Sentences with phrase «regular after tax money»

Not exact matches

Although you don't have to pay taxes on the money contributed to a 403 (b) or Regular IRA now, you will have to pay tax on it, as well as the accumulated returns, when you receive the money after retirement.

I take it to mean that you have money in a Roth TRA account but it isn't invested into a stock fund, or that you have the money ready to go in a regular bank account and will be making a 2015 contribution into the actual IRA before tax day this year, and the 2016 contribution either at the same time or soon after.

The end result (again, assuming you did not have any previous money in pre-tax IRAs, so you don't have issues with the pro-rata rule) is the same as a regular Roth IRA contribution, which is better than a non-deductible Traditional IRA contribution because the earnings are after - tax too.

You could put money in a regular taxable mutual fund or brokerage account, paying taxes on your investment income every year, and racking up more tax liability when you sold your shares after their value had risen.

This frequent turnover of fund investors AND the regular distribution of capital gains from the funds themselves leads to regular capital gain taxes, leaving less after - tax money to be reinvested in a new actively managed fund, further reducing the active investor's chances at «beating the market.»

Employer plans can now offer the opportunity to move 401k or 403b money from a regular (pre-tax) account to a designated Roth account (an after - tax account) within the plan.

Later, when you start to withdraw money from the account, it's taxed like regular income — as long as you make the withdrawals after the age of 59 1/2.

When it came time to pay the IRS after filing my tax return, I had to dip into my savings for the money, which felt more like a huge, unwanted penalty than it did paying one's regular taxes.