Moving to Las Vegas: Everything You Need to Know

If you’re wanting to move to Sin City, now is the time to do it.

There’s so much culture and diversity to embrace in fabulous Las Vegas. Despite it being known as the “City of Lost Wages,” there are a lot of opportunities when moving to Las Vegas.

The cost of living has stayed fairly low and it isn’t too crowded, especially when compared to other large urban areas. But it might not stay that way forever. Many California residents are packing up and moving here where they can afford a higher lifestyle at a fraction of the price.

So, don’t waste any time deciding if moving to Las Vegas makes sense for you. The city is expanding and you’ll want to take advantage of the growth sooner rather than later. Here’s what you need to know.

las vegas nv

Las Vegas overview

As one of the most famous cities in the world, you’ve probably heard a fair share about Las Vegas. You maybe even visited once or twice. But what you hear about and experience on a vacation is vastly different than living here.

The locals don’t hit the Strip every night and party non-stop. In fact, in many parts of Vegas, you’ll find quiet, family-friendly neighborhoods. Due to the reasonable cost of living, this city is rapidly growing into a desirable destination.

  • Population: 651,319
  • Population density (people per square mile): 4,298.2
  • Median income: $53,575
  • Studio average rent: $778
  • One-bedroom average rent: $1,236
  • Two-bedroom average rent: $1,454
  • Cost of living index: 105.7

las vegas nv

Popular neighborhoods in Las Vegas

Not all of fabulous Las Vegas is lights and excitement. Each neighborhood has its own quirks and perks. Whether you’re a young professional that’s starting out on your own or you’ve got a family, there’s a neighborhood suited just for you.

  • Summerlin: Summerlin has lots of community events like farmers markets and free activities. There’s plenty of shopping and great restaurants and it’s only about a 20-minute drive to the Strip. It’s also one of the safest communities in the city,
  • Downtown: Downtown Las Vegas was big before the Strip came along and stole the show. You’ll find lots of great restaurants and eclectic vintage shops here!
  • Centennial Hills: This suburb is known to have a little more of a “rural” vibe (or at least, as rural as it can get in a big city like Vegas). Many people who own horses choose to live in this area for the ample space it offers. It’s family-friendly and has lots of outdoor spaces like parks and splash pads for kids to enjoy on those hot summer days.
  • Arts District: Hipsters flock to The Arts District to experience the best aspects of the city without the typical over-the-top Las Vegas flair. As its name suggests, it’s full of art, along with fun second-hand and vintage stores. It was even dubbed the “least Vegas neighborhood in Vegas” by The New York Times. So, even though it’s right there near the Strip, it’s a completely different world.
  • North Cheyenne: Located near the Las Vegas airport, North Cheyenne is very convenient for anyone who travels frequently. It’s a quieter part of town and is more of a suburb, but it’s really affordable and reasonably safe in comparison to other parts of Vegas.

The pros of moving to Las Vegas

There’s no doubt that you’ll enjoy living in Las Vegas. While daily life as a resident isn’t quite as fun and exciting as a weekend getaway, there are still plenty of positive aspects of living in the city.

las vegas strip

You’ll never be bored

Much of Las Vegas is open 24 hours, so you’ll be able to do most of what you want at any point in the day. You can always access areas of the Strip and Downtown with shows, shopping, bars and clubs, many of which offer discounts to the locals. Or, you can enjoy the endless shopping and new restaurants around town. There’s also surprisingly great outdoor recreation at Mount Charleston (you can even ski there in the winter) and Valley of Fire. You can even go boating at Lake Mead.

It’s a traveler’s paradise

One of the perks of living in a city that people from every corner of the globe visit is that you have access to an international airport that has daily flights to almost anywhere in the world. If you prefer to drive, you’re between three and four hours away from Los Angeles and Anaheim — many Las Vegas residents get season passes to Disneyland and take quick weekend trips (some even make it a single day trip!). Plus, the national parks of both California and Utah are easily accessible and you can make it to plenty of them in just a few hours.

Lots of diverse and delicious food

Not only do you have access to hundreds, if not thousands, of amazing restaurants that serve every type of food imaginable, you’ll also find plenty of diverse international markets. You’ll get your pick of Moroccan, Puerto Rican, Malaysian, Greek, Peruvian and whatever other foods you like. Or, if you’re out for a night of excessive eating, you can go for one of the many buffets the city is known for.

