Monday, October 30, 2023

Roth IRA Rules-What are you allowed to do with your account?

A Roth IRA is a tax-advantaged savings account that can help boost your retirement savings. Because the IRS provides tax benefits for Roth IRAs, they come with a lot of rules. And, if you don't follow those rules, you may lose some of those benefits.

Roth IRA contribution rules

The annual Roth IRA contribution limit for 2022 is $6,000, or your total annual salary, whichever is smaller. In 2023, the limit increases to $6,500. Those 50 and older can make an additional $1,000 in catch-up contributions, bringing their total limit to $7,000 in 2022, or $7,500 in 2023.

There are also income limitations restricting who's eligible to contribute. In 2022, single filers require a modified adjusted gross income (MAGI) of $129,000 or less to contribute the full amount to a Roth IRA. That number climbs to $138,000 in 2023. Married couples can earn a combined $204,000 for 2022 and $218,000 for 2023. 

Single filers with MAGIs above the income limit of $144,000 in 2022 (or $153,000 in 2023) cannot contribute at all; married couples cannot contribute if they report a MAGI above $214,000 in 2022 (or $228,000 in 2023). If your MAGI is lower than this but still higher than the limit for contributing the full amount, you can contribute a reduced amount to a Roth IRA.

Roth IRA withdrawal rules

When you make a Roth IRA withdrawal, your money comes out in a specific order. This is important because each amount gets different tax treatment if you're making an unqualified distribution -- one that doesn't meet certain IRS criteria and is therefore potentially subject to extra taxes.

  1. Contributions: Contributions are withdrawn first because they can be withdrawn tax- and penalty-free at any time.
  2. Roth conversions: Conversions are withdrawn second, but they require a five-year wait starting from Jan. 1 of the year of the conversion. Otherwise they're subject to a 10% penalty.
  3. Earnings: Earnings are withdrawn last and will be subject to taxes at your income tax rate if you're taking unqualified distributions.

Roth IRA distribution rules

You can withdraw Roth IRA contributions tax- and penalty-free at any time. However, early withdrawals of earnings -- those made before the age of 59 1/2 -- will incur a 10% early withdrawal penalty. According to the IRS, a withdrawal becomes a qualified Roth IRA distribution and is therefore not subject to taxes or penalties when it meets the following criteria:

First, a minimum of five years must have passed since the year of your first contribution to any Roth IRA. (See below for more on meeting the five-year rule.) Second, you must also meet one of the following conditions for a withdrawal to count as a qualified distribution:

  • You're at least 59 1/2 years old.
  • You're totally and permanently disabled.
  • You're withdrawing up to $10,000 for a first-time home purchase.
  • You choose to take substantially equal periodic payments.
  • You become disabled or die (and the distribution is taken by your heirs).
  • You're paying medical insurance premiums during a period of unemployment.
  • You're putting the money toward higher education expenses.
  • You're paying back taxes to the federal government for a levy placed against your Roth IRA.

If you fail to meet the five-year rule but meet one of the other criteria for a qualified distribution, your Roth conversions and earnings will be exempt from the 10% penalty, but you'll still owe income tax on the earnings portion of your withdrawal.

Roth IRA required minimum distributions

There are no required minimum distributions for a Roth IRA during the account owner's life.

If you inherited a Roth IRA from your spouse and elect to treat it as an inherited IRA instead of doing a spousal transfer, you'll be required to take minimum distributions based on your own life expectancy. This option used to be available to nonspouse beneficiaries, but the SECURE Act restricted it starting in 2020.

Roth IRA five-year rules

There are two main five-year rules for Roth IRAs:

  • The first rule states that withdrawn earnings will be taxed unless at least five years have passed since the year of your first Roth IRA contribution. The clock starts on Jan. 1 of the year for which you made a contribution of any amount to any Roth IRA. If you contribute to a Roth for the first time in early 2023 (prior to the tax deadline) but the contribution was for the 2022 tax year, then the starting point was Jan. 1, 2022. The five-year requirement will then be met on Jan. 1, 2027.
  • The second rule is that Roth conversions must remain in the account for at least five years before withdrawal. The clock starts on Jan. 1 of the year you make the conversion. Withdrawing conversions early results in a 10% penalty unless you otherwise meet the criteria to avoid this penalty.


