I know I have to leave money in my Roth individual retirement account (IRA) for at least five years before I can withdraw account earnings tax free for a first-time home purchase. I have two Roth IRAs at two different financial institutions. How does the five-year clock work in a situation like mine? You start … Read more
Harvey was passed up for a promotion he felt he deserved and he was angry. So he decided to give himself a raise — by padding his expense reports. Unfortunately, Harvey’s actions are not uncommon. According to the Association of Certified Fraud Examiners,* expense reimbursement was the third most frequent fraud scheme in the U.S. … Read more
What is the difference between a tax deduction and a tax credit? A tax deduction reduces the amount of your income that is subject to tax. For example, if you earn $80,000, deducting $10,000 of expenses would leave you with $70,000 of taxable income. A tax credit is a dollar-for-dollar reduction in tax liability. So, if … Read more
If you move because of a job change, you may be able to deduct certain move-related expenses on your tax return. To qualify, you must satisfy specific requirements. Distance. The distance between your new job location and your former home must be at least 50 miles greater than your old commute. Time. You must be … Read more
Employee benefits are a hot topic these days. Many requirements under the health care reform law take effect in 2014. On the retirement side, the administration’s 2014 budget plan calls for new limits on accumulations in tax-advantaged retirement plans. How these and other developments will change the benefits landscape remains an open question. But, at … Read more
Harvey was passed up for a promotion he felt he deserved and he was angry. So he decided to give himself a raise — by padding his expense reports. Unfortunately, Harvey’s actions are not uncommon. According to the Association of Certified Fraud Examiners,* expense reimbursement was the third most frequent fraud scheme in the U.S. … Read more