The cons of moving to Las Vegas

With the good comes the bad — after all, no city is perfect and you’re always going to come across things you don’t like. Here are a few of the not-so-great things you can expect in Las Vegas.

las vegas desert

The heat

In other places with hot summers, it’s typically a tolerable heat and you can still do outdoor activities without feeling too uncomfortably hot. But in Vegas, the scorching hot summers make it almost unbearable anywhere that doesn’t have air conditioning. Sometimes, it’s even too hot for pools to open. And even if they’re open, the water won’t be nearly as refreshing — it feels more like soaking in a hot bath.

But if you need something entertaining to do while you’re at home during the extreme temperatures, you can test how long it takes for a scoop of ice cream to turn to liquid on the cement (times of eight seconds have frequently been reported) or you can try cooking an egg on the sidewalk!

Public transportation isn’t great

If you’re used to having access to a variety of great public transportation options like metros, buses and trams and not relying on a personal vehicle, then living in Vegas will be a major change for you. If you don’t have access to a car that you can drive around the city, you’ll spend hours waiting for and sitting on a bus, because that’s really your only other option.

You can always use ride-sharing services, but that can get pretty expensive when you consider that getting from one end of town to the other could take you upwards of 30 minutes.

It’s really dry

With it being a desert, you would expect Las Vegas to be dry. Because of that, lush greenery really doesn’t grow here. Some homes still have grass in their yard, but most people opt for desert landscaping — dirt, rocks and a few desert plants.

If you’re someone with long hair, get ready to double down on your deep conditioning routine — your hair will need it!

How to get started on your move to Las Vegas

Is the Entertainment Capital of the World the right place for you? No matter the kind of life you desire, there’s something for everyone in Las Vegas.

To get you started on your big move, check out the Moving Center for more information about planning your move, including free quotes and moving tips!

We use a rolling weighted average from Apartment Guide and Rent.com’s multifamily rental property inventory of one-bedroom apartments to determine our rent prices. Data was pulled in January 2021 and goes back for one year. We use a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
Population and income numbers come from the U.S. Census Bureau.
Cost of living data comes from the Council for Community and Economic Research.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

Source: rent.com

Wedding Registry for Apartment Dwellers

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Infused Water Recipes To Help You Hydrate & Detox In The New Year

We all know that living in an apartment means less space. When you are living alone, this isn’t a big deal, but throwing a spouse into the mix is a different story. Creating your wedding registry should be an exciting experience, don’t let apartment living hold you back. There are a variety of items that should be put on your apartment wedding registry that will make the both of you feel at home. From nesting end tables to hand-held vacuums, we’ve got you covered on all of the must-haves for your apartment wedding registry!

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Source: blog.apartminty.com

Is a Backdoor Roth IRA Right for You?

A Roth IRA is an individual retirement account that may provide investors with a tax-free income once they reach retirement. With a Roth IRA, investors save after-tax dollars, and their money grows tax-free. Roth IRAs also provide additional flexibility for withdrawals—once the account has been open for five years, contributions can be withdrawn at any time, for any reason.

But there’s a catch: Investors can only contribute to a Roth IRA if their income falls below a specific limit. If your contribution is for 2020, that maximum is $124,000 for a single person or $196,000 for a married couple filing jointly (based on modified adjusted gross income). Though, if you make slightly more than that, you may qualify to contribute a reduced amount.

Related: What Is a Roth IRA?

Want to contribute to a Roth IRA, but have an income that exceeds the limits? Good news: There’s another option. It’s called a backdoor Roth IRA.

What is a Backdoor Roth IRA?

If you aren’t eligible to contribute to a Roth IRA outright because you make too much, you can do so through what’s called a “backdoor Roth.” This process involves converting funds in a Traditional IRA into a Roth IRA.

The government allows you to do this as long as investors pay income taxes on any contributions deducted on taxes (and any profits made) when the investor converted the account. Unlike a standard Roth IRA, there is no income limit for doing the conversion, nor is there a ceiling to how much can be converted.

Related: Traditional Roth vs. Roth IRA: How to Choose the Right Plan

Is a Backdoor Roth Worth Doing?

It depends. Use SoFi’s IRA Contribution Calculator to make an informed decision.

High earners who don’t qualify to contribute under current Roth IRA rules may opt for this route. As with a typical Roth IRA, a backdoor Roth may be a good option when an investor expects their taxes to be lower today than in retirement. Investors who hope to avoid required minimum distributions (RMDs) when they reach age 72 might also consider doing a backdoor Roth.

