If your auto insurance company is asking you to pay excessive money and you think that you have no other option than paying the insurance company than you are wrong. Well there is nothing wrong in continuing with the same provider as long as you are satisfied and the provider meets your requirement. If not than you have all the rights and option to move to a different provider with whom you would feel safe and satisfied.
If you are not satisfied or annoyed regarding your premium in that case you should immediately make an enquiry and question your company about the rising premium, in that case you will find that the rising premium is not actually affecting you which sometimes can be quiet intolerable. So in order to avoid intolerance you may make a decision say either by asking for a rebate or you can change your company.
When you have decided that you are buying auto insurance from a different insurance company, it would not be a bad idea to move to a different insurance provider, provided you have compared the quotation more than once with the other.
The motive of changing the insurance provider is that you want to save money as much as you can. Comparatively there is nothing to be surprised if you find out that there are various companies offering you the auto insurance deal at a lower price.
If there is a rise in your car insurance premium, then it is not compulsory to pay it. However the decision is yours what you want to do? Some people will stick with the same provider and others will make a move to for a good cause. I guess nobody likes increase in price, so people would love to change the insurance provider in order to save a huge amount of money in the long run.
View the original article here
Saturday, April 9, 2011
Friday, April 8, 2011
5 simple rules for investing in an IRA
Investing for retirement doesn't have to be complicated. One of the simplest and most effective approaches is to set aside money each year in an IRA, which offers tax advantages on retirement savings so you can potentially accumulate more money over time.
Here are 5 simple rules for managing your IRA assets:
How do I open a new IRA®?
Opening an IRA online is easy. In just a few minutes, your new IRA can be ready to go to work helping you meet your retirement investing goals. So why wait?
Start saving in a new IRA today.
The biggest mistake you can make with an IRA is not to contribute. For the 2010 and 2011 tax years, the maximum annual contribution amount is $5,000 if you're under age 50, or $6,000 if you're 50 or older. (If you earned less than these amounts, your contribution limit would be equal to your earned income for the year.) These limits apply to your combined contributions to all IRAs you hold. If you're married, your spouse can make an IRA contribution too, even if he or she doesn't have earned income.
And just because the calendar has flipped to 2011 doesn't mean you can't make a contribution for the 2010 tax year. You have until April 18, 2011, to do so, and you can go ahead and make a contribution for 2011 as well. Just be sure to specify the tax year for which you're contributing.
Choosing the right type of IRA hinges on the question of when you want to pay taxes—now or later.
With a traditional IRA, your contributions may be tax-deductible if you meet certain eligibility requirements.
Your earnings can then grow tax-deferred until you begin taking withdrawals, at which point you'd be taxed at whatever rate you're subject to at the time (which could be higher or lower than your current rate). With a Roth IRA you're contributing after-tax money, so you don't get an immediate tax deduction, but your earnings grow tax-free, assuming they meet certain requirements.
For many investors, the appeal of a Roth IRA is obvious: tax-free growth, no lifetime requirements for required minimum distributions (RMDs), and the opportunity for tax diversification. This comparison chart can help you decide.
If you can't contribute to a Roth IRA because your income exceeds the allowable limit, you may be able to take advantage of what's sometimes known as a "back door" Roth IRA.
It works like this: You fund a nondeductible traditional IRA and then immediately convert it to a Roth. You're essentially making a contribution to a Roth IRA, and there may be little or no tax impact from the conversion.
But be careful: This strategy works best if you don't have other traditional IRA assets, because federal law requires you to aggregate all your IRA assets (regardless of which assets you actually convert) for tax purposes. (For example, if you have $50,000 in total IRA assets and you want to convert the $10,000 in your nondeductible IRA, your conversion amount will be treated as though four-fifths of it—$7,500—comes from your pre-tax assets, and that amount will therefore be taxable.) So, if you have significant IRA assets that were funded with pre-tax contributions (from an employer plan rollover, for example), you'll want to consider the potential tax bite before taking any action.
For most investors, a nondeductible IRA no longer makes much sense as part of a long-term retirement plan. Although such an account may grow tax-deferred, contributions aren't deductible, and any earnings will ultimately be subject to taxation when you're making withdrawals.
As long as you're eligible to contribute, a Roth IRA is probably a much better choice. But if high income keeps you from contributing to a Roth and a back door Roth strategy (see item 3 above) isn't an option, consider tax-efficient investments in nonretirement accounts as an alternative to a nondeductible traditional IRA.
