Update 10/22/24: During the Q3 earnings call they stated:
We have already achieved our plan of refreshing 40 products globally this year, and we expect to do several more by year end.
I think it’s likely that the Business Platinum will be refreshed soon. Some reddit users found a new design image for the Business Platinum card, but as far as I know that is a placeholder but the html does show ‘<div role=”img” class=”dls-card-lg dls-card-tilt” style=”background-image:url(/content/dam/amex/us/credit-cards/features-benefits/Q32024-New-Card-Art/SBSPropLend’.
Original post: During the American Express earnings call today American Express’ CFO Christophe Le Caillec announced that they plan to complete 40 card refreshes globally this year.
In 2024, we expect to exit the year with some further momentum compared to the current growth supported by continued product innovation and our focus on premium value propositions. We currently have plans to refresh around 40 products globally next year.
Previously American Express has stated that it wants to refresh charge cards every 3-4 years. The last time the Platinum & Gold card had a major overhaul was 3-4 years ago I think we can expect those cards to be refreshed. This lines up with the Dell/Adobe and Indeed credits having a 2024 end date.
Do you want to learn how to get paid to shop? It’s possible! Many companies and apps now give you ways to get paid for shopping that you might already do. You can make extra cash by grocery shopping, buying clothes, or even just browsing stores. These opportunities range from being a personal shopper to…
Do you want to learn how to get paid to shop? It’s possible! Many companies and apps now give you ways to get paid for shopping that you might already do.
You can make extra cash by grocery shopping, buying clothes, or even just browsing stores. These opportunities range from being a personal shopper to taking surveys about products you buy. Some options let you shop for yourself, while others involve shopping for other people. It’s a fun way to earn money doing something you enjoy.
Over the years, I’ve found that there are so many ways to make money while shopping, and it’s been a great side hustle for me. From getting paid to shop for others to earning cash back on my own purchases, it’s an easy and enjoyable way to bring in extra income.
How To Get Paid To Shop
Below are the best ways to get paid to shop.
1. Personal shopper
Personal shoppers help people buy things. They pick out clothes, gifts, and other items for clients, so this can be a fun way to get paid for shopping.
To become a personal shopper, you need good taste and people skills. You should enjoy fashion and keeping up with trends.
Many personal shoppers work in person in retail stores, but you can also get paid to shop online for others. They help customers find outfits and accessories. Some work for wealthy clients, buying everything from groceries to designer clothes.
You can start by getting a job at a department store and looking for positions in personal shopping or styling. Another option is to work for yourself and you can find clients through word-of-mouth or online platforms.
When I was younger, I had a friend who was a personal shopper for a family. My friend mainly did their grocery shopping and ran errands, but would occasionally buy gifts for when the family was attending a birthday party or a wedding.
2. BestMark
I’ve done a lot of mystery shopping over the years, and it’s been a fun way to earn extra money while doing something I already enjoy. Whether it’s evaluating a store’s customer service, trying out new products, or going to a restaurant, it’s pretty easy work.
BestMark is a top mystery shopping company that’s been around since 1986.
As a BestMark shopper, you’ll visit stores, restaurants, and other businesses. You’ll act like a regular customer and evaluate your experience, and this might include checking product quality, service speed, and staff friendliness.
After your visit, you’ll fill out a detailed report online. BestMark gives you a list to help you understand what to look for during your shop.
The pay for BestMark shops varies, but you can tend to earn between $10 and $20 per task. For most assignments, you will get your meal or whatever you buy reimbursed. They usually give you a limit on what you can spend or they specifically tell you what to buy.
Recommended reading: 9 Best Mystery Shopping Companies To Work For
3. Swagbucks
Swagbucks is a popular website that pays you to shop online, and it’s free to join and easy to use.
I’ve been using Swagbucks for almost 10 years now, and I think it’s pretty easy to earn points.
To get paid to shop with Swagbucks, there are two main ways to earn points:
Earn cash back when shopping online. For example, right now you can get up to 8% cash back when shopping at Macy’s, up to 4% when shopping on Amazon, up to 10% when shopping at Best Buy, and more.
Earn points (SB) by submitting your shopping receipts. You can submit any receipt that you have from the last 14 days – both in-store and online receipts. You can then earn points. For example, you can get 50 points for any loaf of bread that you buy, 50 points for any bananas, 900 points for diapers, and more.
When you’ve collected enough SB, you can trade them for gift cards. You can pick from lots of popular stores. If you prefer cash, you can get money sent to your PayPal account instead.
I’ve redeemed over 100 gift cards from Swagbucks over the years, and I love how easy this rewards site is to use.
If you join Swagbucks through my referral link, you will receive a $10 bonus.
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Swagbucks is a site where you can earn points for answering surveys, shopping online, watching videos, using coupons, and more. You can use your points for gift cards and cash.
4. Rakuten
Rakuten is a popular way to earn cash back when you shop online. It’s free to use and super easy to get started.
I have used Rakuten for years and it’s an easy way to get cash back for the online shopping that you already do. In fact, I just used it on a hotel booking, and I received 2% back, which adds up quickly for a hotel!
You just sign up for an account on Rakuten’s website or app. Then when you want to buy something, go through Rakuten first. They’ll send you to the store’s site to shop like normal.