But if someone is eligible to contribute to a Roth IRA, it may not make sense to bother with a backdoor conversion.

Another thing: A conversion can also move people into a higher tax bracket, so investors may consider waiting to do a conversion when their income is lower than usual.

Related: How Much Can You Put in an IRA This Year?

If an investor already has traditional IRAs, it may create a situation where the tax consequences outweigh the benefits. Say an investor has money deducted in any IRA account, including SEP or SIMPLE IRAs, the government will assume a Roth conversion represents a portion of all the balances. For example, if they contributed $5,000 to an IRA that didn’t deduct and another $5,000 to an account that did deduct. If they converted $5,000 to a Roth IRA, the government would consider $2,500 of the conversion taxable.

If an investor plans to use the converted funds within five years, a backdoor Roth may not be the best place to park their cash. That’s because withdrawals before five years are subject to income tax and a 10% penalty.

Related: Roth IRA 5-Year Rule Explained

How to Open a Backdoor Roth IRA

If an investor has no other Traditional IRAs, here’s how to make a backdoor Roth IRA happen with SoFi:

•  Open both a Traditional IRA and a Roth IRA with SoFi Invest®.
•  Make a non-deductible contribution to the Traditional IRA by the tax deadline (April 15, 2021 for tax year 2020). The maximum allowable yearly contribution is $6,000 (or $7,000 if you’re 50 or older).
•  SoFi will send you a form to transfer the money into your Roth IRA. Sign and return it.
•  If you choose an automated investing account, once the funds are in your Roth IRA, SoFi will invest them in the portfolio you’ve chosen.

Related: 3 Easy Steps to Starting A Retirement Fund

If you have any questions or want some help as you go through the process, schedule a complimentary appointment with one of our licensed financial advisors. SoFi Invest is all about empowering you and your financial future, and we’re here to help.

The Takeaway

A backdoor Roth IRA may be worth considering if tax-free income during retirement is part of an investor’s financial plan, and they make too much to contribute directly to a Roth. Roth IRAs are a good option for younger investors at low tax rates and people with a high disposable income looking to reduce tax bills on capital gains in retirement.

Learn more about your retirement account options with SoFi.


SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).

2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.

3) Digital Assets—The Digital Assets platform is owned by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, http://www.sofi.com/legal.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Source: sofi.com

The Best Home Fitness Equipment of 2018

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The Best Small Space Home Fitness Equipment For Your Apartment

There are many perks of being able to workout in the comfort of your own home, but apartment living doesn’t always afford the space for large equipment. These 10 pieces of home fitness equipment are perfect for your small space.  Kick the excuses and stay on track with your fitness resolutions by picking up one or two of these items!

Fitness Training Adjustable Speed Jump Rope

Small Space Home Fitness Equipment For Your Apartment | Fitness Training Adjustable Speed Jump Rope

TRX Weighted Exercise & Slam Ball

Small Space Home Fitness Equipment For Your Apartment | TRX Weighted Medicine & Slam Ball

Gliding Disk Exercise Sliders

Small Space Home Fitness Equipment For Your Apartment | Gliding Disc Exercise Sliders

Bosu Balance Ball With Resistance Bands

Small Space Home Fitness Equipment For Your Apartment | Bosu Balance Ball With Resistance Bands

  Body Weight Resistance Straps & Anchors

Small Space Home Fitness Equipment For Your Apartment | Body Weight Resistance Straps & Anchors

BodyBoss Full-Body Portable Home Gym

Small Space Home Fitness Equipment For Your Apartment | BodyBoss Full Body Portable Home Gym

Ab Carver Pro Roller

Small Space Home Fitness Equipment For Your Apartment | Ab Carver Pro Roller

11-Piece Resistance Band Set

Small Space Home Fitness Equipment For Your Apartment | 11-Piece Resistance Band Set

Low-Impact Portable Pedal Exerciser

Small Space Home Fitness Equipment For Your Apartment | Low-Impact Portable Peddle Exerciser

Amazon and the Amazon logo are trademarks of Amazon.com, Inc, or its affiliates.

Source: blog.apartminty.com

Best Websites To Shop To Furnish Your First Apartment

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Best Websites To Shop To Furnish Your First Apartment

Moving into your first solo space is an exciting time you’ve set your budget, determined your needs, and have finally found the perfect place. The apartment hunting process is not an easy one, but now it is time for the fun part decorating! Determining the essentials and filling a new apartment can feel overwhelming, but we’ve got you covered. With our helpful checklist and our favorite places to shop to furnish your first apartment, you will be living in style in no time.

