Barry Bulakites Blogs

Individual retirement accounts, or IRAs, are essentially savings plans. People set up IRAs to defer paying taxes on earnings as their savings continue to grow until they decide to withdraw the money. Remember that there are different types of IRAs, each with its own tax eligibility and tax implication as established by the IRS. Image source: investopedia.com Having an IRA has many advantages. A traditional one, for example, will allow you to claim a tax deduction when you contribute to it. It helps reduce your taxable income, as you don’t pay income tax for the money you’ve put on there. Also, as your savings grow, they continue to be tax-deferred. In short, there’s no need to include any of your dividends, capital gains, and interests when computing your annual tax return. The first step in setting up your IRA is to decide on which IRA type best suits your needs. You should study closely if a traditional IRA or, say, a Roth, is what you need. You then will h...

When it comes to IRA assets, investors must make sure that they are investing their money profitably and legally. To prevent prohibited transactions, especially with self-directed IRAs, those who are saving up for their retirement years must be on the lookout for fraudulent offers. Those who are aiming for a self-directed IRA should act accordingly:  Image source: Military.com 1. Avoid investing in prohibited investments. An IRA cannot be invested in collectibles (art, antiques, gems, etc.), precious metals, and life insurance. When a broker approaches a potential investor to direct their IRA through these means, it is a fraudulent deal.  2. Ask questions and check the broker's credentials. Setting up a self-directed IRA can be tricky for those who will be doing it for the first time. Before investing in assets, there should be a lot of questions. Factors such as valuation, liquidation, and distribution might determine if it's worthwhile to invest. ...

Individual retirement accounts, or IRAs, came into existence decades ago because of the steady decline of defined benefit pension plans. People wanted to control how they saved money for retirement and IRAs were just the thing to do so.But not only did IRAs give control to individuals, they also provided some very attractive advantages. Image source: richtertriallaw.com People went for traditional and Roth IRAs more than any other IRAs because of the benefits both types offered. A perfect example of which was tax-free growth. These IRAs earn money and grow, and no taxes are levied on the dividends and capital gains. It’s also a huge convenience that the contribution deadlines are the same. People with traditional and Roth IRAs can contribute to the IRA for the entire calendar year, up until April 15 of the succeeding year. Contributions depend on several factors, along with the personal preference of the individual. People should note that after-tax money comp...