After you make a purchase, Rakuten adds cash back to your account. The amount varies by store, but it’s often 1% to 10% of what you spend. Some stores even pay you 20% or more during special sales.
You can get paid by check or PayPal. Rakuten sends out payments every 3 months and you need at least $5 in your account to get paid.
So, why does Rakuten give you this cash back? Rakuten makes money by getting a commission from stores when you buy stuff. They share part of that commission with you as cash back.
Please click here to sign up for Rakuten. Plus, you can get a $30 bonus when you spend $30 if you join right now (at the time of this writing; please double-check the current offer).
5. Stitch Fix stylist
Want to get paid to shop for others? Becoming a Stitch Fix stylist might be perfect for you. This job lets you work from home and help people look their best.
Stitch Fix hires stylists for women’s, men’s, and kids’ styling. They even train you, so you can start with no experience.
As a Stitch Fix stylist, you’ll pick out clothes for customers based on their likes and needs. You’ll use a computer to see what items are available and choose the best ones for each person.
6. Instacart shopper
Becoming an Instacart shopper is a way to make money grocery shopping on your own schedule.
As an Instacart shopper, you’ll pick up and deliver groceries to customers. Instacart has full-service shoppers, where you shop and deliver groceries, as well as in-store shoppers, where you only shop in-store but don’t deliver (someone else picks up the items and delivers).
To start, you need to be at least 18 years old. You’ll also need a smartphone to use the Instacart app as this app tells you what to buy at the grocery store and where to deliver it.
Instacart gives you a payment card to use at stores. You’ll get this card about a week after signing up. You use it to pay for the groceries you’re buying for customers.
Recommended reading: Instacart Shopper Review: How much do Instacart Shoppers earn?
7. Shopkick
Shopkick is a free app that lets you earn rewards for shopping. You can get points called “kicks” for different activities. These include scanning products in stores and uploading receipts.
You don’t even need to buy anything to earn kicks. Just walking into certain stores can give you points. The app works with many popular retailers like Target and CVS.
As you collect kicks, you can trade them for gift cards.
To start, just download the Shopkick app on your phone. Then link your credit or debit cards to your account, because this lets you earn kicks automatically when you shop at partner stores.
8. Ibotta
Ibotta is a free app where you can earn cash back on your everyday purchases. It works for both online and in-store shopping at many popular retailers.
To get started, download the Ibotta app on your phone. Before you shop, browse the app for “offers” at your favorite stores. You’ll see cash back deals on specific items or entire purchases.
When shopping in stores, buy the items with offers (of course, make sure these are items that you actually want to buy because the item is not free, it is simply more like getting a discount). Then, take a picture of your receipt with the app when you are done. Ibotta will match your purchases to the offers and add cash back to your account.
For online shopping, start your purchase through the Ibotta app or website. Shop as usual, and you’ll automatically earn cash back on qualifying items.
Ibotta works with many big stores like Walmart, Target, and Kroger.
Once you reach $20 in your account, you can cash out via PayPal or choose a gift card. It’s a simple way to make your shopping more rewarding.
This app is available for both Android and iOS (iPhone).
You can sign up for Ibotta here.
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Ibotta is an app where you can get cash back and earn free gift cards. Simply submit your receipts on your everyday purchases with your phone.
9. Ath Power Consulting
Ath Power Consulting is a company where you can get paid to do mystery shopping. They have a huge network of over 600,000 shoppers across North America.
Ath Power does more than 10,000 mystery shops each month. They work with many well-known brands and companies around the world.
Ath Power mystery shoppers shop in person for companies, and then share their thoughts about the products and services they try. Companies can then use this information to improve what they sell to customers.
10. IntelliShop
IntelliShop is a company that hires for mystery shopping jobs. You can sign up to become a secret shopper and get paid to visit stores.
Most tasks pay between $5 and $20. They usually take less than 15 minutes in the store, and then after your visit, you’ll need to fill out a report.
IntelliShop has jobs in stores, online, and over the phone.
As a mystery shopper for any of the mystery shopping companies on this list, please remember to keep any receipts or business cards from your visit. You’ll need these to prove you completed the task and get paid.
Recommended reading: How To Become A Mystery Shopper
11. Care.com
Care.com is a site where you can earn money by helping others with tasks like grocery shopping. You can sign up as a helper on their platform to find local gigs.
The site connects you with people who need assistance, such as parents and seniors. You might help with grocery shopping, cooking, or other errands.
As a helper on Care.com, you can set your own rates. Some helpers charge between $15 and $25 per hour. The amount that you decide you want to get paid may vary based on your experience and the tasks you do.
You may be able to find enough gigs to make this a full-time career, or you can also do this part-time in your spare time.
12. Capital One Shopping
Capital One Shopping is a free tool that can help you save money when you shop online. It’s a browser extension and mobile app that works in the background while you browse.
When you’re ready to check out, Capital One Shopping searches for coupon codes automatically and it tries to apply them to your order to get you the best deal.
The tool also compares prices across different websites. This can help you find the lowest price for items you want to buy.
You can earn rewards called Shopping Credits when you make purchases through Capital One Shopping. These credits can be redeemed for gift cards to popular stores.
While you won’t get paid directly to shop, you can save money and earn rewards. This can add up to significant savings over time and even free gift cards.