Market performance isn't the only thing that affects your IRA's bottom line. Investment costs can have a significant "drag" on your long-term retirement savings. And unlike market returns, which can be positive one year and negative the next, operating expenses keep eating away at your account in good years and bad.
That's why it's important to keep an eye on what you're paying your investment provider. Here's a very rough guideline: If your IRA costs you 1% of assets per year over 30 years, you'll end up "giving away" nearly 30% of what you would have had if those fees hadn't been deducted. (Learn more about why costs matter.)
View the original article here
Here are 5 simple rules for managing your IRA assets:
How do I open a new IRA®?
Opening an IRA online is easy. In just a few minutes, your new IRA can be ready to go to work helping you meet your retirement investing goals. So why wait?
Start saving in a new IRA today.
The biggest mistake you can make with an IRA is not to contribute. For the 2010 and 2011 tax years, the maximum annual contribution amount is $5,000 if you're under age 50, or $6,000 if you're 50 or older. (If you earned less than these amounts, your contribution limit would be equal to your earned income for the year.) These limits apply to your combined contributions to all IRAs you hold. If you're married, your spouse can make an IRA contribution too, even if he or she doesn't have earned income.
And just because the calendar has flipped to 2011 doesn't mean you can't make a contribution for the 2010 tax year. You have until April 18, 2011, to do so, and you can go ahead and make a contribution for 2011 as well. Just be sure to specify the tax year for which you're contributing.
Choosing the right type of IRA hinges on the question of when you want to pay taxes—now or later.
With a traditional IRA, your contributions may be tax-deductible if you meet certain eligibility requirements.
Your earnings can then grow tax-deferred until you begin taking withdrawals, at which point you'd be taxed at whatever rate you're subject to at the time (which could be higher or lower than your current rate). With a Roth IRA you're contributing after-tax money, so you don't get an immediate tax deduction, but your earnings grow tax-free, assuming they meet certain requirements.
For many investors, the appeal of a Roth IRA is obvious: tax-free growth, no lifetime requirements for required minimum distributions (RMDs), and the opportunity for tax diversification. This comparison chart can help you decide.
If you can't contribute to a Roth IRA because your income exceeds the allowable limit, you may be able to take advantage of what's sometimes known as a "back door" Roth IRA.
It works like this: You fund a nondeductible traditional IRA and then immediately convert it to a Roth. You're essentially making a contribution to a Roth IRA, and there may be little or no tax impact from the conversion.
But be careful: This strategy works best if you don't have other traditional IRA assets, because federal law requires you to aggregate all your IRA assets (regardless of which assets you actually convert) for tax purposes. (For example, if you have $50,000 in total IRA assets and you want to convert the $10,000 in your nondeductible IRA, your conversion amount will be treated as though four-fifths of it—$7,500—comes from your pre-tax assets, and that amount will therefore be taxable.) So, if you have significant IRA assets that were funded with pre-tax contributions (from an employer plan rollover, for example), you'll want to consider the potential tax bite before taking any action.
For most investors, a nondeductible IRA no longer makes much sense as part of a long-term retirement plan. Although such an account may grow tax-deferred, contributions aren't deductible, and any earnings will ultimately be subject to taxation when you're making withdrawals.
As long as you're eligible to contribute, a Roth IRA is probably a much better choice. But if high income keeps you from contributing to a Roth and a back door Roth strategy (see item 3 above) isn't an option, consider tax-efficient investments in nonretirement accounts as an alternative to a nondeductible traditional IRA.
Market performance isn't the only thing that affects your IRA's bottom line. Investment costs can have a significant "drag" on your long-term retirement savings. And unlike market returns, which can be positive one year and negative the next, operating expenses keep eating away at your account in good years and bad.
That's why it's important to keep an eye on what you're paying your investment provider. Here's a very rough guideline: If your IRA costs you 1% of assets per year over 30 years, you'll end up "giving away" nearly 30% of what you would have had if those fees hadn't been deducted. (Learn more about why costs matter.)
View the original article here
Thursday, April 7, 2011
6 timeless tips for successful investing
Whether we're experiencing a so-called flash crash or a raging bull, the markets can be turbulent. But no matter what's happening in the financial world, these enduring tips can help you achieve investment success.