 

ALL MODERN

We love All Modern for basic furniture needs. They have everything you need, from bedroom and living room furniture to rugs, bedding, and kitchenware. With three different themes to choose from Minimalist, Mid-Century, and Modern Farmhouse All Modern has designs that will appeal to anyone. Furniture is a great place to start when working with a blank slate, and All Modern’s pieces will give your apartment a clean and classic look.

 

AMAZON

Honestly, what can’t you find on Amazon? Furniture, decorative pieces, cleaning supplies, pantry items…the list goes on. Not only do they have everything you could imagine, but it will arrive soon after ordering too! For those of you that are hesitant to make all of these purchases online, not to worry, Amazon makes returning un-wanted items feel virtually effortless.
Best Places To Shop To Furnish Your First Apartment

 

CASPER MATTRESSES

Buying a new mattress is a huge commitment they are a major investment, and we spend almost a third of our lives using them. That being said, finding the right mattress for you is important. Buying a Casper mattress guarantees great sleep. Their mattresses are designed with comfort and alignment in mind, and their 100-night free trial allows you to make sure you’ve made the right choice. Free shipping and a 10-year warranty are icing on the cake!

 

CB2

We can’t get enough of CB2, Crate&Barrel’s sister store. Modern and unique pieces are their specialty, and they have everything ranging from furniture and artwork to bedding and bath necessities. Believe me when I say, their latest collaboration with Fred Segal is everything. Stock up on some of the essentials for a very low price chic and affordable, what could be better?

 

ETSY

If you aren’t already shopping on Etsy, your life is about to change. Etsy is a global community where curators and creators can share their goods with others interested in supporting small operations, local artists and global finds. Etsy is the perfect place to find one of a kind pieces that will add a unique feel to your new home. We especially love the wall decor and candle selection.

 

H&M

H&M has moved into the home décor market and we couldn’t be happier about it! Their custom pieces will give your home a personalized touch without breaking the bank and you can do it all without losing your security deposit. Their latest collection features everything linen sheets, duvet covers, bathrobes, pillowcases, and more. We love the relaxed look of linen and it will be perfect for when the temperatures begin to rise.
Best Places To Shop To Furnish Your First Apartment

 

IKEA

What is home decorating without Ikea? Ikea is one of our go-to stores, and for good reason. You can always count on them to have some of the most affordable and customizable furniture and home décor options on the market. Shop here for kitchen basics, throw pillows, organization items and, of course, furniture!

 

TARGET

Target is another must-go-to when shopping for your first apartment (or when you are shopping for anything, really). You can find all of your household essentials, home appliances, furniture, décor, and much more. If you prefer to do your shopping online, they categorize all of their home goods into décor styles this is a huge help for those who struggle when picking out the right pieces. If you are shopping in the store, we recommend bringing a list of what you need, it is way too easy to get carried away in Target!

 

T.J. MAXX

T.J. Maxx has always been a favorite of ours for affordable and unique fashion finds, and their Home section has recently become one of our favorites as well. Shop everything from bedding to rugs to funky decor, they have it all. If you are shopping online, they break things down by room and style very helpful for those that are overwhelmed with the thought of decorating an entire apartment from scratch.

 

URBAN OUTFITTERS

Urban Outfitters has everything you need for your apartment if you like to keep things looking trendy. They have all the apartment necessities, but with a bohemian twist to them. Think, tapestries, neon lighting fixtures, shaggy rugs, and floor pillows, and you’ll have the right idea. While a lot of their furniture and larger pieces trend on the more expensive side, plenty of their décor selection is reasonably priced. Their candles, picture frames, and wall art will give your apartment a great aesthetic feel, without breaking the bank.
Best Places To Shop To Furnish Your First Apartment

 

WEST ELM

While it is one of the more expensive options out there, West Elm is one of our guilty pleasures for furnishing and decorating an apartment. Everything about their selection is modern, classy, and unique. If there are certain items you plan to splurge on, we recommend West Elm. Insider tip: they have GREAT sales. Sign up for their mailing list for sale notifications, these are definitely the best times to buy from them.

Amazon and the Amazon logo are trademarks of Amazon.com, Inc, or its affiliates.

Best Websites to Shop for Furniture for Your First Home
Article Name
Best Websites to Shop for Furniture for Your First Home
Description
Furnishing your first apartment can feel like an exciting and daunting task all at once. Make these websites your first stop when shopping for your first apartment and you’ll be feeling at home in no time – without breaking the bank.
Publisher Name
Apartminty
Publisher Logo

Source: blog.apartminty.com

How Much Can You Put in an IRA This Year?

