Taxable brokerage accounts You need a high-deductible health insurance plan to open an HSA. That’s one with a deductible of $1,400 or more for individuals or $2,800 or more for families. The contribution limits for HSAs aren’t much better than IRAs. You may contribute up to $3,600 in 2021 if you have an individual insurance plan or $7,200 if you have a family plan. But that little extra in conjunction with your IRA may be enough to help you reach your savings goals.
A taxable brokerage account doesn’t offer the same tax benefits as the accounts listed above, but there are no limits on how much you can contribute, what you can invest in, or when you can take your funds out.
Source buffalonews.com If you hold onto your investments for at least a year before selling, you may also be able to shave a little off your tax bill because then your earnings become subject to long-term capital gains tax. These tax brackets range from 0% to 20%, but whatever yours is, you’ll end up owing less than you would if you had to pay income tax on the same amount.
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