Spousal IRAs are a type of individual retirement account designed for married couples where one spouse is not employed. The working spouse may contribute up to $5,500 per year (2017 figure) to an IRA, in the name of the non-working spouse, and up to $5,500 per year to his or her own IRA. As a result, a couple may contribute 100% of their income up to a total of $11,000 per year (2017 figure).
In addition, if you are age …
A marginal tax rate (also known as marginal tax bracket) refers to the percentage of the last dollar that someone earns (from their total annual income) that goes to taxes. There are currently seven federal marginal tax rates: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% in 2017.
For further information on marginal tax rates, based on taxable income and tax filing status, visit http://njaes.rutgers.edu/money/taxinfo/.
We would like your feedback on this Personal Finance Frequently Asked Question.…
The standard deduction is the amount that taxpayers can subtract from their adjusted gross income if they choose not to itemize deductions. The amount of the standard deduction is indexed annually for inflation. In 2017, the standard deduction is $6,350 for single tax filers and $12,700 for married couples filing jointly.
We would like your feedback on this Personal Finance Frequently Asked Question.…
Even if you don’t owe any taxes, you may qualify for tax credits that would result in a refund.
For example, the Earned Income Tax Credit (EITC) and Child Tax Credit both provide refundable tax credits. This means that, if the amount of a refundable tax credit is more than the amount of taxes due, the difference will be given back to you as a tax refund.
By not filing a tax return, an individual is missing out on the …
The phrase “long-term care” describes a variety of services that provide medical and non-medical care to people who have a chronic illness or disability. Long-term care helps meet health or personal needs. Most long-term care is to assist people with support services such as activities of daily living like dressing, bathing, and using the bathroom.
Long-term care can be provided at home, in the community, in assisted living, or in nursing homes. It is important to remember that people may …
FICO credit scores are not required by law to be made available free of charge like credit reports are. They may be purchased from the company that calculates the score or at www.myFICO.com.
Sometimes you can get your credit score for free as part of the process of applying for a loan. Ask the creditor that you have applied for a loan from to provide you with this information, especially if you have paid a fee for a credit …
Health Savings Accounts (HSAs) were designed by Congress to provide tax advantages to individuals enrolled in high deductible health care plans. Deposits to an HSA are used to pay qualified medical expenses.
The 2017 maximums for annual contributions to HSAs are $3,400 for individuals and $6,750 for a family. Money in the account grows tax deferred, so an HSA serves as a type of savings account to pay future health care expenses.
For more information, see http://njaes.rutgers.edu/healthfinance/health-savings-accounts.asp.
We would like …
With a target date mutual fund, investors simply need to pick a fund with a date at or near the year that they expect to retire. For example, there are funds with dates such as 2020, 2030, 2040, and 2050 in their title.
The fund manager will gradually change the asset allocation of the fund as time goes by so that, eventually, there will be a smaller percentage of the portfolio in stocks and a higher percentage in bonds and …
If you are under full retirement age, there is a $1 loss in benefits for every $2 earned in excess of a threshold ($16,920 in 2017) that is adjusted for inflation every year. A modified test applies for the year an individual reaches full retirement age.
If earnings for the months prior to reaching full retirement age are $44,880 or more (2017 figure), one dollar in benefits will be withheld for every $3 in earnings above the limit. Starting with …
“Teaser rates” (also known as “introductory rates” and “promotional rates”) are just that: low annual percentage rates (APRs) that are used to entice people to apply for a certain credit card. Unfortunately, these rates may not last long.
Most teaser rates expire and revert to a higher rate after six to 12 months. Specific policies are set by a credit card issuer. As a result of the 2009 CARD Act, teaser rates must be in effect for at least six …