I recently received a $71 gift card for simply using the Capital One Shopping browser extension, which was super easy to get.
You can learn more at Capital One Shopping Review: Is It Worth It?
13. Fetch Rewards
Fetch Rewards is a free app that lets you earn points for shopping. You can get points by scanning any receipt or shopping online through the app.
I use Fetch Rewards for nearly all of my grocery shopping receipts. What I like about Fetch is that you don’t need to clip coupons or look for special offers. You just buy products and scan your receipts when you are done. It takes less than one minute to scan your receipt and earn points, so it is very easy.
Fetch gives you points for every receipt you upload. You can earn extra points by buying specific brands or products. The app has special offers where you can earn extra points, such as for buying a specific brand of cheese.
You can turn your points into gift cards from many stores and restaurants. Some options include Amazon, Target, and Starbucks.
You can sign up for Fetch Rewards here.
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With this app, you can scan your grocery receipts (from any grocery store or wholesale club, any time) and earn free gift cards. It is free to sign up and easy to use.
14. Uber Eats
With Uber Eats, you can make money by delivering food.
To get started, you’ll need to create an account and fill out some forms. Once approved, you can begin accepting delivery requests through the Uber app.
Uber Eats drivers can earn around $15 to $26 per hour on average. Your earnings can vary based on factors like your location, how busy it is, and the amount that you earn in tips.
You will want a reliable vehicle and a valid driver’s license, of course, for this side gig.
Recommended reading: 14 Ways To Make Money Driving
15. DoorDash
DoorDash is another way to get paid for delivering food.
DoorDash pays Dashers weekly through direct deposit. If you need money faster, DoorDash offers a Fast Pay option. This lets you cash out your earnings right away for a small fee.
Remember, you’re responsible for your own expenses like gas and car maintenance. It’s a good idea to track these costs to see how much you’re really earning.
16. Taskrabbit
Taskrabbit is an app that lets you make money by doing odd jobs for people in your area. You can pick tasks that fit your skills and schedule.
Some popular jobs on Taskrabbit include cleaning houses, assembling furniture, and running errands (such as shopping for others).
Taskrabbit gives you the flexibility to choose when and how much you work, as well as the type of work that you want to do.
17. Walmart personal shopper
You can get paid to shop as a Walmart personal shopper. This job lets you pick out items for customers who order online.
You’ve probably seen Walmart personal shoppers when you’ve been in Walmart. They work for Walmart and typically have a uniform and a very large basket where they collect items for different orders.
Walmart personal shoppers earn about $15 per hour on average.
Most personal shoppers work full-time or nearly full-time, between 32 to 40 hours a week.
As a personal shopper, you’ll walk around the store and find items customers want. You’ll need to be quick and careful to pick the right products.
Frequently Asked Questions
Getting paid to shop can be a fun way to earn extra money. There are different methods like using apps, shopping for others, and being a mystery shopper. Here are answers to common questions about how to get paid to shop.
How to get paid to go shopping?
You can get paid to shop by using cash back apps, becoming a personal shopper, or doing mystery shopping. Cash back apps give you money back on purchases. Personal shoppers buy things for busy people. Mystery shoppers check stores and fill out shopping assignments on their customer experience.
What are the top apps that pay you for shopping?
Some popular apps that pay you for shopping are:
Rakuten: Gives cash back on online purchases
Ibotta: Pays rebates on groceries and other items
Shopkick: Rewards you for scanning items in stores
Fetch Rewards: Gives points for uploading grocery receipts
These apps are free to use and can help you save money on things you already buy.
How can I earn cash by doing grocery shopping for others?
You can earn cash by grocery shopping for others through apps like Instacart or Shipt. Sign up as a shopper, get orders from customers, and deliver their groceries. You’ll get paid for each order you complete.
How much money do people usually make by delivering groceries?
The amount of money you can make by delivering groceries varies. Most shoppers make between $10 and $25 per hour, and your pay depends on factors like the number of orders you complete, the size of the orders, tips from customers, and time of day and demand.
Is being a secret shopper a good side hustle?
Secret shopping can be a good side hustle. It lets you earn money while shopping and dining out, but it’s not a full-time job. I have done a lot of mystery shopping assignments over the years.
What ways to get paid to shop on Amazon are there?
You can get paid to shop on Amazon in a few ways:
Use cash back sites like Rakuten when shopping on Amazon
Join Amazon’s Vine program to review products
Sell items on Amazon as a third-party seller
Sign up for the Amazon Associates Program to earn from product links
These methods can help you save money or earn extra cash while shopping on Amazon.
Best Ways To Get Paid To Shop – Summary
I hope you enjoyed my article on how to get paid to shop.
Getting paid to shop is a fun and easy way to make extra money while doing things you already like. I have been getting paid to shop for over 10 years now, and I have done almost everything on this list. While I’ve not earned a full-time income doing anything on this list, I have earned side income and plenty of free gift cards over the years.
You can use cash back apps or become a personal shopper to earn cash. You can make money buying groceries, clothes, or even taking surveys about your shopping habits.
Mystery shopping is another way to earn money by pretending to be a regular customer and reporting your feedback on your experience. Companies like BestMark and IntelliShop pay for this. Apps like Swagbucks and Fetch Rewards make it easy to earn by scanning receipts or shopping online.
