Your employer likes to keep employee file documentation that includes your initial job offer or contract, social security information, performance appraisals, and everything else related to your employment for a period of years. This documentation includes any notification that you are quitting your job or retiring. Employers keep this information to have a record of events. In any instance of a potential lawsuit, the employer needs to have on hand all documentation related to each employee....

Learn the differences between a refinance and reverse mortgage so you can choose the best option for your unique needs. What Are the Differences Between a Reverse Mortgage and a Refinance? If you’d like to refinance your home, you’ll need a decent credit score. While a standard mortgage refinance requires at least 620, you can get away with 580 or even no minimum score if you pursue refinance through a government program....

Siciliano is the author of three books, all of which focus on personal security and identity protection. Today, he owns to consulting firms that offer clients expert training, as well as multiple products and services that help people combat cybercrime and financial fraud in all transactions. Siciliano is also a board member for the Identity Theft Resource Center, ZafeSoft, Knowem, and Biometric Siganture-ID. Siciliano’s media credentials reach a variety of mediums....

Roth 401(k)s and IRAs are alternatives to traditional 401(k)s and IRAs, which provide a tax deduction on contributions instead of allowing tax-free withdrawals. Roth 401(k)s and Roth IRAs both let you contribute money after you’ve paid taxes on it, so you can later withdraw the money, plus any earnings, tax free in retirement. What’s the Difference Between a Roth 401(k) and a Roth IRA? Both Roth IRAs and Roth 401(k) plans allow for after-tax contributions, but the retirement offerings have some big differences....

IRS rules dictate that you can’t just let your money sit in your retirement accounts indefinitely without eventually withdrawing that money when you retire. The IRS says that you must begin taking required minimum distributions (RMDs) from accounts by a certain age if you’ve received certain tax breaks. You’ll pay a steep penalty otherwise.Knowing how to satisfy RMD rules can help you choose the right account for your financial needs in retirement....

A Roth IRA rollover involves moving retirement funds from one account to another, such as rolling 401(k) funds into a Roth IRA account. A Roth IRA conversion, however, involves moving funds from what are often pretax accounts such as a traditional 401(k) or IRA into a Roth IRA, the latter of which provides tax-free withdrawals. To make this switch, you need to pay taxes on the conversion. Learn more about what distinguishes a Roth IRA rollover from a Roth IRA conversion, what the advantages are to each, and the steps you need to take to complete them....

In this article, we’ll look at what makes an employee salaried or hourly and how to pay these employees correctly. We will also look at the terms “exempt” and “non-exempt” as they refer to salaried employees. What Determines if an Employee is Salaried or Hourly The distinction between salaried and hourly employees is based on the type of work done by these employees and their status as being exempt or not exempt from overtime....

Biden administration officials, lawmakers, and central bankers have frequently brought up crypto in recent days, worrying that it could hinder efforts by America and its allies to punish Russia economically for its unprovoked invasion.For example, in his testimony to the House Committee on Financial Services Wednesday, Federal Reserve Chair Jerome Powell said the Ukraine war underscores the need for the government to regulate the crypto sector. “We have this burgeoning industry which has many, many parts to it, and there isn’t in place the kind of regulatory framework that needs to be there,” Powell said....

Below, we’ll discuss what Boots to Business is; how it works; who qualifies for it; provide details on the Boots to Business Reboot course; and answer some frequently asked questions about the program. What Is Boots to Business? Boots to Business is a free education and training course administered by the SBA as a component of the Department of Defense’s Transition Assistance Program (TAP). Its purpose is to help provide transitioning service members and their spouses with the business knowledge necessary to pursue entrepreneurship in their shift to civilian life....

Who Qualifies for Schedule R? Schedule R (Form 1040) can help you figure the credit for the elderly or the disabled. To qualify, you must be a U.S. citizen or resident alien who: Reached age 65 before the last day of the tax year, orWas under age 65 at the end of the tax year and meet all three of these requirements: The Disability Requirement The IRS defines you as permanently and totally disabled if you meet several requirements....