    Roth IRA rollover rules

    Roth IRAs are eligible to receive rollovers from a wide variety of account types, including:

    There's no limit to the amount you can roll over, but it must be from another account into a Roth IRA. You cannot roll over in the opposite direction -- from a Roth IRA into another type of account.

    When you roll over funds from a pre-tax account, you'll have to pay income taxes on the previously untaxed amount you roll over. This is considered a conversion.

    Roth IRA conversion rules

    You can convert funds from a traditional IRA or many other pre-tax retirement accounts into a Roth IRA. There's no limit to the amount you can convert; however, doing so requires you to pay income tax on the previously untaxed portion of the funds you're converting.

    Roth conversions cannot be recharacterized as traditional IRA funds. This option was eliminated in 2018 by the Tax Cuts and Jobs Act.

    Inherited Roth IRA rules

    If you inherit a Roth IRA from your spouse, you have several options:

    • Treat the IRA as your own.
    • Treat it as an inherited IRA and begin taking required minimum distributions based on your life expectancy beginning the year following the owner's death.
    • Treat it as an inherited IRA and deplete the account within five years.
    • Take a lump-sum distribution.

    If you inherit a Roth IRA from someone other than your spouse, your options have been limited by the 2019 SECURE Act. These beneficiaries may take a lump-sum distribution or cash out the account within 10 years. 

    Roth IRA transfer rules

    When you are transferring Roth IRA funds from one custodian to another, such as in a rollover or conversion, there are two common methods:

    • Direct transfer: The assets are transferred directly to the Roth IRA account at your preferred financial institution. This type of transfer can be done in kind, which allows you to keep your existing investments rather than converting them to cash.
    • Indirect transfer: You request a check from your custodian and personally deposit the cash in your other Roth IRA. This method is subject to the 60-day rule, meaning you have only 60 days (from the time of fund dispersal to the time of submission to a new account) to transfer your funds tax- and penalty-free. If you fail to complete the transfer within 60 days, you may owe an early withdrawal penalty and income taxes on a portion of it. Additionally, you'll be unable to redeposit the funds into a Roth account beyond your annual contribution limit. Doing so will result in an excess contribution.

    Roth IRA trading rules

    There are some investments the IRS prohibits you from holding in a Roth IRA:

    • Collectibles, including art, rugs, metals, antiques, gems, stamps, coins, alcoholic beverages such as fine wines, and certain other tangible personal property
    • Life insurance

    The IRS also doesn't allow you to invest borrowed money in your Roth IRA. Therefore, margin accounts are prohibited. Certain options contracts that could require margin borrowing are off-limits, and you're also unable to short-sell stocks.

    Other than these restrictions, there's nothing preventing you from day trading in your Roth IRA. Day trading in a Roth IRA protects you from paying taxes on your gains. However, it also means you cannot write off your trading losses -- which is the more likely result for most people attempting to day trade.

    Custodial Roth IRA rules

    A custodial Roth IRA allows you to put money away for your child if they earned income. An adult custodian will maintain control of the account for the benefit of the minor until they reach age 18 or 21 (depending on the state they live in). The beneficiary then takes full control of the Roth IRA, converting it into a standard Roth IRA.

    Custodial Roth IRAs follow the same rules regarding contribution limits, withdrawals, and trading as regular Roth IRAs.



    Source: https://www.fool.com/retirement/plans/roth-ira/roth-ira-rules/


Thursday, October 26, 2023

How to Keep Busy During Your Golden Years

As you get older and begin to enter what’s known as your golden years, you find you have more free time to unwind and relax. However, what you choose to do with all these extra hours of your day is incredibly important.

