Welcome to The Incredible Penny, a blog about personal finance.
It's not what you earn, it's what you save. Discover how you can change your financial life one penny at a time.
How to estimate your TAXES when you are paid HOURLY
https://www.adp.com/resources/tools/calculators/hourly-paycheck-calculator.aspx
Should You Stop Funding Your 529 College Savings Plan for Tax Savings?
You are about to read a strategy that may reduce your adjusted gross income and save you thousands in taxes. I strongly urge you to read the entire blog and think long and hard about how you can work it into your 529 plan savings strategy. I’m a big believer that when there is a…
Solo 401k Contribution Deadlines
2021 Solo 401k Contribution Deadlines Tax Entity Type 2021 Contribution Deadline 2021 Extension Contribution Deadline Sole Proprietor (Schedule C) April 15th, 2022 October 17th, 2022 LLC (Schedule C) April 15th, 2022 October 17th, 2022 Partnership March 15th, 2022 September 15th, 2022 S-Corporation (Employer Contribution) March 15th, 2022 September 15th, 2022 S-Corporation (Employee Contribution) January 31st,…
Roth IRA MAJOR UPDATE proposed for MORE TAX-FREE contributions
Here is the proposed bill Senators Burr, Casey Introduce College Savings Recovery Act
Backdoor Roth IRA Pro Rata Rule Explained
The Pro Rata Rule is required when you convert a traditional retirement plan, whole or in part, to a Roth IRA and the traditional IRA has both aftertax and pretax money. The premise of the pro rata rule is to prevent higher-income earners from taking advantage of the backdoor Roth conversion without incurring additional taxes….
Roth IRA Contribution & Income Limits 2022
Roth IRA + Traditional IRA Contribution Limits 2022 IRA + Catchup Contribution 2021 2022 Roth IRA $6,000 $6,000 Roth IRA Age 50+ $7,000 $7,000 Traditional IRA $6,000 $6,000 Traditional IRA Age 50+ $7,000 $7,000 Roth IRA Income Limits Filing Status 2021 Roth IRA Income Range 2022 Roth IRA Income Range Single $125,000-$140,000 $129,000-$144,000 Married Filing…
How to calculate self employment taxes
Self-employment taxes are the employment taxes for someone who is self-employed. They are separate from your state and federal taxes. If you want a quick answer, check line 12 on schedule SE. Continue reading if you want to understand how self-employment taxes work. Table of Contents Full Video Transcript: How to calculate self employment taxes…
Aura Digital Safety App Review | Identity Theft Protection
The Aura digital safety app is so much more than just an app. It protects your digital identity and devices and some parts you probably didn’t realize need protecting. I have updated this post a few times, added more videos on Aura and each time I’m more impressed and feel that much more at ease…
What is reasonable compensation for s-corp owners?
What is reasonable compensation for s corp owners? Section 162 of the tax code states, “a reasonable allowance for salaries or other compensation for personal services actually rendered,” but what does this mean for your s-corp owner compensation? The term you will hear repeatedly when it comes to S-corp owners and compensation is, “reasonable.” The…
Best College Savings Plan
There are several options for college savings plans. The best plans offer flexibility in saving, tax-free growth, and a wide range of investment options. In my opinion, the 529 college savings plans and the Coverdell Education Savings accounts are among the top plans. However, the Coverdell ESA usually offers more investment options than the 529…
Can you do a Roth conversion with stocks?
The Roth conversion can be done in a few different ways. The Roth IRA conversion I’m talking about here is moving stocks, bonds, ETFs, or mutual funds from the traditional IRA to the Roth IRA. While you can move property such as stocks from the traditional IRA to the Roth IRA there are a few…
How to start planning for retirement at age 25
In this post, I’m talking about how to start planning for retirement at age 25. So if you’re starting your retirement planning. We have you covered. And if you’re looking for the basics in retirement planning, you’ve come to the right place. Table of Contents Why Age 25? Age 25 is a starting point. It’s…
Should I own an S-Corp to save taxes?
How many S-Corps should you have? Is one enough? Multiple? Or should you skip the s-corp altogether? I will only focus on the taxes and retirement savings when it comes to the s-corp and not any legal or shareholder benefits. S-Corporations are great for small business taxes, but you need to know how those taxes…