Collateral refers to the assets that are offered to guarantee the loan, such as valuable property owned by the applicant. With the use of collateral, the property can be seized if the borrower is unable to pay the loan. Getting approved for a business loan can essentially put property at risk, so it’s important to understand the differences between secured and unsecured business loans and how they work. What’s the Difference Between Secured and Unsecured Business Loans?...

In most cases, the longer you agree to leave your money in the CD, the higher return you can earn. However, you often can’t access the money in the CD before the maturity date without paying a penalty. Learn more about how to decide if a short-, medium-, or long-term CD is best for you. While opinions vary from one bank or financial institution to the next on the definition of short-, medium-, and long-term CDs, we’ve broken their terms down as follows....

What Is a Patio Home? Patio homes should not be confused with houses that simply have a patio. The term “patio home” speaks to a specific style of real estate, not to any single outdoor feature. Other common terms for this type of home are “carriage homes” or “garden homes.” What defines a patio home can vary greatly, but for the most part, it is a smaller home with a compact yard and lot size....

A few annuity strategies exist that may address your future RMD issue. Knowing all of your options lets you choose the right RMD strategy for you. Required Minimum Distribution Required Minimum Distribution (RMD) is the amount of money you must remove from a traditional IRA, SEP IRA, or other qualified accounts when you reach the age of 72. The previous age for RMDs was 70½, but that was increased in 2019 with the passing of the Setting Every Community Up for Retirement Enhancement Act (SECURE Act)....

A common misconception about SPIAs is that if you own one and then die early in the contract the evil annuity company keeps that money and this is the reason they have the big buildings. What people are referring to is an SPIA that is structured as “Life Only.” However, there are over 15 different ways to contractually structure an SPIA payout and “Life Only” is just one of them....

Take advantage of the spring cleaning season by revisiting your financial habits and creating a solid plan that will set you up for long-term financial success. In this guide, you’ll learn how to do that. Sweep Out Old Spending Habits The spring is a great time to get rid of things that no longer serve you, and your bad spending habits are no exception. Take this time to look over your spending and determine bad habits that are detrimental to your finances....

While consumers’ overall debt balances increased by $1 trillion in 2021—more than they have in any year since 2007—the share of loans that were 90 days or more delinquent in the final quarter of the year was smaller than it’s been in any quarter going back to at least 2003, the Federal Reserve Bank of New York’s quarterly report on consumer credit showed this week. Yes, debt from mortgages, car loans, and credit cards increased as buyers absorbed rising costs (especially for houses and cars), but higher savings rates are reassuring to economists, who say the country is in relatively strong shape to handle that debt....

One way to offset this financial burden in the United States is through taking advantage of a variety of deductibles and other tax benefits. Let’s learn how homeownership benefits you passively, through something called imputed rent, as well as actively when you choose to itemize tax deductions in order to deduct various homeownership expenses. Understanding these benefits can help you accurately estimate how much of a tax advantage owning a home can provide....

The money isn’t subject to income tax because it’s a loan advance, not income. The lender will eventually get the money back. But there can be some other tax implications when obtaining a reverse mortgage. Reverse Mortgage Income Isn’t Taxed You can take payment from a reverse mortgage in a few ways: in a lump sum, in incremental payments, or in combination. However you choose to take it, the money isn’t taxable because it’s not income, as mentioned....

Types of Earned Income Earned income is what you earn from working or from disability payments. It includes: Wages Salaries Tips Net earnings from self-employment Union strike benefits Long-term disability benefits Nontaxable combat pay if you elect to have it treated as earned income Why Earned Income Is Important You must generally have earned income to make traditional IRA or Roth IRA contributions. The exception is a spousal IRA. You can contribute to this type of IRA on behalf of a non-working spouse if you have sufficient earned income to cover contributions to both....