SmartReads

Giving someone a large cash gift can sound like it comes with a large tax bill. Usually, it doesn’t. Federal rules first apply an annual exclusion, then a much larger lifetime exemption, meaning many gifts create a reporting requirement long before they create gift tax. However, what you give, and how you give it, can… read more…

A mega backdoor Roth 401(k) can give high earners a way to save even more for retirement. This strategy allows them to put substantially more money into Roth savings than standard contribution limits normally allow. The strategy uses after-tax 401(k) contributions that are later converted to Roth, potentially creating years or decades of tax-free growth.… read more…

How you title a property affects who controls it, who inherits it, and whether it has to pass through probate. You can typically choose either tenancy in common or joint tenancy with rights of survivorship. These may sound similar, but the distinctions can have major consequences for co-owners, heirs, and their long-term estate plans. You… read more…

Dividend-paying stocks can create a recurring stream of investment income without requiring you to sell shares. But a high dividend yield alone does not necessarily make a stock a strong income investment. Before investing, it can be important to examine the company’s financial strength, dividend history and ability to generate enough earnings and cash flow… read more…