Knowledge
Latest in Knowledge
2025 RMD Rules Explained: Age 73, QCDs, and Tax Penalties
RMDs begin at age 73 for most; first due April 1 after that year or by Dec 31 of the…
Understanding U.S. Income Tax: Progressive Brackets, AMT, and Credits
For 2024, the IRS kept a progressive tax system with inflation-adjusted brackets (10%–37%). Compute base tax, add other taxes on…
Understanding Form 5329: Additional Taxes on Tax-Favored Accounts
The IRS confirmed Form 5329 stays in use for 2025 to report additional taxes on tax-favored accounts: 6% for excess…
SIMPLE IRA Early Withdrawals: 25% Penalty in First 2 Years
Retirement withdrawal rules are unchanged for 2024–2025: most distributions before 59½ face a 10% penalty, but SIMPLE IRA withdrawals within…
Roth IRA Qualified Distributions: Five-Year Rule and Exceptions
IRS reaffirmed Roth IRA rules for 2024–2025: qualified distributions need a 5-year period plus a qualifying event. Non-qualified withdrawals follow…
Self-Employment Tax Essentials: Rates, Deductions, and Filing Basics
Pay self-employment tax if net self-employment earnings reach $400, using Schedule C and Schedule SE; SE tax is 15.3% (2024…
Avoiding the 6% IRA Excess Tax: Timely Withdrawals and Reporting
Correct excess IRA or HSA contributions before the tax return due date (including extensions) by removing the excess and earnings…
Key Exceptions for Distributions from Qualified Plans and IRAs
Early retirement distributions before 59½ may incur a 10% tax, but statutory exceptions—such as medical expenses over 7.5% of AGI,…