Keeping your mind busy and active over the years is crucial. In fact, refusing to do so could result in:

    General decreases in cognitive function
    Increased risk of Parkinson’s
    Increased risk of Alzheimer’s
    Inability to multitask

Overall, keeping your mind healthy and active can reduce or even reverse the effects of ageing. So, how exactly can we keep busy during our golden years? If you’re looking for a solution, we’ve got you covered. Keep reading to discover the six of the most mindful activities.

Go For a Daily Walk

Going for a daily walk and soaking up the fresh air is a great way to keep both the body and mind active. Start off small with a quick 20 minute walk each day and slowly work your way up to longer periods of time. You’ll get to interact with locals, get to know your area better, and get some physical exercise in at the same time.

Join a Senior Home Care  

Loneliness is one of the greatest factors that affect ageing citizens, which is why it’s never a bad idea to consider a place like Visiting Angels Kennewick – Senior Home Care. Make sure to find a place that isn’t too far away from family so they can come visit on a regular basis.

Take a Day Trip

Getting out and exploring new places is a fantastic way to spend your time. You can find plenty of day trips to nearby cities or landmarks that are specifically geared towards senior citizens. You may even make a friend or two!

Volunteer at a Charity

One of the best ways to spend your time is by volunteering your time and contributing towards a greater cause. Charities are constantly looking for new volunteers to help out so you’re bound to find an organisation that’s right for you.

Try a Group Sports Class

Getting that blood pumping and body moving is an excellent way to keep busy. Plus, if you find a group sports class, you also get to socialise with others in your area.

Complete a Puzzle Daily

Last but not least, you can set yourself the challenge of completing a puzzle each day. This will help you keep your brain active and improve your short-term memory. Not to mention, every time you complete a puzzle, your brain releases dopamine which is a powerful mood enhancer.

All in all, there are so many activities you can do to keep busy; you just need to have the right mindset. Don’t be afraid to go out and meet new people as socialisation also plays a key part in training your brain to be healthy. If there’s any hobby you’ve dreamt of doing or any place you’ve fancied visiting, there’s no better time than the present. 

Source: https://inspiyr.com/how-to-keep-busy-during-your-golden-years/

Friday, October 6, 2023

Bosses want people back in the office, but employees are finding a workaround—it's called 'coffee badging'

Yannique Ivey may be going back to the office, but she’s open about the fact that you won’t catch her first thing in the morning. Wait too long in the day and you’ll miss her, too.

Ivey, 27, works for a tech consulting firm in Atlanta and says she drives into the office once or twice a month. When she’s there, she commits to an 11 a.m. to 3 p.m. schedule — just in time for a catered lunch, to catch up with colleagues for a few hours, and head out before traffic stalls her in a “hellish” commute home, she tells CNBC Make It.

She and her team are open about this arrangement. Spending a few shortened days in the office each month “takes needed time away from the actual work” to socialize and build community, she says, but “I’m a lot more productive when I’m home, so I get started there and wind down from there.”

It’s a new arrangement picking up across the U.S.: Workers are showing up for required attendance, but that doesn’t mean they’re sticking around for the full day.

More than half, 58%, of hybrid workers admit to “coffee badging,” or the act of going into the office building for their morning coffee, earning an imaginary badge for it, and then going home to work for the remainder of the day.

That’s according to a June survey of 2,000 people from Owl Labs, a company that makes videoconferencing devices.

Another 8% of hybrid workers say they haven’t tried coffee badging just yet but are interested in doing so.

The next frontier of hybrid is working when you want

Despite the half-days (or less), the coffee badging trend doesn’t mean people are sneaking out and slacking off for the rest of the afternoon, says Frank Weishaupt, CEO of Owl Labs.

As he sees it, the practice could mean people are seeing the value of their office and enjoy being there some of the time. Survey respondents say they value being in-office to meet with colleagues, catch up with work friends and take meetings.