Review your financial plan. It's important to revisit your financial plan from time to time to ensure your goals still align with your risk tolerance and time horizon. This is especially important if you've gotten married, bought a home, or made other significant life changes. Don't yet have a plan? Get started by learning the basics of financial planning.
Stick to your asset allocation. Keep your mix of stocks, bonds, and cash aligned with your investing goals. If the market's ups and downs have caused your allocation to shift, be sure to rebalance your portfolio.
Keep it simple. Rather than trying to beat the market, consider investing in broad-based index funds, which seek to track the performance of a market benchmark. It's an easy way to diversify your portfolio and keep your investing costs low. Low-cost investing lets you keep more of your returns—and over time that could translate into a net performance edge.
Control your taxes. Taxes can nibble away at your long-term investment returns, so learn how to be a tax-savvy investor and you can make the bite less painful.
Save as much as possible for retirement. Be sure to take full advantage of your retirement savings options. If you own an IRA, remember that you have until April 18, 2011, to make a contribution for 2010. And if you're age 50 or older, you can save up to $6,000 in your IRA for the 2010 tax year—that's $1,000 more than the standard contribution limit.
Manage your debt. Don't let excessive debt control you. Creating a budget based on what you have—not what you can borrow—and spending less can help you take control of your debt.
Follow these investing basics and you'll be better prepared to weather any market condition.
View the original article here
Review your financial plan. It's important to revisit your financial plan from time to time to ensure your goals still align with your risk tolerance and time horizon. This is especially important if you've gotten married, bought a home, or made other significant life changes. Don't yet have a plan? Get started by learning the basics of financial planning.
Stick to your asset allocation. Keep your mix of stocks, bonds, and cash aligned with your investing goals. If the market's ups and downs have caused your allocation to shift, be sure to rebalance your portfolio.
Keep it simple. Rather than trying to beat the market, consider investing in broad-based index funds, which seek to track the performance of a market benchmark. It's an easy way to diversify your portfolio and keep your investing costs low. Low-cost investing lets you keep more of your returns—and over time that could translate into a net performance edge.
Control your taxes. Taxes can nibble away at your long-term investment returns, so learn how to be a tax-savvy investor and you can make the bite less painful.
Save as much as possible for retirement. Be sure to take full advantage of your retirement savings options. If you own an IRA, remember that you have until April 18, 2011, to make a contribution for 2010. And if you're age 50 or older, you can save up to $6,000 in your IRA for the 2010 tax year—that's $1,000 more than the standard contribution limit.
Manage your debt. Don't let excessive debt control you. Creating a budget based on what you have—not what you can borrow—and spending less can help you take control of your debt.
Follow these investing basics and you'll be better prepared to weather any market condition.
View the original article here
Wednesday, April 6, 2011
Diversification has served bond investors well
If you were invested in the securities represented by the broadly diversified Barclays Capital U.S. Aggregate Bond Index during the past four years, you avoided some of the volatility experienced by the individual sectors that make up the index.
As the accompanying chart shows, the last four years have seen some fairly wild differences in returns for the four key sectors that make up the U.S. Aggregate Bond Index—Treasuries, government-related securities, corporate securities, and securitized bonds (generally, mortgage-backed and asset-backed securities).
But over those years, the return of the broad-based index (shown by the horizontal line) was relatively stable. In 2008, the performance of Treasuries helped to cushion the effects of the decline of corporate bonds. In 2009, things reversed, and the surge in corporates offset the decline of Treasuries.
"The lesson of the last four years is that broad diversification—whether in equities or in bonds—continues to be a valuable risk-management tool for investors," said Donald G. Bennyhoff, a senior investment analyst with Vanguard Investment Strategy Group. "Investors who tried to sidestep expected problems by forecasting changes in interest rates, inflation, or credit quality found it very hard to execute that strategy profitably."
In fact, Mr. Bennyhoff noted, "if you had allowed headlines to influence your investment choices, you might have avoided corporate bonds entirely prior to their 2009 rally. For most investors in taxable bonds, we believe that the best way to gain exposure to the asset class is by owning the total bond market though a fund or ETF."
View the original article here
As the accompanying chart shows, the last four years have seen some fairly wild differences in returns for the four key sectors that make up the U.S. Aggregate Bond Index—Treasuries, government-related securities, corporate securities, and securitized bonds (generally, mortgage-backed and asset-backed securities).
