Are you an avid collector of a specific item, such as trading cards, rare coins or antique toys? Not only can collecting be an enjoyable hobby, but it also can be financially lucrative if you buy and sell collectibles in the marketplace.
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If your company has a qualified retirement plan or you have set one up in self employment -- such as a 401(k), profit-sharing, or Keogh plan -- the participants might be allowed to borrow from their accounts. (This option is not available for traditional IRAs, Roth IRAs, SEPs, or SIMPLE-IRAs.)
Tax-favored Section 529 college savings plans — also known as qualified tuition programs — have been around long enough that many people are now withdrawing money to pay for school. Qualified withdrawals are always federal-income-tax-free and usually state-income-tax-free, too. However, the full story isn't quite so simple. Here are the key details.
When you adopt a child, you could bring home more than a bundle of joy. You may also be in line for a valuable tax credit.
Nowadays, many employer retirement plans give employees the option of contributing to designated Roth accounts (DRAs). According to a 2020 survey, 75% of employer plans now offer DRAs, which are also known as Roth 401(k) accounts.
The Department of Labor's Employment and Training Administration (ETA) reports "unprecedented increases in unemployment insurance (UI) claims amid the pandemic and related surges in fraudulent filing in states' systems by sophisticated criminal rings." This has caused widespread problems for states, employers and employees alike.
Special purpose acquisition companies (SPACs) provide an alternate route for start-ups to access public markets instead of traditional initial public offerings (IPOs). Roughly 200 SPACs debuted in 2020, drumming up close to $64 billion in funds. In fact, in 2020, there was as much capital raised through SPAC offerings as in the prior 10 years. That momentum has continued in 2021. Here's what you should know before investing in a SPAC.
First the bad news: Despite passage of the Tax Cuts and Jobs Act (TCJA), the individual alternative minimum tax (AMT) is still in place. But there's some good news: The law has made AMT rules more taxpayer-friendly through 2025. In addition, other TCJA changes reduce the odds that you'll owe the AMT for those years. Even so, you may still benefit from taking steps now to avoid or minimize it.
For many families, the tables may turn, and adult children provide financial support for their parents. For example, you might have moved your in-laws from a long-term care facility into your home during the pandemic for safety and convenience. Or your widowed father might still live in his own home, but his pension might not be enough to cover his living expenses, so you pay his rent and substantial medical costs.
The COVID-19 pandemic has changed the dynamics of many households. In most cases, schools stopped or limited in-person instruction, causing many children to engage in at-home learning. Some families moved disabled adult children or seniors from long-term care centers to their homes for safety and visitation reasons. These changes were ostensibly temporary, but some families may decide to stay the new course indefinitely.