Category Archives: 401K

401K While on Early Social Security

Today TaxMama hears from Larry in Texas. He has an interesting question. “I’m 63 and receiving social security retirement benefits. I work part-time. Will contributions to my company 401(k) reduce my taxable income? Specifically, will my contributions reduce my total income, enabling me to exceed the earnings limits for being under full retirement age?”

Depression Mentality

Today TaxMama hears from Helen in Texas with this concern. “Can I take my 401(k) investment money out of bank investments and put into a credit union without paying taxes? If so how do I go about doing this? Besides, aren’t credit unions safer? “ Dear Helen, Your first question is easy. If your 401(k) […]

Retirement Credit

Today TaxMama hears from Cindy in Kansas with an enterprising idea. “I understand that enrolling in an IRA gives an additional tax credit; I have not done so as of yet. Would rolling over a 401(k) account into a Roth IRA be eligible?”

Saver’s Credit for Retirement Savings Contributions

If you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement, you may be able to take a tax credit. The Savers Credit formally known as the Retirement Savings Contributions Credit applies to individuals with a filing status and income of: Single with income up to $26,000 Head of Household […]

Plan Now to Get Full Benefit of Saver’s Credit

Tax Break Helps Low- and Moderate-Income Workers Save for Retirement IR-2007-187, Nov. 9, 2007 – Courtesy of the Internal Revenue Service WASHINGTON — Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2007 and the years ahead, according to the Internal Revenue Service. The saver’s […]

Roth IRA and 401(k)

Today TaxMama hears from Ken in Los Angeles, who tells us “I’ve maxed out my regular 401K contribution ($15,500 I think) for the year. Are there any negative tax consequences if I start contributing to a ROTH IRA?”

Active 401(k)

Today we hear from Harvey in New Jersey who tells us, “I am 67 & semi-retired (working 20 hrs/wk.) I have a 401(k) from my current job where I have been for 4 years. I just went part-time & would like to draw from my 401(k) for supplemental income. I know I can borrow from […]

Sick and Divorced

Today we hear from Karen in PA who tells us, “ I just got divorced. I am entitled to $40,000 of hubby’s 401(k). I’m permanently disabled and haven’t worked since 2003. I need this money for necessities, but don’t want to pay early withdrawal or tax penalties. Because I’m disabled and receive a pittance from […]

Saver’s Credit For Retirement Savings Contributions

Courtesy of IRS Even though you may be on vacation, the IRS is always at work thinking about taxes! August and the “Dog Days of Summer” are upon us. Taxes are probably the furthest thing from your mind. But now, months before the end of the year and the start of tax season, is a […]

Double Retirement Contributions

Today TaxMama hears from Alejandro, in the Tax Parlor, who tells us. “I have a regular 9 to 5 job and also have my own business. I want to know if I can both contribute to a regular 401(k)plan and also invest in a 401(k) plan? I would therefore be exceeding the $44K per year […]