Whether you want a side hustle or just want to save money, getting paid to shop is a fun way to make more money.
A SEP IRA, or Simplified Employee Pension IRA, is a tax-advantaged retirement plan for people who are self-employed or run a small business. SEP IRA contribution limits determine how much you can contribute to the account each year.
The IRS sets contribution limits for SEP IRAs and adjusts them annually for inflation. SEP IRA contribution rules permit employers to make contributions to their own or their employees’ SEP accounts; employees do not contribute to a SEP.
Key Points
• SEP IRAs offer a tax-advantaged way to save for retirement, beneficial for self-employed and small business owners.
• It’s possible to contribute as much as $69,000 to a SEP IRA in 2024, an increase from the previous year.
• For 2024, employers can contribute up to the lesser of 25% of an employee’s compensation or $69,000 to a SEP IRA.
• Contributions to SEP IRAs are tax-deductible and must be reported on IRS Form 5498.
• Since contributions to SEP IRAs are made with pre-tax dollars, qualified withdrawals are subject to ordinary income tax.
What Is a SEP IRA?
A SEP IRA is a tax-advantaged retirement account that allows employers to make contributions on behalf of employees. Businesses of any size can establish a SEP IRA, including self-employed individuals who have no employees.
traditional IRAs. Specifically, that means:
• Contributions to a SEP IRA are tax-deductible for employers or self-employed individuals
• Qualified withdrawals are subject to ordinary income tax since SEP IRAs are funded with pre-tax dollars
• Early withdrawals before age 59 ½ may be subject to taxes and penalties
• Required minimum distributions (RMDs) are required at age 73 (assuming you turn 72 after Dec. 31, 2022).
The SECURE 2.0 Act permits employers to offer employees a Roth SEP IRA option, though they’re not required to. It’s also possible to convert a traditional SEP IRA to a Roth IRA, to get tax-free retirement withdrawals. However, the account owner would have to pay tax on earnings at the time of the conversion.
SEP IRA Contribution Limits for 2024
Once you open an IRA, it’s important to be aware that the IRS determines the maximum SEP IRA contribution limits each year. For 2024, it’s possible to contribute as much as $69,000, up from the maximum limit of $66,000 in 2023.
Unlike traditional or Roth IRAs, catch-up contributions are not allowed with SEP IRAs.
Here are the details on how the 2024 SEP IRA contribution limits work.
Maximum Contribution Amounts
The SEP IRA max contribution by employers for 2024 is the lesser of the following:
• 25% of an employee’s compensation
OR
• $69,0003
This limit applies to employers who make contributions on behalf of employees. As noted above, employees cannot make elective salary deferrals to a SEP IRA the way they can with a traditional or Roth 401(k) plan.
If you’re self-employed your SEP IRA contribution limits for 2024 are the lesser of:
• 25% of your net self-employment earnings (see how to calculate net self-employment earnings below)
OR
• $69,0004
Self-employed individuals may want to compare a solo 401(k) vs SEP IRA to decide which one offers the most benefits in terms of contribution levels and tax advantages.
Calculation Methods and Factors
Whether you’re an employer or a self-employed individual dictates how you calculate the amount you can contribute to a SEP IRA.
According to SEP IRA rules, employer contributions are based on each employee’s compensation. The IRS limits the amount of compensation employers can use to calculate the SEP IRA max contribution for the year.
For 2024, employers can base their calculations on the first $345,000 of compensation. As with the SEP IRA contribution limit, the IRS adjusts the compensation threshold annually.
In addition, contribution rates are required to be the same for all employees and the owner of the company. So if you’re a business owner who is contributing a certain amount to your own account, you must contribute funds at that same rate to your employees.
If you’re self-employed, you’ll need to calculate your net earnings from self-employment less the deductions for:
• One-half of self-employment tax
AND
• Contributions to your own SEP IRA
Net earnings from self-employment is the difference between your business income and business expenses. For 2024, the self-employment tax rate is 15.3% of net earnings, which consists of 12.4% for Social Security and 2.9% for Medicare.
Strategies for Maximizing SEP IRA Contributions
Maximizing SEP IRA contributions comes down to understanding the annual contribution limit and the deadline for making contributions.
The IRS releases updated SEP IRA contribution limits as soon as they’re finalized to allow employers and self-employed individuals sufficient time to plan. You’ll have until the annual income tax filing deadline each year to make contributions to a SEP IRA on behalf of your eligible employees or yourself, if you’re self-employed.
Once you open an investment account like a SEP IRA, you can make monthly contributions or contribute a lump sum to meet the max SEP IRA limit for the year. If you’re self-employed, you may find it helpful to contribute something monthly and then make one larger lump sum contribution just ahead of the tax filing deadline once you’ve had a chance to calculate your net earnings from self-employment.
This strategy could mean that you miss out on some earnings from compounding returns since you’re putting in less money throughout the year. However, it may prevent you from making excess contributions to your SEP IRA, which can result in a penalty.
Recommended: What is a Self-Directed IRA?
Potential Changes and Updates for Future Years
SEP IRA contribution limits don’t stay the same each year. The amount you contribute for 2024 will likely increase for 2025. Staying on top of changes to the contribution limits can ensure that you don’t miss out on opportunities to maximize your SEP IRA.
