Tax Tip: Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. If neither the taxpayer nor…
Read more
Early Withdrawals From Retirement Plans
An early withdrawal normally is taking cash from a retirement plan before the taxpayer is 59 1/2 years old. If a taxpayer took an early withdrawal from a retirement plan last year, they must report it to the IRS. Additionally, the taxpayer may have to pay an additional 10% in taxes. If you need assistance with…
Read more