How to Save for Retirement & Receive Credit on Your Taxes

Dear Taxpayers:

It is possible to save for retirement and receive tax credits for it! It is well worth looking into these savings options to receive tax breaks while saving for the future. These retirement savings accounts are called Traditional IRA, and Roth IRA. Contributing to IRA accounts allows you to grow your money tax-free!

To qualify for benefits in both IRA and Roth IRA, you must have work earnings that are higher than the amounts contributed. Someone who is not currently working or has earned less than the contributed amount will not qualify for the credit.

The maximum amounts that can be contributed for a tax credit on both IRA accounts are $5,500 if you are under age 50, and $6,000 if you are over 50 years old. That is the amount that you can contribute from your yearly income, and that qualifies for credits on an IRA and a Roth IRA

On a traditional IRA, the amount added is not only tax-free, but it also lowers your Tax Liability for the year. In a traditional IRA, money remains tax-free as long as it is not withdrawn before retirement age. If you do remove the money before retirement age, you will be liable for taxes. This is because the money went into the account untaxed; penalties will depend on the reasons for removing the money.

Contributing to a Roth IRA allows you to grow your money tax-free! It is different from a 401k because it is more flexible in case you need to withdraw any money before retirement age. This is because funds contributed into a Roth IRA account will have already been taxed, it is the earnings from them that will be tax-free. The earnings from it must remain in the account until retirement age, or they will be subject to tax and penalties.  For more details, see Publication 591-A (2018) https://www.irs.gov/publications/p590a.

Both IRAS can be opened up to April 15th of 2019, for a tax break in 2018 taxes. For more information on calculating your tax benefit contact your tax preparer, investor, or check out the details under https://www.irs.gov/retirement-plans/roth-iras.

Attentively,

The StateChoice Team

Family Motorcycle Insurance Policies on Upward Trend

If you felt there was an increase in the number of motorcycles traveling on the road today, you were correct in your assumption. There’s no better feeling than riding on a bike on the open road. And a bigger upward trend is families getting a motorcycle insurance package together. 

The rise in popularity has been gained due to the median age of motorcycle riders rising from the late 20s to the early 40s. This has help peak the interest of a rider’s siblings, life partner and children to get involved with their passion. The positive of this increase is everyone receiving proper training on how to safely ride a motorcycle. 

The Ease of Learning to Ride a Motorcycle

Too often, newcomers to the motorcycle community fail to realize that maneuvering a manual transmission bike is far more complicated to master than learning on an automobile. Plus, they’re unprepared to handle the speed of the far more popular models, which can accelerate to up to 100 MPH in a blink of an eye. 

Motorcycle insurance agencies like StateChoice in West Hartford, CT believe the learning curve for new riders is greatly enhanced if a family member is an active rider. They can convey how the bike becomes more stable at higher speeds because of the longer wheelbase and larger tires. Motorcycles are very fuel efficient as they average close to 44 mpg, and the newer models can reach up to 85 mpg. Plus, an experienced rider can suggest the proper protective gear to wear as all of this information provides better safety on the road.

How Motorcycle Insurance Policies are Created

The usage of a motorcycle does come into play when choosing an insurance policy. Family group plans work best for the casual weekend rider. The annual mileage number will impact heavily a group’s rate. The more you ride, the higher the premium will become. And if someone in the family plan is using their motorcycle for business purposes, then they become ineligible for the insurance policy. The person in question might be required to purchase a personal business policy. If not, then the entire can enjoy a discount on the family policy rate.