Cost-of-Living Adjustments (COLAs)
Internal Revenue Code (IRC) Section 415 requires annual cost of living increases for retirement plans and IRAs. Cost-of-living adjustments are meant to help your savings rate keep pace with the inflation rate.
These COLA rules apply to:
• SEP IRAs
• SIMPLE IRAs
• Traditional and Roth IRAs
• 401(k) plans
• 403(b)plans
• 457 plans
• Profit-sharing plans
The IRC also applies COLAs to Social Security benefits to ensure that people who rely on them can maintain a similar level of purchasing power even as consumer prices rise.
Monitoring IRS Announcements
The IRS typically announces COLA limits and adjustments in November or December of the preceding year. For example, the IRS released the Internal Revenue Bulletin detailing SEP IRA contribution limits for 2024 and other COLA adjustments on November 20, 2023.
These bulletins are readily available on the IRS website. You can review the latest and past bulletins on the IRS bulletins page.
Compliance and Tax Implications
SEP IRAs are fairly easy to set up and maintain, but there are compliance rules you will need to follow. As an employer, you’re not required to make contributions to a SEP IRA for eligible employees every year, and if you are self-employed, you are not required to make yearly contributions to your own SEP. However, if you make contributions on behalf of one eligible employee, you have to make contributions on behalf of all eligible employees.
And remember, the contribution percentage you use to calculate the SEP IRA maximum for each employee, and for yourself as the business owner, must be the same.
Reporting SEP IRA Contributions
SEP IRA contributions must be reported on IRS Form 5498. If you’re using tax filing software to complete your return you should be prompted to enter your SEP IRA contributions when reporting your income. The software program will record contributions and calculate your deduction for you.
There’s one more thing to note. Contributions must be reported for the year in which they’re made to the account, regardless of which tax year the contributions are for.
Excess Contribution Penalties
The IRS treats excess SEP IRA contributions as gross income for the employee. If you make excess contributions, the employee would need to withdraw them, plus any related earnings, before the federal tax filing deadline.
If they fail to do so, the IRS can impose a 6% excise tax on excess SEP IRA contributions left in the employee’s account. The employer can also be hit with a 10% excise tax on excess nondeductible contributions.
The Takeaway
For small business owners and the self-employed, SEP IRAs can be a good way to save and invest for retirement. Just be aware that SEP IRA rules are more complicated than the rules for other types of IRAs when it comes to contributions and deductions. If you’re contributing to one of these plans for your employees, or for yourself as a self-employed business owner, it’s important to know how much you can contribute, what each year’s contribution limits are, and when contributions are due.
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FAQ
What is the maximum SEP IRA contribution for 2024?
The SEP IRA contribution limit for 2024 tops out at $69,000. That’s the maximum amount you can contribute to a SEP account on behalf of an employee or to your own SEP IRA if you’re self-employed.
Can I contribute to both a SEP IRA and a 401(k)?
It’s possible to contribute to both a SEP IRA and a 401(k) if you’re employed by multiple businesses. The plans must be administered by separate companies, or you must work for a company that has a 401(k) and then contribute to a SEP IRA for yourself as a self-employed business owner.
Are SEP IRA contributions tax-deductible for employers?
Employers can deduct SEP IRA contributions made on behalf of employees. Contributions must be within the annual contribution limit to be deductible. Excess SEP IRA contributions are not eligible for a deduction.
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From bustling urban centers to serene coastlines and a rich historic heritage, Maryland offers residents a diverse range of lifestyles to enjoy. Whether you’re drawn to its proximity to Washington, D.C., or the charm of the Chesapeake Bay, it’s a place filled with both opportunities and challenges. If you’re wondering, Is Maryland a good place to live?, this article will dive into the pros and cons of living in Maryland, so you can make an informed decision.
Is Maryland a good place to live?
Moving to Maryland provides an eclectic mix of urban energy and coastal relaxation. The largest cities, including Baltimore, Germantown, and Columbia, have distinct vibes. Baltimore is known for its bustling harbor, rich maritime history, and iconic local cuisine, especially its famous crab cakes. Columbia, on the other hand, offers suburban comforts and a growing job market. Maryland’s central location between Washington, D.C., and Philadelphia makes it an ideal base for commuters seeking easy access to both major cities.
The state is home to major employers like Johns Hopkins University and Under Armour, making it a hub for healthcare and technology sectors. Education in Maryland is strong, with excellent public school systems and top-tier universities like the University of Maryland. Maryland also has a thriving cultural scene, from the world-class museums in Baltimore to Annapolis’ maritime history and lively festivals celebrating everything from seafood to arts.
Maryland state overview
Population
6,177,224
Biggest cities in Maryland
Baltimore, Columbia, Germantown
Average rent in Baltimore
$1,455
Average rent in Columbia
$2,191
Average rent in Germantown
$1,693
1. Pro: Proximity to major cities
Living in Maryland means easy access to major cities like Washington, D.C., Philadelphia, and even New York City. If you live in places like Silver Spring or Rockville, you’re just a short drive or Metro ride away from Washington, D.C. This proximity makes it ideal for those who want to work in the capital but prefer a more suburban lifestyle. Maryland’s location also makes weekend trips to Philadelphia or NYC entirely doable.