But over those years, the return of the broad-based index (shown by the horizontal line) was relatively stable. In 2008, the performance of Treasuries helped to cushion the effects of the decline of corporate bonds. In 2009, things reversed, and the surge in corporates offset the decline of Treasuries.
"The lesson of the last four years is that broad diversification—whether in equities or in bonds—continues to be a valuable risk-management tool for investors," said Donald G. Bennyhoff, a senior investment analyst with Vanguard Investment Strategy Group. "Investors who tried to sidestep expected problems by forecasting changes in interest rates, inflation, or credit quality found it very hard to execute that strategy profitably."
In fact, Mr. Bennyhoff noted, "if you had allowed headlines to influence your investment choices, you might have avoided corporate bonds entirely prior to their 2009 rally. For most investors in taxable bonds, we believe that the best way to gain exposure to the asset class is by owning the total bond market though a fund or ETF."
View the original article here
Tuesday, April 5, 2011
Get to know some RMD basics
You've probably spent a good chunk of your life working and setting aside money for retirement through IRAs and tax-advantaged employer-sponsored plans—such as SEP-IRAs, SIMPLE IRAs, 401(k)s, 403(b)(7)s, or qualified plans. These types of investments allow you to postpone paying income taxes on such assets until you reach age 70½.
At that point, the IRS requires you to start drawing down those assets and paying the appropriate taxes by taking required minimum distributions (RMDs). There are two important exceptions. First, any Roth IRA you hold is exempt from RMD regulations during your lifetime. Second, if you're over 70½ but still working, you may not be required to begin taking RMDs from your employer's plan until you stop working (unless you're a 5% owner).
The IRS penalty for failure to take your proper RMD amount by December 31 each year is stiff—50% of the amount not taken. For example, if you were required to withdraw $1,000 from your IRA but failed to do so, the penalty would be $500. RMDs are generally taxed as ordinary income and reported on IRS Form 1099-R.
You can calculate how much you need to withdraw from your traditional IRAs and employer plans each year. Take your year-end account balance for each IRA or employer-sponsored plan account and divide the balance by your applicable life expectancy divisor—a number that you can get from IRS Publication 590 (Individual Retirement Arrangements). If you have several IRAs, you must calculate your RMD separately for each; however, you can aggregate the total RMD amounts and take a distribution from one or more of the IRAs.
Note that you must take RMDs from IRAs and employer plans independently; you can't aggregate the required amount and take a distribution from only one account type. For more about RMDs from your employer plan, contact your plan administrator.
A reminder: If you're planning to roll over assets from your employer plan or convert from a traditional IRA to a Roth IRA, you must take your RMD first.
If you turn 70½ in a given year, you may opt to delay your first RMD until April 1 of the following calendar year. If you choose to hold off, you'll then need to take your second required distribution by December 31 of the same year. You'll also have two tax liabilities—one for the prior-year amount and one for the current-year amount withdrawn.
For example, suppose you turned 70 on November 15, 2010. That means you'll be 70½ on May 15, 2011. You may take your 2011 RMD by December 31, 2011, or wait until April 1, 2012. If you defer, you must take a second distribution—for 2012—by December 31, 2012.
View the original article here
At that point, the IRS requires you to start drawing down those assets and paying the appropriate taxes by taking required minimum distributions (RMDs). There are two important exceptions. First, any Roth IRA you hold is exempt from RMD regulations during your lifetime. Second, if you're over 70½ but still working, you may not be required to begin taking RMDs from your employer's plan until you stop working (unless you're a 5% owner).
The IRS penalty for failure to take your proper RMD amount by December 31 each year is stiff—50% of the amount not taken. For example, if you were required to withdraw $1,000 from your IRA but failed to do so, the penalty would be $500. RMDs are generally taxed as ordinary income and reported on IRS Form 1099-R.
You can calculate how much you need to withdraw from your traditional IRAs and employer plans each year. Take your year-end account balance for each IRA or employer-sponsored plan account and divide the balance by your applicable life expectancy divisor—a number that you can get from IRS Publication 590 (Individual Retirement Arrangements). If you have several IRAs, you must calculate your RMD separately for each; however, you can aggregate the total RMD amounts and take a distribution from one or more of the IRAs.
Note that you must take RMDs from IRAs and employer plans independently; you can't aggregate the required amount and take a distribution from only one account type. For more about RMDs from your employer plan, contact your plan administrator.
A reminder: If you're planning to roll over assets from your employer plan or convert from a traditional IRA to a Roth IRA, you must take your RMD first.
