In the United States, there are several financial thresholds that are adjusted for inflation annually to help households keep pace with the rising cost of living. However, not all thresholds receive this inflation adjustment, and the decision on whether or not to adjust for inflation largely depends on lawmakers’ discretion at the time the legislation
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When it comes to retirement savings, higher earners often face limitations on certain tax-advantaged accounts like Roth IRAs due to income restrictions. However, there is a lesser-known strategy that could benefit those looking to maximize tax-free growth for their retirement savings. Mega backdoor Roth conversions offer a way for individuals to surpass Roth IRA income
The job market in America is experiencing a significant shift in hiring trends, particularly in relation to income levels. For lower-earning Americans, the pace of hiring has remained strong, exceeding the pre-pandemic baseline. The hire rate for workers earning less than $55,000 a year has been consistent at 1.5% since September 2023, according to Vanguard.
As many Americans approach retirement age, the question of financial stability becomes increasingly important. However, recent research from the Schwartz Center for Economic Policy Analysis sheds light on a concerning trend – unpaid student loans are placing millions of older individuals at risk of financial insecurity post-retirement. The study delves into the financial situations of
The Delaware College of Art and Design recently made the difficult decision to close its doors due to low enrollment numbers for the upcoming school year. This closure was attributed in part to issues with the new Free Application for Federal Student Aid (FAFSA). The college’s president, Jean Dahlgren, acknowledged the long-standing challenges faced by
When it comes to claiming Social Security retirement benefits, experts agree that it’s generally best to delay claiming. This means waiting until full retirement age, which is typically between age 66 and 67, or even longer until age 70 to receive the highest benefit amount. Despite this advice, many individuals still choose to claim early
Roth individual retirement account conversions have seen a significant increase in 2024, with a 44% year-over-year rise in the number of conversions during the first quarter, according to data from Fidelity Investments. A Roth conversion involves transferring pretax or nondeductible individual retirement account funds to a Roth IRA, which offers tax-free growth in the future.
In today’s society, buy now, pay later programs are becoming increasingly popular among consumers struggling to make ends meet amidst rising debt levels. According to the Federal Reserve Bank of New York, Americans collectively owe $17.5 trillion in various forms of debt, with credit card debt alone amounting to $1.12 trillion. Buy now, pay later
The gender pay gap is a pervasive issue that affects women across various racial and ethnic backgrounds. While March 12 marks equal pay day for women in general, signifying how far into the new year they have to work to match their male counterparts’ earnings from the previous year, the situation is even more dire
In the age of social media influencers, the idea of small businesses hiring their own children for tax benefits has become a popular topic. However, tax professionals warn that many of these posts contain misinformation and lack the necessary nuance to fully understand the rules and regulations surrounding this practice. While there may be a