If you have an IRA, or are considering opening one, you might be wondering how much you can contribute every year. How much you can contribute to an Individual Retirement Account (IRA) depends on your age, your income, the IRA type, and whether you also contribute to an employer-sponsored retirement plan.

There are two types of IRAs: traditional and Roth IRAs. Both have set contribution limits, as well as other guidelines. With an IRA, an investor typically has to find one that fits their needs. A report from 2019 reveals that only 36 percent of U.S. households owned an IRA.

Related: What Is an IRA?

According to the Internal Revenue Service, for tax years 2020 and 2021, investors can contribute a total of $6,000 into IRA accounts. (If you’re 50 or older, you can contribute $7,000.)

What Is an IRA?

An IRA stands for Individual Retirement Account. IRAs allow people to make tax-deferred investments that they can use in retirement. There are several different types of IRAs, including traditional IRAs and Roth IRAs. You can set up an IRA with a bank, insurance company, or other financial institution.

What types of IRAs are available?

Traditional IRA

A retirement investor’s contributions to a traditional IRA are typically tax-deductible. Investors won’t pay taxes on earnings with a traditional IRA. When investors reach retirement age, they’ll pay taxes on withdrawals because they’re taxed like income. It’s almost like paying yourself a salary in retirement and paying income taxes on those payments.

Related: How an IRA Works

Roth IRA

Contributions to a Roth IRA are made after taxes and aren’t tax-deductible. With a Roth IRA, earnings aren’t typically taxed, but investors won’t have to pay taxes on withdrawals from a Roth IRA when they reach retirement age and start using the funds in one of these accounts.

Sep IRA

A Sep IRA is a simplified employee pension IRA. These IRA accounts help small businesses or self-employed retirement investors make contributions to an IRA in the employee’s name.

Simple IRA

A SIMPLE IRA plan (Savings Incentive Match PLan for Employees) is an account that most resembles a traditional 401K. This savings incentive match plan for employees can be set up by small businesses that don’t have any other retirement plans. Like a 401(k), this IRA lets employees and employers contribute, but with lower costs and fewer administration fees than a typical 401(k).

Related: How to Open Your First IRA

How Much Can You Contribute to an IRA Each Year?

If you’re younger than 50, you can contribute a combined maximum of $6,000 annually to a traditional IRA or a Roth IRA.

After 50, you’re allowed to make “catch-up” contributions, so the cap goes up to $7,000 a year. Previously, you could not make contributions to a traditional IRA once you reached the age of 70.5. But starting in 2020, there is no age limit; there’s also no age limit for a Roth IRA.

Limits for Roth IRA and traditional IRA contributions for the tax year 2020 and 2021:

•  Under age 50: $6,000
•  Age 50 and older: $7,000

Related: What Is a Roth IRA?

However, there are a few exceptions to the retirement contribution limits. If you make less than the limit in taxable income, you can only contribute up to that amount. On the other end of the spectrum, if you make too much, you can’t contribute to a Roth IRA or may only be able to contribute a reduced amount.

If you’re younger than 50, you can contribute a maximum of $6,000 annually into any type of IRA.

For 2020, if you’re single, you can put in a reduced amount into a Roth IRA if you make between $122,000 and $137,000; above that, you can’t contribute anything.

Related: Traditional vs. Roth IRA: How to Choose the Right Plan

For a married person filing jointly, you can contribute a reduced amount into a Roth IRA if you make between $193,000 and $205,000. (The limits are based on modified adjusted gross income .)

If you already contribute to a 401k or another retirement plan at work, you can still contribute to an IRA.

However, you may not be able to deduct all of your traditional IRA contributions if you or your spouse participates in another retirement plan at work. Roth IRA contributions might be limited if your income exceeds a certain level.

Related: 3 Easy Steps to Starting a Retirement Fund

Still unsure which IRA account you can contribute to? Use SoFi’s IRA Calculator to help you make an informed decision.

How Do I Open an IRA?

Investors thinking about opening an online IRA may want to consider whether a Roth or a traditional IRA makes sense.
Roth IRAs have some limitations that might preclude investors from getting one.

Investors who make more than $206,000 in adjusted gross income a year filing taxes jointly or $139,000 a year filing single may not be eligible to open a Roth IRA.