If you turn 70½ in a given year, you may opt to delay your first RMD until April 1 of the following calendar year. If you choose to hold off, you'll then need to take your second required distribution by December 31 of the same year. You'll also have two tax liabilities—one for the prior-year amount and one for the current-year amount withdrawn.
For example, suppose you turned 70 on November 15, 2010. That means you'll be 70½ on May 15, 2011. You may take your 2011 RMD by December 31, 2011, or wait until April 1, 2012. If you defer, you must take a second distribution—for 2012—by December 31, 2012.
View the original article here
How to protect your savings
Defined benefit ("DB") retirement plans—often referred to as pension plans—are not as common as they once were. And some plan sponsors are expected to terminate their plans in the near future.
If this happens to your pension, you'll probably be offered a lump-sum payout from your plan sponsor as an alternative to the plan's annuity benefit. And you'll face an important decision: What should you do with the money?
If you find yourself in this situation—whether because your pension plan was terminated or for a different reason, such as retirement or changing jobs—you generally have three options:
Put the money to work. To keep your savings earmarked for retirement, you could invest your pension assets through a rollover into a traditional IRA or a 401(k) plan sponsored by your employer. Either approach can keep your money working tax-deferred through a variety of investment options. This option can be particularly beneficial if you're in the early stages of your working career. (See "Rollovers made easy" below for more information.)
Select an annuity. An income annuity may be an attractive option if you're looking for cash flow in retirement and you're concerned about outliving your savings. But annuities aren't for everyone, and the decision to invest in an annuity is generally irreversible. Your existing DB plan will probably offer annuity options, which usually require you to take your entire distribution as an annuity. Another option would be to consider rolling your distribution into an IRA and allocating a portion of your funds toward the purchase of an annuity. Learn more about lower-cost annuity options available through Vanguard.
Take a taxable distribution. It may be tempting to receive your money immediately. But be warned: A lump-sum payout that isn't rolled over will be taxed as income. If you spend it now, it'll reduce your income in retirement. Even if you invest it in a nonretirement account, it will no longer grow tax-free.
"There are advantages and disadvantages to each approach," said Evan Inglis, chief actuary in Vanguard's Strategic Retirement Consulting group. "However, the tax consequences of taking an immediate distribution mean that it's usually not advisable. That's why we generally suggest that pension plan participants roll over their assets or select an annuity."
Performing a rollover couldn't be simpler or more straightforward. At Vanguard, you'll get hands-on guidance from an experienced rollover specialist who can help you get started, answer your questions, and offer ongoing support for your financial goals.
View the original article here
If this happens to your pension, you'll probably be offered a lump-sum payout from your plan sponsor as an alternative to the plan's annuity benefit. And you'll face an important decision: What should you do with the money?
If you find yourself in this situation—whether because your pension plan was terminated or for a different reason, such as retirement or changing jobs—you generally have three options:
Put the money to work. To keep your savings earmarked for retirement, you could invest your pension assets through a rollover into a traditional IRA or a 401(k) plan sponsored by your employer. Either approach can keep your money working tax-deferred through a variety of investment options. This option can be particularly beneficial if you're in the early stages of your working career. (See "Rollovers made easy" below for more information.)
Select an annuity. An income annuity may be an attractive option if you're looking for cash flow in retirement and you're concerned about outliving your savings. But annuities aren't for everyone, and the decision to invest in an annuity is generally irreversible. Your existing DB plan will probably offer annuity options, which usually require you to take your entire distribution as an annuity. Another option would be to consider rolling your distribution into an IRA and allocating a portion of your funds toward the purchase of an annuity. Learn more about lower-cost annuity options available through Vanguard.
Take a taxable distribution. It may be tempting to receive your money immediately. But be warned: A lump-sum payout that isn't rolled over will be taxed as income. If you spend it now, it'll reduce your income in retirement. Even if you invest it in a nonretirement account, it will no longer grow tax-free.
"There are advantages and disadvantages to each approach," said Evan Inglis, chief actuary in Vanguard's Strategic Retirement Consulting group. "However, the tax consequences of taking an immediate distribution mean that it's usually not advisable. That's why we generally suggest that pension plan participants roll over their assets or select an annuity."
Performing a rollover couldn't be simpler or more straightforward. At Vanguard, you'll get hands-on guidance from an experienced rollover specialist who can help you get started, answer your questions, and offer ongoing support for your financial goals.
