Some tax filers are not able to directly fund a Roth individual retirement account because their income is too high. Individuals with too much income to directly fund a Roth IRA may contribute to a nondeductible traditional IRA and then roll those funds over to a Roth account.
Contributions to a traditional IRA are not always fully tax-deductible, so many accounts consist of both pre-tax and after-tax amounts. When a traditional IRA is initially opened, it is not designated as deductible or nondeductible.…
If you’ve recently been awarded a legal judgment or settlement through a personal injury, medical malpractice, or other tort lawsuit, you may be wondering what to do with these funds. You may need a sizable portion of your judgment or settlement monies to pay medical bills or other costs stemming from your accident, or to help pay off debt incurred while you were out of work. However, you may still have money left over – particularly if you were awarded punitive damages.…
Did you recently come into a large sum of money? Perhaps from an inheritance, a lawsuit settlement, or even from lottery winnings? You’re probably thrilled about your windfall, and you should be. However, it’s important that you take steps to protect your new-found wealth. There are plenty of stories of lottery winners or heirs who don’t know how to handle their new wealth and blow it on frivolous spending. If you truly want this money to be life changing, you need to make sure it lasts for the rest of your life.…