On the other hand, Weishaupt says, there may be another subset of people who use coffee badging as a way to “show their face in an old traditional way that we used to work” without having to be there for the full day.

The standard has been set around flexibility in terms of where you work, and now the standard is starting to become flexibility in when you work.Frank Weishaupt,CEO of Owl Labs

Some office attendance guidelines only dictate a number of days bosses want people in, but not always the hours people should be present. So, “coffee badging gives you the opportunity to maintain your flexible schedule, which is incredibly important to employees,” Weishaupt says.

Weishaupt himself does the reverse of coffee badging, where he’ll start his day from home, drive in mid-day to avoid morning traffic, and finish the rest of his day from the office.

“The standard has been set around flexibility in terms of where you work, and now the standard is starting to become flexibility in when you work,” he adds. The traditional 8-hour workday from the office “just doesn’t seem all that relevant.”

In the Philadelphia area, Kynisha Gary, 30, says coffee badging helps her find balance as a parent and Penn State student. She reports to her nonprofit’s office on Tuesdays, Wednesdays and Thursdays and sometimes leaves around lunch to pick up her son from school and then finish the day from home.

It’s a major productivity boost, Gary says: “I get all my work done — nothing goes missing on the days I go home and finish work from there.”

She enjoys having control over her hybrid schedule even more than when she worked for a company that was fully remote, she adds. “I looked forward to getting back to into the office and being interactive,” she says. “Being exclusively at home was double the work and harder to get away from work.”

Ivey says the flexibility “helps us feel that we are more in control of our work-life balance and lifestyle in general, not feeling the demand and pressure to have to integrate back into the office all the time.” She says the arrangement feels natural in her work environment, where her company wants to “ensure we’re happy outside of the work we’re doing.”

Taking office attendance is ‘a trust killer’

Men are more likely to show up and leave early (62%) than women (38%). Age-wise, millennials are the most likely generation to do so, followed by Gen Xers, then Gen Zers, and finally baby boomers.

“There are still trust issues between employers and employees as it relates to productivity,” Weishaupt says, and “the reality is we’re in this state where employees want flexibility, they’ve proven they can do it, [and] they don’t need to be hired to be watched doing the job.”

Ultimately, Weishaupt says, “the office still has a place. I don’t think anybody would question that.”

Meanwhile, some companies like Meta, Google, Amazon and JPMorgan Chase say they’re cracking down on office attendance through badge swipes and other methods, The Wall Street Journal reports. Other businesses track not just when their employees come into the office, but how long they stay by logging things like when they badge into another floor or use their phone to print documents.

Office attendance monitoring is “a trust killer,” Weishaupt says. “If I feel like I have to be sitting at my desk at 4:30 on Friday, even though I’m not doing anything productive, [because] my boss might call me — there’s a trust issue there”

“This isn’t grade school,” he adds. “We’re not hiring people to watch them work. We’re hiring them to do a job. And it’s the culture of accountability and leadership setting the right tone to be able to measure productivity that makes all the difference here.”

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Check out: Offices remain half full after latest round of RTO mandates: Taking away hybrid could be a ‘betrayal’

Source: https://www.cnbc.com/2023/10/05/as-return-to-office-mandates-pick-up-employees-find-coffee-badging-workaround.html

Saturday, September 30, 2023

Top 10 Essential Tips for Maintaining Men’s Health



In an era defined by its relentless hustle and never-ending notifications, prioritizing your well-being can inadvertently slide down the list.

To counter this, we’ve curated a set of simple, practical strategies tailored for every gentleman aiming to seamlessly integrate health into their daily routine.

1. Supplements: Boost Your Wellness

A simple way to uplift men’s health is by adding supplements to your meals. 

