Every employed person in America has to pay the Federal Insurance Contribution Act tax commonly known as FICA tax. FICA withholding is done on the employees’ wages or salary where a deduction of a certain percent is made per annum usually 15.3 %. This deduction on the employee’s salary must be marched by the employers’ … Read more
FICA is the acronym for Federal Insurance Contribution Act. This tax is imposed by the United States Federal government to employees as well as employers in order to fund Social Security and Medicare. However, most people refer to it as FICA. It is the tax collection mechanism for social security. FICA tax is used to … Read more
There are many people who ponder on the question “what is an IRA?”. IRA is an umbrella term that is used for all retirement plans that provide tax advantage for retirement savings in the United States. IRA itself stands for individual retirement account or it could even mean individual retirement arrangement. These tax saving plans … Read more
Let me ask you this; is a Registered Retirement Savings Plan (RRSP) really the best savings plan for you? With RRSP, contributions are tax-deductible, and growth with gains is also tax-free. You will only be subject to tax when you take money out and the incurred taxes will be calculated based on your income tax … Read more
There are some who are familiar with how Net Unrealized Appreciation (NUA) works as per relationship with the company stock owned by their 401(k) and some, sadly, are not familiar with it. As a brief explanation, you can take out funds from your 401(k) and rollover everything except the company stock (your company) to an … Read more
The 401a plan is a money purchase retirement plan that is set up by the employer. This plan allows for both employers and employees to contribute towards the account. The contributions to this plan can be made either on a voluntary or mandatory basis. The mode of contribution (voluntary or mandatory) is decided by the … Read more
Saving for retirement is one of the primary concerns for many people and especially those people who are nearing retirement. There are various retirement plans available today such as, the 401k retirement plan and the 403b retirement plans. Most of these plans offer excellent tax benefits and other added benefits as well. The 403b retirement … Read more
403b retirement plans are essentially savings plans that are available for public education organizations, and some other types of organizations in the United States. The contributions to the 403b retirement plans are not taxable; however, the withdrawals from the plan will be taxed as income tax. Contributing towards retirement plans such as the 403b plans … Read more
Saving money for retirement is a very important aspect. Generally, this is the difference between a person enjoying happy retirement and a retired life that is full of hardships. Retirement investing has been around for many years now. Although pension funds and pension plans have been around for a much longer duration, the concept of … Read more
The term LLC refers to limited liability companies which are operated by one or more owners who are usually referred to as ‘members’. In case the LLC has only one owner, it is taxed according to the rules of sole proprietorship. LLC taxes are not taxed as a separate business entity like a corporation; rather, … Read more
Financial advisors and financial planning consultants are pretty much the same. Its just a case of one company calling that certain job position as a financial advisor, while the other company calls it a financial planning consultant, when the job description for both are the same. Another thing that needs to be stressed is that … Read more
Financial coaches are different from financial planning consultants. A financial coach provides training to individuals to develop on their own the skills required to manage their money. These coaches give you the right analytical and decision-making tools to be successful in the money management field. We don’t have to always rely on financial advisers when … Read more
Many Americans retire with little to nothing in their savings accounts, nor do they have reliable retirement plans. As an investment advice it is best that while still young one should consider investing for their post-employment days. Take this one fact for example: when put into a mutual fund, the amount by which your money … Read more
Annuity investments, although they are quite common in the United States, most people still find themselves asking the question ‘what is an annuity investment?’ An annuity investment is a contribution that an individual makes towards a life insurance policy by a single premium. The returns of the insurance plan will be enjoyed by the insured … Read more
