To qualify for Social Security retirement benefits, you must generally have “40 quarters of coverage.” This means that you must have been working for 10 years and earning at least the minimum income (adjusted annually for inflation) required to receive a quarter of coverage.
For example, in 2017, you can receive one quarter of coverage for each $1,300 of earnings, up to the maximum of four quarters of credit per year. Thus, the maximum amount of income needed to earn …
Although most 401(k) plans offer loans of up to half your vested balance, this may not be a good idea. Plan loans usually charge the prime rate plus one or two percentage points. In addition, you lose all future compound interest on the lost earnings on money that was borrowed. If you quit your job or are laid off or fired, your loan may be due immediately at a time when you can least afford to pay it back.
If …
Although the IRS typically allows people to gift no more than $14,000 a year (2017 figure) to another person without a federal gift tax, you can contribute up to $70,000 to a 529 plan in one year. A special tax law allows you to aggregate five years of the allowable $14,000 annual gift-tax exclusion (5 x $14,000 = $70,000) to jump-start a 529 plan.
While you will not be able to make any further gifts to the 529 plan for …
A nonrefundable retirement saver’s tax credit is available for individuals with low incomes. In 2017, a single person making up to $18,500 or a couple making $37,000 or less can qualify for a 50 percent tax credit on the first $2,000 they each save toward retirement. For example, an individual who contributes $2,000 to an IRA could qualify for a $1,000 tax credit. The tax credit phases out as income increases.
A single person earning $18,501 to $20,000 and a …
In the early days of 529 plans, once you selected an investment option within a college savings plan, you could not change that option. Only new contributions could be invested in different investment options.
Under current rules, however, the IRS allows you to change your investment options in a college savings plan once every calendar year.
For more information, see http://www.sec.gov/investor/pubs/intro529.htm.
We would like your feedback on this Personal Finance Frequently Asked Question.…
The Social Security Administration provides a benefit estimate online at http://www.ssa.gov/mystatement/. Users must establish a user name and password when they use this Web site for the first time. This is to assure that their private data is secure.
The benefit estimate includes a record of earnings on which you have paid Social Security taxes. It also includes an estimate of your Social Security disability, survivor, and retirement benefits based on those earnings.Retirement benefit estimates are provided for ages …
A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for up to 10 years.
There is no time limit on reporting information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you’ve applied for more than $150,000 worth of credit or life insurance.
Information about a lawsuit or an unpaid judgment against you can be reported for seven …
If you gave any one person gifts valued at more than $14,000 (2017 figure), it is necessary to report the total gift to the Internal Revenue Service. You may even have to pay tax on the gift. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.
You make a gift when you give property, including money, or the use or income from property, without …
No. You cannot split your refund between a direct deposit and a paper check. According to IRS tax refund procedures, you can either opt for the safety, security, and speed of direct deposit to one, two, or three different accounts, or you can request your refund via a paper check, but you cannot combine the two refund methods.
We would like your feedback on this Personal Finance Frequently Asked Question.…
Effective January 1, 2008, so-called “Kiddie Tax” rules pertaining to a child’s investment income were changed. The age limit for this tax increased to include children who are 18 or younger and full-time students over 18 but under age 24. Investment income greater than a specified annual amount for a child affected by the kiddie tax is taxed at the marginal tax rate of the child’s parents.
Exceptions apply for children with paid jobs that provide a large portion of …
