Sentences with phrase «large lump sum contribution»

If you make a large lump sum contribution of $ 25,000 this will create a tax refund of about $ 8,000 (assuming a marginal tax rate of 32 %).

529 college savings plans also allow for larger lump sum contributions using 5 - year gift tax averaging.

Not exact matches

«Making smaller, regular contributions throughout the year is much easier than making one large lump - sum contribution to your RRSP,» he said.

Some investors will save up their contributions and then make a larger purchase when they feel the timing is right — this is called a lump sum purchase.

I personally invest lump sum into individual stocks (I «ve been building up a passive dividend income stream for years), mainly because I want to get a large dividend contribution from a stock at the time I believe the price is right.

How do I go about making contributions using this strategy if I want to make pre-authorized monthly payments, as I do not have a large lump sum to invest?

Are there any benefits to making contributions spread out over the year vs as one or more large lump sums?

With a 529 plan, you could give $ 75,000 per beneficiary in a single year and treat it as if you were giving that lump sum over a 5 - year period.3 This approach can help an investor potentially make very large 529 plan contributions without eating into his or her lifetime gift - tax exclusion.