Travel tip: If you’re planning a quick trip to NYC, consider taking the Amtrak from Baltimore’s Penn Station—the Acela Express will get you there in just under three hours, avoiding the hassle of driving and parking in the city.
2. Con: High cost of living
With all that convenience comes a price, and renting in Maryland can be costly depending on where you choose to live. Cities like Bethesda and Rockville in Montgomery County see some of the highest rental rates, with the average one-bedroom apartment costing around $2,431 per month. Annapolis, known for its waterfront charm, also carries a premium, with average rents hovering around $2,231. In contrast, cities like Frederick offer more affordable options, where one-bedroom apartments average between $1,863. Overall, rental rates in Maryland are higher than the national average, and combined with rising costs in groceries, healthcare, and utilities, budgeting can be a challenge for many residents.
3. Pro: Abundant outdoor recreation
If you’re an adventurer, Maryland provides a diverse range of landscapes. From the Appalachian Mountains in the west to the Chesapeake Bay and Atlantic beaches in the east, the state has it all. You can hike the C&O Canal, kayak in the bay, or relax on the shores of Ocean City. For those who enjoy winter sports, the mountains in Western Maryland even offer skiing and snowboarding. Nature is always nearby, and you’ll never run out of places to explore.
Insider scoop: For a unique experience, head to Assateague Island, where you can camp right on the beach and wake up to wild horses grazing by the shore.
4. Con: Traffic congestion
Maryland’s proximity to major metropolitan areas comes at a cost—traffic. If you commute into Washington, D.C., Baltimore, or any of the state’s larger cities, be prepared for significant congestion, especially during rush hour. The I-495 Beltway and I-95 are notorious for backups, with commutes sometimes stretching over an hour.
5. Pro: Strong job market
Maryland has a robust job market, with opportunities in healthcare, education, technology, and government sectors. The presence of top employers like Johns Hopkins and the National Institutes of Health ensures strong growth in the medical and biotech fields. Maryland’s proximity to D.C. also means a wealth of government and contracting jobs. Plus, the tech sector is booming in hubs like Columbia, creating even more opportunities.
6. Con: Humid summers
Summers in Maryland can be oppressive, especially in July and August. The humidity makes temperatures feel hotter than they are, often climbing into the 90s. If you’re not a fan of sticky, muggy weather, the summer months can be uncomfortable. The combination of high heat and humidity can make outdoor activities less enjoyable, and air conditioning becomes essential for surviving the season.
Insider scoop: If you’re renting an apartment in Maryland, invest in a good dehumidifier to help keep the humidity in check indoors. It’ll make a big difference in your comfort level and even help prevent issues like mold and mildew, especially in older buildings with less ventilation.
7. Pro: Great education systems
Maryland’s public schools consistently rank among the best in the nation. Maryland also has prestigious universities, including Johns Hopkins University, the University of Maryland, and the U.S. Naval Academy in Annapolis. Whether you’re looking for quality K-12 education or higher education, Maryland delivers.
8. Con: Heavy tax burden
Maryland residents face some of the highest tax burdens in the country, including income, property, and sales taxes. The state income tax rates can range up to 5.75%, depending on your earnings, and local jurisdictions can add even more on top of that. Property taxes are also higher than the national average, which can put a strain on homeowners, especially in the wealthier counties.
9. Pro: Cultural and culinary diversity
Maryland’s cultural diversity is reflected in its food, arts, and festivals. From the famous crab cakes of the Chesapeake Bay to Baltimore’s growing foodie scene, Maryland is a haven for food lovers. The state celebrates its maritime heritage with annual events like the Maryland Seafood Festival and the Annapolis Sailboat Show. And if you’re into the arts, Baltimore’s museums, theaters, and galleries will keep you busy.
Insider scoop: Don’t miss the chance to explore the Preakness Stakes at Pimlico Race Course each May, a thrilling horse race that embodies Maryland’s equestrian culture.
10. Con: Unpredictable weather
The weather in Maryland is unpredictable. While the state enjoys four distinct seasons, you can experience a wide range of weather conditions in a short period. Winters can bring snowstorms, while summers can see severe thunderstorms and occasional hurricanes, particularly along the coast. Spring and fall are usually mild, but you never know when a sudden cold front or heatwave will appear, making it tricky to plan outdoor events.
The most notable change: Beginning in January 2025, you’ll be able to earn elite-qualifying miles (or EQMs, which allow you to earn elite status with Alaska) when you redeem your Mileage Plan miles for flights, even on partner airlines. Currently, most airlines don’t allow you to earn elite miles on award flights, and only Delta lets you earn elite miles on partner award flights (though the cost to use miles on partner flights is usually prohibitive).
This a huge boon for Alaska Airline loyalists — especially because the requirements to qualify for each status tier in the Alaska Mileage Plan remain unchanged, even with more ways to qualify for elite status.
What’s new in 2025
These are the most noteworthy Alaska Mileage Plan changes that will take effect in January 2025:
EQMs on award flights and partner airlines: All award flights booked using Mileage Plan miles on Alaska and partner airlines will now count towards elite status and earn EQMs based on distance flown. You’ll earn one EQM for each mile flown.
