Here’s why a Roth IRA conversion may pay off in a down market

Morsa Images | E + | Getty Images Soaring inflation, interest rate hikes and the war in Ukraine have sparked ongoing stock market volatility. But there may be a bright spot: the chance to save money on a Roth conversion. The strategy allows higher earners to sidestep the earnings limits for Roth individual retirement account … Read more

Here’s everything you need to know about taxes, 401 (k) plans and IRAs

Taxes, 401 (k) plans and individual retirement accounts, or IRAs, are complicated. But it’s important that you master the fundamentals of both your personal taxes and your retirement-savings options in order to be able to make informed decisions about your future. Americans do not spend enough time doing their taxes – on average, just 12 … Read more

FTC sues TurboTax owner Intuit for advertising tax software as free

Kimberly White | Getty Images Entertainment | Getty Images The Federal Trade Commission sued Intuit in federal court on Monday, claiming it has deceived customers for years by marketing its TurboTax software as free and then charging most users when they file their income taxes. Around 56 million people filed their taxes with TurboTax in … Read more

Biden’s budget proposes tax hike on married filers over $ 450,000

President Joe Biden introduces his budget request for fiscal year 2023 on March 28, 2022 in Washington. Anna Moneymaker | Getty Images President Joe Biden released his 2023 federal budget request on Monday, calling to hike the top marginal income tax rate to 39.6% from 37%, a proposal floated by the administration last year. The … Read more

There’s a tricky ‘virtual currency’ question on your tax return

Marko Geber | DigitalVision | Getty Images The IRS has issued a warning about how to answer the cryptocurrency question on the front page of your tax return. You’ll need to respond to a yes-or-no question about virtual currency, regardless of whether you “engaged in a transaction” in 2021, according to the agency. And the … Read more

Vanguard created big tax bills for target-date fund investors, lawsuit claims

Pixelfit | E + | Getty Images Vanguard Group and its executives created big tax bills for some investors in its target-date funds, amounting to hundreds of millions of dollars in aggregate, according to a lawsuit filed Monday. The lawsuit, filed in a Pennsylvania federal court by three investors, claims the investment manager triggered an … Read more

Gold, silver ETF owners face 28% top tax rate on capital gains

Oliver Strewe | The Image Bank | Getty Images Investors who sell gold, silver and other precious-metal exchange-traded funds may find their profits taxed at a higher rate than other holdings like stocks and bonds. The IRS treats ETFs backed by physical precious metals as collectibles for tax purposes, according to accountants. Collectibles – like … Read more

IRS plans to hire 10,000 workers to tackle massive backlog

Signage outside the Internal Revenue Service (IRS) headquarters in Washington, DC Bloomberg | Bloomberg | Getty Images The IRS plans to hire 10,000 workers to tackle a massive backlog of more than 20 million unprocessed returns, including filings from previous years. They hope to fill 5,000 open positions in the coming months, with another 5,000 … Read more

Considering a Roth IRA conversion? Here’s how to reduce the tax bite

If you’re considering a Roth conversion, your timing and annual planning can significantly reduce the tax bite, financial experts say. The popular retirement savings strategy allows higher earners to skirt the income limits for Roth individual retirement account contributions. While the maneuver may kickstart tax-free growth, you’ll owe levies on pretax deposits. And boosting your … Read more

IRS unveils Taxpayer Experience Office for customer service

The Internal Revenue Service headquarters building in Washington, DC. Chip Somodevilla | Getty Images News | Getty Images The IRS on Friday unveiled a new Taxpayer Experience Office as part of a long-term plan to improve customer service issues. The office will focus on “all aspects of taxpayer transactions,” working closely with the Taxpayer Advocate … Read more