View the original article here
Monday, April 4, 2011
Paying too much for your annuity? Here's an easy way to find out
A variable annuity can be a smart way to build extra savings for retirement. That's because the annuity lets you put more money away than other tax-favored retirement savings accounts, such as IRAs or 401(k)s.
As you've probably heard, variable annuities also can have their downsides—many of them have high costs that eat away at your investment returns. Those costs, which can include commissions, investment expenses, and withdrawal penalties, can offset the benefit of additional tax-advantaged savings that you get with an annuity. And it can be tough to figure out how much you're really paying because of the complicated terms of your annuity contract.
Vanguard offers one of the lowest-cost annuities in the industry.* If you own a variable annuity outside of Vanguard, you've now got a quick way to cut through the complexity and find out if you may be paying too much. Answer 3 simple questions and our new online calculator will show you how your current annuity's annual costs compare with those of the Vanguard Variable Annuity.
"We're excited to offer a simple-to-use calculator with cost information for nearly 1,500 annuities," said Tim Holmes, who leads Vanguard Annuity and Insurance Services. "In less than a minute, you can enter information about your current annuity to see how much you might save with the Vanguard Variable Annuity. Why not make sure you're saving all you can for retirement?"
What you can do if you think you're paying too much
You may be able to pay a lot less by making a tax-free transfer (called a 1035 exchange) to a Vanguard Variable Annuity. The Vanguard Variable Annuity's average annual costs are about 75% less than the industry average.*
Before you transfer your annuity, keep in mind that your current provider may impose withdrawal penalties, known as surrender charges.
View the original article here
As you've probably heard, variable annuities also can have their downsides—many of them have high costs that eat away at your investment returns. Those costs, which can include commissions, investment expenses, and withdrawal penalties, can offset the benefit of additional tax-advantaged savings that you get with an annuity. And it can be tough to figure out how much you're really paying because of the complicated terms of your annuity contract.
Vanguard offers one of the lowest-cost annuities in the industry.* If you own a variable annuity outside of Vanguard, you've now got a quick way to cut through the complexity and find out if you may be paying too much. Answer 3 simple questions and our new online calculator will show you how your current annuity's annual costs compare with those of the Vanguard Variable Annuity.
"We're excited to offer a simple-to-use calculator with cost information for nearly 1,500 annuities," said Tim Holmes, who leads Vanguard Annuity and Insurance Services. "In less than a minute, you can enter information about your current annuity to see how much you might save with the Vanguard Variable Annuity. Why not make sure you're saving all you can for retirement?"
What you can do if you think you're paying too much
You may be able to pay a lot less by making a tax-free transfer (called a 1035 exchange) to a Vanguard Variable Annuity. The Vanguard Variable Annuity's average annual costs are about 75% less than the industry average.*
Before you transfer your annuity, keep in mind that your current provider may impose withdrawal penalties, known as surrender charges.
View the original article here
Friday, April 1, 2011
Check Your Tax Withholding
Are you doing your taxes and surprised at the amount you owe or will be getting back as a refund? A large refund or tax bill is a sign you didn't have the correct amount withheld from your paycheck. One of the easiest things you can do to maximize how much you bring home with each paycheck and avoid paying Uncle Sam too much is to adjust your?tax withholding. ?Sure, it's always nice to get a refund check in the spring, but you're really just giving the IRS an interest-free loan when you could have been making use of those extra dollars. That could mean more money in your pocket each month to put towards everyday expenses, pay down debt, or tuck away for retirement.
Having proper withholding isn't just for controlling refunds, but it is even more important if you find yourself on the other side of the coin and need to write a check to the IRS come April. Nobody likes shelling out more money for taxes, so having your withholding set up appropriately can prevent this. It is a fine line to walk in order to put as much money in your pocket without having to pay up at the end of the year. Luckily, the IRS can help you determine how to set your withholding. Check out the IRS withholding calculator.
View the original article here
Having proper withholding isn't just for controlling refunds, but it is even more important if you find yourself on the other side of the coin and need to write a check to the IRS come April. Nobody likes shelling out more money for taxes, so having your withholding set up appropriately can prevent this. It is a fine line to walk in order to put as much money in your pocket without having to pay up at the end of the year. Luckily, the IRS can help you determine how to set your withholding. Check out the IRS withholding calculator.
View the original article here
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