tax deferred

Prior to 2010, individuals were permitted to convert a traditional IRA to a Roth IRA under the tax law for Roth IRA conversion.  There were only two stipulations that governs the conversion: (1) you have to pay taxes on the converted money and (2) you must be within the income limit which determined your eligibility [...]

If you pay estimated taxes, you may find yourself facing a tax debt when you come to fill in your tax return. As estimated tax payments are predominantly based on your income for the previous tax year, you can easily be crippled with a tax bill that is more than you anticipated if your income [...]

Understanding the many tax deductions can be nothing short of a minefield, and many taxpayers are unaware of the many deductions that can be used to legally reduce your tax bill. This article highlights just a few of the tax deductions that you can claim if your circumstances lend themselves.

Standard Deductions
A standard deduction varies depending [...]

Up until about 10 years ago, there was one type of IRA, the traditional IRA which was deducted from your taxable income, grows tax deferred, and upon withdrawal, is taxed at whatever rate you find yourself. Its cousin, the Roth IRA is the mirror image, the money you put in is after tax money, but [...]

We hear a lot about diversifying across asset classes — owning stocks, bonds, real estate, etc. We also hear a lot about diversifying within asset classes — owning mutual funds of hundreds of stocks rather than owning a few individual stocks. But there’s another, lesser-known form of diversification from which you could benefit: Tax diversification.

Photo [...]

In my TurboTax Online Review, I mentioned that I owe some federal income tax and is thinking about opening a SEP IRA, or a Simplified Employee Pension Plan. Aside from reducing my tax liabilities, I want to maintain my safe harbor from having to pay quarterly income taxes in 2009.
Since I am already doing my [...]

In this Ask The Expert With Larry Swedroe article, Erin from Working for Financial Freedom wants to learn more about contribution limit for Roth 401k.  She also wants to know if and how she should split her investment between traditional 401k and Roth 401(k).  Here’s the question from Erin:
Is there a limit to how much [...]

The financial terms below are commonly used throughout this web site.  Clicking on a term will send you to the term page with a brief definition and a list of articles related to the term.

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A
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401(k)
529 Plan

Adjustable Rate Mortgage (ARM)
Alternative Income
Annual Percentage Rate (APR)
Annual Percentage Yield (APY)
Annuity
Arbitrage
Asset Allocation
Asset Location

Bond
Bond Fund
Budgeting

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Capital Gains
Certificate of Deposit (CD)
Commodities
Contribution Limit
Correlation
Credit Report
Credit [...]

This is the 10th issue of the Ask The Expert column by Larry Swedroe. You can see Larry’s full biography and important disclaimer below. If you are interested in having your question answered by Larry, please send me an email via the contact page.
Now, let’s get to the questions and answers (please note that the [...]

Investing in the stock market is a risky business if you don’t know what you’re doing.  Even if you do, it’s possible to lose a lot of money — e.g., Bear Stearns, Fannie Mae, Freddie Mac, etc.  Personally, I have moved away from individual stock picking for many years now, and embrace investing mechanics that [...]