Individual retirement accounts

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If you made a Roth individual retirement account conversion in 2022, you may have a more complicated tax return this season, experts say. The strategy, which transfers pretax or non-deductible IRA funds to a Roth IRA for future tax-free growth, tends to be more popular during a stock market downturn because you can convert more assets at a lower dollar amount. While the trade-off is upfront taxes, you may have less income by converting lower-value investments."You get more bang for your buck," said Jim Guarino, a…

Jamie Grill | Getty ImagesIt's not easy to prioritize financial goals, especially when choosing between two essentials in an unsteady economy: saving for retirement or building your emergency fund. While there are higher 401(k) contribution limits for 2023, you shouldn't skip rainy day savings to max out your retirement plan, experts say. Indeed, more than half of savers are prioritizing short-term financial goals in 2023, including emergency savings, according to a recent study from Fidelity Investments. And a recent…

The end of the year is an important time for making financial decisions that can have an impact in the year ahead — and for years to come.From your work to your savings and investments to spending and giving back, here are five moves you should consider making before Dec. 31 that can help to prepare you for financial success in 2023:   1. Make sure you didn't pay too little tax on 2022 incomeCn0ra | Istock | Getty ImagesYou don't want to wind up paying interest and penalties or a big tax bill next year because you didn't…

If you're eager to save more for retirement in 2023, there's good news from the IRS: higher limits for your annual 401(k) plan and individual retirement account contributions.The employee contribution limit for 401(k) plans is increasing to $22,500 in 2023, up from $20,500, and catch-up deposits for savers age 50 and older will jump to $7,500, up from $6,500. The new amounts also apply to 403(b), most 457 and Thrift Savings Plans.The agency has also increased contribution limits for IRAs, allowing investors to save $6,500…

Millions of Americans can save more in retirement accounts next year, after inflation adjustments made Friday by the Internal Revenue Service.The employee contribution limit for 401(k) and similar workplace plans will jump $2,000 to $22,500 for 2023, the largest increase ever in terms of dollars and percentage, according to benefits provider Milliman. The amount taxpayers can contribute to an individual retirement account will be $6,500 for 2023, up from $6,000. The limit hasn’t changed since 2019. The 401(k)…

Zinkevych | iStock | Getty ImagesIf you inherited a retirement account in 2020 or 2021, the IRS is waiving penalties for some heirs who needed to start taking required minimum distributions right away, according to a notice issued Friday.The new rule won't apply until 2023.Typically, there's a 50% penalty when you skip RMDs or don't take the full amount by the deadline, applying to the balance that should have been withdrawn.Thanks to the Secure Act of 2019, certain heirs, known as "non-eligible designated beneficiaries,"…

If you're racing to meet the Oct. 17 tax extension deadline, make sure you don't skip key forms as you're rushing to the finish line, experts say.It's critical to file a complete and accurate return to avoid processing delays, according to the IRS, including details from all the necessary forms.Further, you may prevent stalled refunds and future IRS notices by filing an error-free return online with direct deposit.More from Personal Finance:As demand soars for Series I bonds, TreasuryDirect gets a makeoverThe job market…

TOKYO—The U.S. dollar’s rise to a 24-year high against the yen is great news for Japanese savers who put a chunk of their retirement nest eggs into dollar-denominated assets.The biggest such saver is the Japanese government. Now it faces decisions about what to do with its windfall—including whether to sell some of its dollar stash. Tokyo’s piggy bank is called the Government Pension Investment Fund, the world’s largest of its kind with assets equivalent to $1.34 trillion as of June 30. That is about three times the size…

WASHINGTON—The Internal Revenue Service inadvertently posted what is normally confidential information involving about 120,000 individuals before discovering the error and removing the data from its website, officials said Friday. The data are from Form 990-T, which is often required for people with individual retirement accounts who earn certain types of business income within those retirement plans. That typically includes people whose IRAs are invested in master limited partnerships,…