Vital information needed to open an IRA includes a driver’s license or ID, Social Security number, banking info like routing numbers to fund the account, name, and address of employer, and beneficiary information. After that, investors choose an asset mix and investment type that makes sense for their goals.

Related: The 7 Most Common Questions About IRAs

How Do I Roll Over Funds into an IRA?

Some investors might be thinking about opening a traditional IRA because they have left a job where they had a retirement account and want to move those funds to a new account (or they want to open a Roth IRA and roll over a Roth 401k). Reasons for doing this include the new investment company offers more investment options or the employee seeks more control over the funds or wants to combine funds from another retirement account with the employer-sponsored account.

Generally, funds from this type of account can be rolled over into a new account within 60 days.
The advantage of rolling over one retirement to another account is that investors don’t lose those funds’ tax-deferred status. If investors don’t roll over the funds, they do become taxable.
There are three ways investors can rollover retirement funds into an IRA.

Related: IRA Rollover Rules

Direct rollover

An investor’s old retirement funds administrator, perhaps at a previous job, sends funds directly to the new to an IRA or new employer-sponsored retirement plan. The investor won’t pay taxes or a penalty on this transfer as long as the transferred funds are going to a similarly classified account (Roth to Roth or 401k to traditional IRA).

Trustee-to-trustee transfer

If an investor is getting funds from an IRA, they can ask the financial institution that administers the old IRA to send funds to the new IRA. The investor won’t pay taxes or a penalty on this transfer.

Late or 60-day rollover

The IRS gives people 60 days from the date they receive a distribution from an IRA or retirement plan to roll it over to another plan or IRA. If you roll over after the 60 days has passed, it’s considered “late,” and the distribution will be taxed—and you’ll have to pay a penalty if you are younger than 59.5 years.

Related: IRA Transfer vs. Rollover: What’s the Difference?

Can You Withdraw from an IRA Before Retirement?

It depends. With a Roth IRA, there are situations–like buying your first home, adoption costs, or paying for higher education–where you can withdraw your contributions with no penalties or taxes. For example, an investor can take out up to $10,000 from a traditional IRA—or in earnings from a Roth IRA—without penalties for expenses associated with buying a first home.

Investors can also withdraw funds penalty-free for qualifying medical or educational expenses. And once you hit the age of 59.5, distributions will always be penalty-free.

Here are all the exceptions for early distributions:

•  Made to a beneficiary or estate on account of the IRA owner’s death
•  Made because you’re totally and permanently disabled
•  Made as part of a series of substantially equal periodic payments for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary
•  Qualified first-time homebuyer distributions
•  Not in excess of your qualified higher education expenses
•  Not in excess of certain medical insurance premiums paid while unemployed
•  Not in excess of your unreimbursed medical expenses that are more than a certain percentage of your adjusted gross income
•  Due to an IRS levy of the IRA under section 6331 of the Code
•  A qualified reservist distribution
•  Excepted from the additional income tax by federal legislation relating to certain emergencies and disasters (see the Instructions for Form 5329 for more information), or
•  Not in excess of $5,000, and the distribution is a qualified birth or adoption distribution (see the Instructions for Form 5329 for more information)

Related: Should You Use Your Roth IRA to Buy Your First Home?

Are There Ways to Get Around IRA Contribution Limits?

Sometimes. There’s no limit to how much you can put into an IRA when you’re rolling over funds from a 401(k) or 403(b) account.

Some people also use what’s called a “backdoor Roth IRA” to get around the income limits to contribute to a Roth IRA. This involves contributing the maximum to a traditional IRA, then converting it into a Roth. (There’s no income limit for conversions.) Consult a tax professional to understand all the tax implications.

Is an IRA a Replacement for a 401(k)?

American workers have access to a 401(k) retirement plan through their employers. And, some investors might even be able to get additional 401(k) contributions in the form of an employer match. Investors who have access to a 401(k) and an IRA might be able to accelerate their retirement savings and put themselves in a better financial situation when they reach retirement age.

Related: Should You Open An IRA If You Already Have A 401(k)?

The Takeaway

The rules of IRAs can be complicated, but investing in one doesn’t need to be. SoFi Invest® is all about empowering you and your financial future. Prepare for retirement with a SoFi active or automated Roth or Traditional IRA from SoFi Invest.

Need tips on IRAs or saving for retirement in general? SoFi members can schedule a complimentary personal consultation with one of our credentialed financial advisors to answer their questions.

Looking to open a SoFi traditional or Roth IRA? Learn more about SoFi Invest today.



SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).

2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.

3) Digital Assets—The Digital Assets platform is owned by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, http://www.sofi.com/legal.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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Source: sofi.com

10 $10 Ways to Bring Beauty Into Your Apartment

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Infused Water Recipes To Help You Hydrate & Detox In The New Year

Our favorite way to make an apartment feel like home is by decorating. There is no better feeling than coming home to a place that looks and feels exactly how you’d like it to. That being said, we know that apartment décor can get pricey. That doesn’t mean you have to sacrifice your personal style, though! There are plenty of ways to bring beauty into your apartment without breaking the bank. Below, find 10 ways for $10 (or less) to bring beauty into your apartment. From tidying tips to DIY projects, you’ll find something on this list that will make coming home feel even more special.

Amazon and the Amazon logo are trademarks of Amazon.com, Inc, or its affiliates.

Source: blog.apartminty.com

Decorating With Faux Plants: An Amazon Shopping Guide

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The Best Faux Plants You Can Buy On Amazon Right Now

There are few things that breathe life into a space better than fresh, live plant.  Lush greenery can make your apartment feel more welcoming and calming, but maintaining live plants is not a task all people are capable of or interested in.  Whether you travel often, have a busy schedule or simply possess a black thumb, faux plants may be the best bet for you and your home.  When you think of faux plants, you may imagine tacky, plastic-looking eye-sores, but luckily for all of us, faux plants have come a long way in the past few years.  Just take a look at the collection of beautiful options below that can all be at your door in two days with Amazon Prime:

Faux Boston Fern

Decorating With Faux Plants | Faux Boston Fern

Faux Boxwood Topiary

Decorating With Faux Plants | Faux Boxwood Topiary

Faux Mini Green Grass & Flowers

Decorating With Faux Plants | Faux Mini Grass & Flowers

Faux Philodendron Hanging Basket

Decorating With Faux Plants | Faux Philodendron Hanging Basket

Faux Tabletop Plants In Glass Pots

Decorating With Faux Plants | Faux Tabletop Plants In Glass Pots

Faux Lemon Tree Topiary

Decorating With Faux Plants | Faux Lemon Tree Topiary

Faux Succulent Trio in White Ceramic Vases

Decorating With Faux Plants | Faux Succulent Trio In White Ceramic Pots

Faux Cactus Garden In Cement Planter

Decorating With Faux Plants | Faux Cactus Garden In Cement Planter

Faux Snake Plant In Black Planter

Decorating With Faux Plants | Faux Snake Plant

Faux Fiddle Leaf Tree

Decorating With Faux Plants | Faux Fiddle Leaf Tree

Amazon and the Amazon logo are trademarks of Amazon.com, Inc, or its affiliates.

Source: blog.apartminty.com

What is a 401(k) Profit Sharing Plan?

Like a traditional 401(k) plan, a 401(k) profit share plan is an employee benefit that can provide a vehicle for tax-free retirement savings. But the biggest difference between an employer-sponsored 401(k) and a 401(k) profit share plan is that in a profit share plan, employers have control over how much money—if any—they contribute to the employee’s account from year to year.

In other ways, the 401(k) profit-sharing plan works similarly to a traditional employer-sponsored 401(k). Under a 401(k) profit share plan, as with a regular 401(k) plan, an employee can allocate a portion of pre-tax income into a 401(k) account, up to a maximum of $19,500 per year (in 2020 and 2021).

At year’s end, employers can choose to contribute part of their profits to employee’s plans, tax-deferred. As with a traditional 401(k), maximum total contributions to an account must be the lesser of 100% of the employee’s salary or $58,000 a year per the IRS; that number jumps to $64,500 for older employees who are making catch-up contributions.

How Does 401(k) Profit Sharing Work?

There are several types of 401(k) profit-sharing setups employers can choose from. Each of these distributes funds in slightly different ways.

Pro-Rata Plans

In this common type of plan, all employees receive employer contributions at the same rate. In other words, the employer can make the decision to contribute 3% (or any percentage they choose) of an employees compensation as an employer contribution. The amount an employer can share is capped at 25% of total employee compensation paid to participants in the plan.

New Comparability 401(k) Profit Sharing

In this plan, employers can group employees when outlining a contribution plan. For example, executives could receive a certain percentage of their compensation as contribution, while other employees could receive a different percentage. This might be an option for a small business with several owners that wish to be compensated through a profit-sharing plan.

