will be eligible for a full benefit when you are 66 years old. That’s simple enough, but it gets complicated from there. The eligibility age then goes up by two months each year, so someone that was born in 1955 would become eligible two months after their 66th birthday. This two-month … [Read more...] about When do you qualify for Social Security?
You obtain eligibility for Social Security through the accumulation of retirement credits. When you pay FICA or self-employment taxes, you earn these credits. Even if you work part-time on a consistent basis, you will receive four credits each year, which is the maximum annual accrual. Once you have 40 credits to your name, you will qualify for Social Security. If you have not earned enough retirement credits, but you are married and your spouse has done so, you can qualify based on the … [Read more...] about Does everyone qualify for Social Security when they reach a certain age?