EQM bonuses through other partners: Earn 1,000 EQMs for every 3,000 miles earned through the Mileage Plan shopping and dining portals and through non-airline partners like Bilt and Lyft. Previously, you could earn bonus miles through these partners, but not EQMs.
New milestone rewards: Earn selectable milestone rewards, such as bonus miles and lounge access, after eclipsing each of the following EQM thresholds in a calendar year: 10,000; 30,000; 55,000; 85,000; 150,000; 200,000; and 250,000 EQMs. Previously, you’d have to qualify for a new level of elite status (starting at 20,000 EQMs) to get such rewards.
Lower mileage rates for booking partners directly: This was the one negative change in Alaska’s news, but it affects a smaller group of flyers. Mileage earnings rates will now be lower if you book travel through a partner airline’s website and credit your flight to Mileage Plan, but will remain generally unchanged if you book with a partner directly through Alaska Airlines.
New milestone rewards
As of January 2025, Mileage Plan members can earn the following milestone rewards:
10,000 EQMs – choose one of the following:
750 bonus miles.
Pre-order a complimentary meal for your flight.
One (1) complimentary Wi-Fi pass.
Try MVP status for a trip.
Earn double miles with non-air partners.
Upgrade your next Avis rental.
30,000 EQMs – choose one of the following:
2,500 bonus miles.
$25 off a future Alaska flight.
Four (4) Wi-Fi passes.
Try MVP Gold status for a trip.
$100 off an Alaska Lounge membership.
55,000 EQMs – choose two of the following:
5,000 bonus miles.
10,000 miles off an Extras redemption.
Gift MVP for a trip.
One (1) complimentary Lounge day pass.
Two (2) upgrade certificates.
85,000 EQMs – choose two of the following:
15,000 bonus miles.
25,000 miles off an Extras redemption.
Two (2) complimentary Lounge day passes.
Two (2) upgrade certificates.
Gift MVP Gold status for a trip.
Nominate someone for MVP status.
10,000 elite-qualifying miles rolled over.
150,000 EQMs – choose two of the following:
15,000 bonus miles.
25,000 off an Extras redemption.
Two (2) complimentary Lounge passes.
Two (2) upgrade certificates.
10,000 elite-qualifying miles rolled over.
200,000 EQMs – choose two of the following:
15,000 bonus miles.
25,000 off an Extras redemption.
Two (2) complimentary Lounge passes.
Two (2) upgrade certificates.
10,000 elite-qualifying miles rolled over.
250,000 EQMs – choose two of the following:
15,000 bonus miles.
25,000 off an Extras redemption.
Two (2) complimentary Lounge passes.
Two (2) upgrade certificates.
10,000 elite-qualifying miles rolled over.
The best airline rewards program gets better (for most people)
This addition of benefits without requiring more EQMs to qualify for each loyalty tier has the Alaska Mileage Plan flying in rarefied air, especially when compared to the loyalty program devaluations we’ve grown accustomed to.
One exception will be for people who fly frequently on partner airlines and credit their flights to Mileage Plan. To get the most airline miles and EQMs on partner airlines, you’ll now have to book those flights directly through Alaska Airlines, which may be more expensive or potentially not available.
Individual retirement accounts (IRAs) are retirement savings accounts that offer certain tax-advantages. Some types of IRAs, including traditional and inherited Roth IRAs, are subject to required minimum distribution (RMD) rules.
What is an RMD on an IRA? In simple terms, it’s a withdrawal you make from an RMD every year once you reach a certain age. RMDs are a way for the IRS to ensure that retirement savers meet their tax obligations. Failing to take distributions when you’re supposed to could result in a tax penalty, so it’s important to know when you must take an RMD on an IRA.
Key Points
• Required minimum distributions (RMDs) are mandatory withdrawals from IRAs that account owners must start taking at age 73, as per IRS rules.
• RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, and other defined contribution plans.
• The RMD amount account holders need to withdraw is calculated using the IRS Uniform Lifetime or life expectancy tables.
• Failing to take RMDs can result in a 25% excise tax, reduced to 10% if corrected within two years.
• RMDs are taxed as ordinary income, and qualified charitable distributions (QCDs) can be used to reduce tax liability.
Required Minimum Distribution (RMD) Definition
A required minimum distribution is an amount you need to withdraw from an IRA account each year once you turn 73. (In 2023 the SECURE 2.0 Act increased the age that individuals had to start taking RMDs to age 73 for those who reach 72 in 2023 or later.) You can take out more than the minimum amount with an RMD, but you must withdraw at least the minimum to avoid an IRS tax penalty.
The minimum amount you need to withdraw when taking an RMD is based on specific IRS calculations (see more about that below).
Special Considerations for RMDs
RMD rules apply to multiple types of retirement accounts. You’re subject to RMDs if you have any of the following:
• Traditional IRA
• SEP IRA
• SIMPLE IRA
• 401(k) plan
• 403(b) plan
• 457(b) plan
• Profit-sharing plan
• Other defined contribution plans
• Inherited IRAs
You must calculate RMDs for each account separately.
Failing to take RMD distributions from IRAs or other eligible investment accounts on time can be costly. The SECURE 2.0 Act allows the IRS to assess a 25% excise tax on the amount you failed to withdraw. That penalty might drop to 10% if the RMD is properly corrected within two years.
