When it comes to maximizing tax-free retirement savings, high-income earners often face limitations due to income thresholds for Roth IRAs. However, there is a relatively unknown strategy called mega backdoor Roth conversions that can help these individuals overcome those barriers. This method involves transferring after-tax 401(k) contributions to a Roth account, allowing investors to take
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Recent data from Vanguard reveals interesting insights into the hiring patterns across different income brackets in the United States. The data shows that while the pace of hiring remains strong for lower-earning Americans, there has been a slight decline in the demand for higher-income workers. The hire rate for the bottom one-third of workers by
As per research from the Schwartz Center for Economic Policy Analysis at the New School for Social Research, unpaid student loan debts are posing a significant threat to the retirement savings of millions of older individuals in the United States. The study, which analyzed data from the Federal Reserve Board’s 2022 Survey of Consumer Finance,
The closure of the Delaware College of Art and Design has brought to light the challenges faced by many independent art and design schools. These challenges stem from a variety of factors, including declining enrollment, a shrinking pool of college-age students, rising costs, and issues with the Free Application for Federal Student Aid (FAFSA) form.
When it comes to claiming Social Security retirement benefits, the general consensus among experts is that delaying the claim is the most financially advantageous strategy. Despite this advice, many individuals still opt to claim benefits early, either at age 62 or before reaching their full retirement age. However, early claims result in a significant reduction
The year 2024 has seen a significant increase in Roth individual retirement account conversions, with a 44% rise in the number of conversions during the first quarter, according to data from Fidelity Investments. While Roth conversions offer the benefit of future tax-free growth by transferring pretax or nondeductible IRA funds to a Roth IRA, it
Buy now, pay later programs have become increasingly popular among consumers looking to spread out the cost of purchases over time. While traditional forms of debt like credit cards and loans are easily quantifiable, the use of BNPL programs adds a layer of “phantom debt” that often goes unnoticed. According to a report by NerdWallet,
The gender pay gap is a well-known issue that affects women across various ethnicities in the workforce. However, for Asian American, Native Hawaiian and Pacific Islander (AANHPI) women, the disparity in pay extends beyond just the typical March 12 equal pay day. In fact, AANHPI women must work until April 3 to earn the same
Hiring your children if you are self-employed can have significant tax benefits, but it’s essential to follow labor laws and IRS regulations to avoid any issues down the line. While the topic of small businesses hiring their own kids has gained popularity on social media platforms like TikTok, Instagram, and YouTube, it’s crucial to separate
In recent years, there has been a noticeable increase in the number of merchants offering discounts to customers who pay with cash instead of credit cards for their purchases. These cash discounts usually range from 2% to 4%, with some saving even higher. Although only a small percentage of cash transactions currently offer discounts, data