W-2 Employee vs. 1099 Contractor

W-2 Employee vs. 1099 Contractor

Classifying a worker as a W-2 Employee vs. a 1099 Contractor has significant tax and other consequences on both the worker and the business/organization. However, the consequences should not drive the classification determination. Instead the classification should be...
Business vs Hobby

Business vs Hobby

When it comes to earning income from a side gig of any sort you are in one of two worlds: Business Income or Hobby Income. There are advantages and disadvantages to each classification. If you are in the business of fill-in-the-blank, you are able to deduct all...
Backdoor Roth IRA?

Backdoor Roth IRA?

What is a Backdoor Roth and should I walk through it? If your income is too high to contribute directly to a Roth IRA, you may be a good candidate for using the Backdoor Roth strategy. There are some trap doors though! To learn more, start by reading this...
Basic Financial Plan

Basic Financial Plan

If you can faithfully do these four things over a long period of time, you will have done your part to put yourself in a good financial position:   Take on no personal debt (other than a reasonable home mortgage). This includes paying cash for vehicles and paying...
Traditional IRA or Roth IRA?

Traditional IRA or Roth IRA?

Traditional: Tax deduction today, investment grows tax-deferred, distributions at retirement come out as taxable income. Roth: No tax deduction today, investment grows tax-free, distributions at retirement come out completely tax-free. General Rule: The younger you...
Retirement Savings Contributions Credit

Retirement Savings Contributions Credit

Did you know you can get a tax deduction and/or tax credit for making a retirement plan contribution? Contributions to your Traditional and/or Roth IRAs can generally be made up until the tax filing deadline for the prior tax year. You can read more about the...