For men, in particular, certain supplements can play a pivotal role in enhancing various aspects of health. Take, for instance, Tongkat Ali Australia, a popular supplement known for its myriad benefits. Whether it’s bolstering energy levels, enhancing muscle growth, or supporting overall vitality, supplements like these can fill in the nutritional gaps, ensuring you remain at your best.

Before diving into supplements, chat with a health expert to find what’s right for you. After all, we all have different needs, so it makes sense to speak with someone who can help you understand what sort of supplements will benefit you.

2. Eat Well

A balanced diet is health’s best friend. Fill your plate with:

  • Fruits and veggies
  • Lean meats like chicken, fish, and plant proteins
  • Whole grains
  • Nuts and seeds
  • Dairy or its alternatives

Cut back on processed foods, sugary drinks, and too much red meat. Keep an eye on portions to avoid overindulging. Eating right fuels your body the best way.

3. Move Often: Keep Active

Exercise is a game-changer for men. Not only does it help you stay in shape, but it also wards off diseases like heart issues and diabetes. Aim for 150 minutes of medium or 75 minutes of high-intensity exercise weekly.

Mix cardio, strength training, and stretches. Find fun workouts, be it running, swimming, or team sports. Being active is great for both body and mind.

4. Hydration: Keep the Water Flowing

Water is the elixir of life. Staying well-hydrated is key for overall wellness. When dehydrated, you might feel tired or struggle to think straight. Guys should aim for about 3.7 liters or roughly 13 cups daily. But it can vary based on where you live and how active you are.

Have a water bottle with you to make sipping easy. While coffee and tea count towards hydration, water is king.

5. Sleep Well

Never underestimate good sleep. Too little sleep can mess with your mood and thinking and even up your risk for some diseases. Target 7-9 hours of solid sleep each night.

Set a sleep routine, and make your bedroom a sleep haven: dark, cool, and cozy. Limit screens before bedtime and avoid caffeine or big meals too close to hitting the sheets.

Man sleeping in bed
Photo by Andrea Piacquadio: https://www.pexels.com

6. Handle Stress: Mind Your Mind

Men often juggle many stressors. It’s vital to manage stress and keep mental health front and center. Consider these stress busters:

  • Meditation and mindfulness
  • Exercise
  • Connect with loved ones
  • Reach out to mental health pros if needed

7. Health Check-ins

Staying on top of your health is vital. Regular chats with your doctor can catch and tackle issues early on. For guys, key checks include:

  • Blood pressure
  • Cholesterol levels
  • Blood sugar readings
  • Prostate and skin cancer screenings
  • Dental visits

Being proactive means catching issues before they escalate.

8. Watch the Booze

A little alcohol might be okay, but too much? Not so much. Men should cap it at two drinks daily. Remember, one drink is 12 ounces of beer, 5 ounces of wine, or 1.5 ounces of hard liquor.

Too much alcohol can harm your liver, heart, and more. So, sip wisely.

9. Stop Smoking

If you smoke, kicking the habit is a huge health win. Smoking brings on various diseases, from lung cancer to heart issues. Seek support to quit, be it from health pros or specific programs.

10. Limit Screen Time

In today’s tech-driven era, many of us find ourselves glued to screens for work, leisure, or socializing. Yet, prolonged screen exposure can tire our eyes, disrupt our sleep, and limit our physical movement. It’s wise to intersperse breaks throughout your screen sessions, adhere to the 20-20-20 principle (gaze at an object 20 feet away every 20 minutes for 20 seconds), and set boundaries by creating screen-free areas or periods in your living space. Beyond the tangible advantages, disconnecting can also alleviate stress and enhance mental clarity.

Essential Tips for Maintaining Men’s Health

Weaving these tips into your life can make a big difference in your well-being. Health isn’t a destination but a journey. Keep it at the forefront, lean on health pros when needed, and commit to treating yourself well. Your health is worth every effort, and by embracing these suggestions, you’re setting yourself up for a vibrant, happy life.

Source: https://aspiringgentleman.com/health/top-10-essential-tips-for-maintaining-mens-health/