Age-Weighted Plans

This plan calculates percentage contributions based on retirement age. In other words, older employees will receive a greater percentage of their salary than younger employees, by birth date. This can be a way for employers to retain talent over time.

Integrated Profit Sharing

This type of plan uses Social Security (SS) taxable income levels to calculate the amount the employer shares with employees. Because Social Security benefits are only paid on compensation below a certain threshold, this method allows employers to make up for lost SS compensation to high earners, by giving them a larger cut of the profit sharing.

Pros and Cons of 401(k) Profit Sharing

There are benefits and drawbacks for both employers and employees who participate in a profit-sharing 401(k) plan.

Employer Pro: Flexibility of Employer Contributions

Flexibility with plan contribution amounts is one reason profit share plans are popular with employers. An employer can set aside a portion of their pre-tax earnings to share with employees at the end of the year. If the business doesn’t do well, they may not allocate any dollars. But if the business does do well, they can allow employees to benefit from the additional profits.

Employer Pro: Flexibility in Distributions

Profit sharing also gives employers flexibility in how they wish to distribute funds among employees, using the Pro-Rata, New Comparability, Age-Weighted, or Integrated profit sharing strategy.

Employer Pro: Lower Tax Liability

Another advantage of profit share plans is that they allow employers to lower tax liability during profitable years. A traditional employer contribution to a 401k does not have the flexibility of changing the contribution based on profits, so this strategy can help a company maintain financial liquidity during lean years and lower tax liability during profitable years.

Employee Pro: Larger Contribution Potential

Some employees might appreciate that their employer 401(k) contribution is tied to profits, as the compensation might feel like a more direct reflection of the hard work they and others put into the company. When the company succeeds, they feel the love in their contribution amounts.

Additionally, depending on the type of distribution strategy the employer utilizes, certain employees may find a profit-sharing 401(k) plan to be more lucrative than a traditional 401(k) plan. For example, an executive in a company that follows the New Compatibility approach might be pleased with the larger percentage of profits shared, versus more junior staffers.

Employee Con: Inconsistent Contributions

While employers may consider the flexibility in contributions from year to year a positive, it’s possible that employees might find that same attribute of profit sharing 401(k) plans to be a negative. The unpredictability of profit share plans can be disconcerting to some employees who may have come from an employer who had a traditional, consistent match set up.

Employee/Employer Pro: Solo 401(k) Contributions

A profit share strategy can be one way solo business owners can maximize their retirement savings. Once a solo 401(k) is set up with profit sharing, a business owner can put up to $19,000 a year into the account, plus up to 25% of net earnings, up to a total of $58,000. This retirement savings vehicle also provides flexibility from year to year, depending on profits.

Withdrawals and Taxes on 401(k) Profit Share Plans

A 401(k) with a generous profit share plan can grow quite quickly. So what about when you’re ready to take out distributions? A 401(k) withdrawal will have penalties if you withdraw funds before you’re 59 ½ (barring certain circumstances laid out by the IRS) but the money will still be taxable income once you reach retirement age. Additionally, like traditional 401(k) plans, a profit-sharing 401(k) plan has required minimum distribution requirements (RMDs) once an account holder turns 72.

Investors who anticipate being in a high tax bracket during their retirement years may consider different strategies to lower their tax liability in the future. For some, this could include converting the 401(k) into a Roth IRA. This is sometimes called a “backdoor Roth IRA” because rolling over the 401(k) does not subject an investor to the income limitations that cap Roth contributions.

An investor would need to pay taxes on the money they convert into a Roth IRA, but distributions in retirement years would not be taxed the way they would have if they were kept in a 401(k). Any 401(k) owner who qualifies for a Roth IRA can do this, but the additional funds in a 401(k) profit share account can make these moves that much more impactful in the future.

The Takeaway

A 401(k) profit share plan allows employees to contribute pre-tax dollars to their retirement savings, as well as benefit from their employer’s profitability. But because profit share plans can take multiple forms, it’s important for employees to understand what their employer is offering. That way, employees can create a robust retirement savings strategy that works for them.

There are many retirement savings options besides an employer-sponsored 401(k) (profit-sharing or not), and some investors invest in a combination of different plans that suits their short-term and long-term needs. SoFi Invest® offers both Roth and traditional IRA accounts, both of which can help make saving for retirement easier.

Find out how to open an IRA with SoFi.


SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).

2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.

3) Digital Assets—The Digital Assets platform is owned by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, http://www.sofi.com/legal.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Source: sofi.com