How much can I save in my small biz retirement plan?
By Karin Price Mueller | NJMoneyHelp.com for NJ.com Q. I am a sole proprietor and want to add to my SEP-IRA. Can I take after-tax funds from my savings and use that to make a contribution? What are the limits? — Working hard A. It’s great to see you want to set money aside for the future. A SEP-IRA is a pension plan that self-employed people and small businesses can open for themselves and their employees. If the business owner wants to take a tax deduction for their own SEP
How does the exit tax work if you are getting divorced?
By Karin Price Mueller | NJMoneyHelp.com for NJ.com Q. How does the exit tax work if you are getting divorced? I will temporarily be leaving the state to live with my parents. I will travel back and forth after the sale of the house, living in both New Jersey and another state. My ex will stay in New Jersey. — Moving around A. The so-called exit tax isn’t really an extra tax, but it’s an estimated tax payment based on the sale of a home. You say you will be traveling back and
Will having homes in N.J. and Florida be a smart move?
By Karin Price Mueller | NJMoneyHelp.com for NJ.com Q. I’m a New Jersey homeowner considering selling the house and moving into an apartment. We don’t want the maintenance anymore. The profit from the home sale will allow us to purchase a condo in Florida, which will not be used as a rental. Our primary residence would continue to be in New Jersey. I’m still working and not planning to retire in the near future but my spouse is retired. We’re not sure if this is financially s
How are withheld taxes credited for COVID retirement withdrawals?
By Karin Price Mueller | NJMoneyHelp.com for NJ.com Q. A person took $100,000 from his 401(k) plan due to his wife’s COVID problems and he had had $10,000 withheld for federal tax. He wants to spread the distribution out over three years and has no intention of paying it back. After allocating $33,333 per year on his income, is he permitted to take the $10,000 as a full payment for tax year 2020? — Confused A. The CARES Act became law in March 2020. It was meant to help peopl