New Procedure Helps People Making IRA and Retirement Plan Rollovers

The following article was published by the IRS.

old man in chairThe Internal Revenue Service recently provided a self-certification procedure designed to help recipients of retirement plan distributions who inadvertently miss the 60-day time limit for properly rolling these amounts into another retirement plan or individual retirement arrangement (IRA).

In Revenue Procedure 2016-47, posted today on IRS.gov, the IRS explained how eligible taxpayers, encountering a variety of mitigating circumstances, can qualify for a waiver of the 60-day time limit and avoid possible early distribution taxes. In addition, the revenue procedure includes a sample self-certification letter that a taxpayer can use to notify the administrator or trustee of the retirement plan or IRA receiving the rollover that they qualify for the waiver. Continue reading

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5 Best Personal Finance Tips

Here are some personal finance tips that will serve you well in life:

  1. Start investing early. Taking advantage of extra years of compound interest is the best way to retire well.
  2. Avoid conspicuous consumption. Don’t buy it if you don’t really need it. Buying things just to keep up will make you feel like you’re always broke, no matter how much you make.
  3. Don’t pay interest. While a mortgage, reasonable car payment, or student loans are okay, credit card debt is not. Save for something rather than going into debt.
  4. Have an emergency fund. When you get hit with unexpected expenses, you don’t want to have to take out a loan or put it on your credit card.
  5. Budget for everything. A budget isn’t just for big expenses, but should help you track every dollar, including spending and savings.
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Five Tips for Starting a Business

The following article was published by the IRS.

architectUnderstanding your tax obligation is one key to business success. When you start a business, you need to know about income taxes, payroll taxes and much more. Here are five IRS tax tips that can help you get your business off to a good start: Continue reading

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Get Your Business Ready for Disasters

Weather experts are saying that the 2016 Atlantic hurricane season is expected to be the most active since 2012.

Have you considered how important it is to have a disaster plan in place for your business? Start by finding out about the types of disasters and emergencies that could affect your business, then make your plans.

Make sure you talk to your employees before disaster strikes, and even involve them in planning.

It’s a good idea to practice your plan throughout the year so it’s constantly updated. Protect your business investment and your employees.

To learn more, visit ready.gov.

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Find Easy-to-Use Online Tools on IRS.gov

Laptop, cellphoneIf you need tax help, the IRS has many online tools. You can e-file your tax return, check your refund status or get your tax questions answered. Best of all, you can use the tools on IRS.gov any time. Heres a list of popular online, self-help tools that millions have used for free: Continue reading

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How to Retire Early: The Shockingly Simple Math

The premise behind retiring early is investing your money to the point where your investments are making enough each year for you to live on. Then you are ready to retire.

These investments could be stocks, bonds, real estate, or any other type of investment vehicle.

Get to know your savings rate: how much you make, minus your expenses. If you spend 100% of your income, you’ll never be able to retire because you’ll never be able to invest any money that will earn money for your retirement. The goal is to get to the place of living in a way in which you don’t need to make any additional money.

The percentage of your income that you can save annually has a direct impact on how many years until you’ll be able to retire. If you want to retire in 10 years, you need to invest 66% of your income.

Cutting your spending rate is way more powerful than increasing your income.

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How Selling Your Home Can Impact Your Taxes

The following article was published by the IRS.

new homeUsually, profits you earn are taxable. However, if you sell your home, you may not have to pay taxes on the money you gain. Here are ten tips to keep in mind if you sell your home this year.

Exclusion of Gain. You may be able to exclude part or all of the gain from the sale of your home. This rule may apply if you meet the eligibility test. Parts of the test involve your ownership and use of the home. You must have owned and used it as your main home for at least two out of the five years before the date of sale. Continue reading

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