2 results for tag: Tax-Deferred
Act Now: Earn 9.62 Percent Tax-Deferred
From now (today) through October 2022, you can buy Series I Bonds that pay 9.62 percent interest. And you receive that rate for six months from the time of purchase.
What happens after that? On November 1, 2022, the U.S. Treasury Department sets a new six-month rate equal to the fixed rate (currently zero) plus the Consumer Price Index inflation rate.
The interest you earn for the first six months gets added to the principal, and you earn interest on that interest during the next six months (think compound interest).
Sounds too good to be true. There’s a trick, right? Not really, but the government keeps your money, both your principal ...
SEP-IRA vs Solo 401(k): Which Should You Choose?
Parts of this article are published with permission from Bradford Tax Institute, © 2022 Daniel Morris, Morris + D’Angelo
One way to multiply your net worth is to let the government help.
Hereʼs How: With both the SEP IRA and the solo 401(k) retirement plans, your investment in your tax-favored retirement
Creates tax deductions for the money you invest in the plan,
Grows tax-deferred inside the plan, and
Suffers taxes only when you take the money from the plan.
Example: You invest $1,000 a month in your retirement. You are in the 40 percent tax bracket (combined federal and state), and you earn 10 percent on your investments. At the ...