Why Do You Have to Take an RMD?
The IRS imposes RMD rules on IRAs and other retirement accounts to prevent savers from deferring taxes on earnings indefinitely. Here’s how it works.
Roth IRAs generally don’t have RMDs. When you make contributions to a Roth account you use after-tax dollars — in other words, you’ve already paid taxes on that money. So you don’t have to pay taxes again when you make qualified withdrawals in retirement. However, if you inherit a Roth IRA, you will be required to take RMDs.
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RMDs for Roth and Traditional IRAs
When you open an IRA, you will typically choose between a Roth IRA or traditional IRA. There are differences between them when it comes to RMDs. Traditional IRAs are always subject to RMD rules. If you contribute to a traditional IRA, whether you max out the annual contribution limit or not, you can expect to take RMDs from your account later. RMD rules also apply when you inherit a traditional IRA.
Are there RMDs on Roth IRA accounts? No, if you’re making original contributions to a Roth IRA that you own. But you will need to take RMDs if you inherit a Roth IRA from someone else.
The IRS determines when you must take distributions from an inherited Roth IRA. The timing depends on whether the person you inherited a Roth IRA from was your spouse and whether they died before 2020 or in 2020 or later.
If you inherit an IRA from a spouse who passed away before 2020, you may:
• Keep the account as your own, taking RMDs based on your life expectancy, or follow the 5-year rule, meaning you generally fully withdraw the account balance by the end of the 5th year following the year of death of the account holder
OR
• Roll over the account to your own IRA
If you inherit an IRA from a spouse who passed away in 2020 or later, you may:
• Keep the account as your own, taking RMDs based on your life expectancy, delay beginning distributions until the spouse would have turned 72, or follow the 10-year rule, generally fully withdrawing the account balance by the end of the 10th year following the year of death of the account owner
OR
• Roll over the account to your own IRA
If you inherit an IRA from someone who is not your spouse and who passed away before 2020, you may:
• Take distributions based on your own life expectancy beginning the end of the year following the year of death
OR
• Follow the 5-year rule
If you inherited an IRA from someone who is not your spouse and who passed away in 2020 or later and you are a designated beneficiary, you may:
• Follow the 10-year rule
IRA withdrawal rules for inherited IRAs can be tricky so if you know that someone has named you as their IRA beneficiary, you may find it helpful to discuss potential tax implications with a financial advisor.
How To Calculate RMDs on an IRA
To calculate RMDs on an IRA, you divide the balance of your account on December 31 of the prior year by the appropriate life expectancy factor set by the IRS. The IRS publishes life expectancy tables for RMDs in Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs). You choose the life expectancy table that applies to your situation.
IRA Required Minimum Distribution Table Example
The IRS uses the Uniform Lifetime Table to determine RMDs for people who are:
• Unmarried account owners
• Married IRA owners whose spouses aren’t more than 10 years younger
• Married IRA owners whose spouses are not the sole beneficiaries of their account
Here’s how RMD distributions break down.
Age
Distribution Period (Years)
Age
Distribution Period (Years)
72
27.4
97
7.8
73
26.5
98
7.3
74
25.5
99
6.8
75
24.6
100
6.4
76
23.7
101
6.0
77
22.9
102
5.6
78
22.0
103
5.2
79
21.1
104
4.9
80
20.2
105
4.6
81
19.4
106
4.3
82
18.5
107
4.1
83
17.7
108
3.9
84
16.8
109
3.7
85
16.0
110
3.5
86
15.2
111
3.4
87
14.4
112
3.3
88
13.7
113
3.1
89
12.9
114
3.0
90
12.2
115
2.9
91
11.5
116
2.8
92
10.8
117
2.7
93
10.1
118
2.5
94
9.5
119
2.3
95
8.9
120 and over
2.0
96
8.4
Source: IRS Uniform Lifetime Table
And here’s an example of how you might use this table to calculate RMDs on an IRA.
Assume that you’re 75 years old and have $1 million in your IRA as of last December 31. You find your distribution period on the chart, which is 24.6, then divide your IRA balance by that number.
$1 million/24.6 = $40,650 RMD
You’ll need to recalculate your RMDs each year, based on the new balance in your IRA and your life expectancy factor. You can use an online calculator to figure out RMD on an IRA annually.
Withdrawing Required Minimum Distribution From an IRA
There are two deadlines to know when making RMDs from an IRA: when distributions must begin and when you must complete distributions for the year. The SECURE 2.0 Act introduced some changes to the timing of RMD withdrawals from an IRA.
When Do RMDs Start?
Beginning in 2023, the minimum age at which you must begin taking RMDs rose to 73 (that’s the same age you must begin taking RMDs for 401(k)s, in case you are wondering). The deadline for the very first RMD you’re required to make when you turn 73, is April 1 of the following year. So, if you turned 73 in 2025, then your first RMD would be due no later than April 1, 2026.
Once you make your first RMD, all other RMDs after that are due by December 31 each year. So, using the example above, if you make your first RMD on April 1, 2026, then you’d need to make your second RMD by December 31 of that same year to avoid a tax penalty. Just keep in mind that taking two RMDs in one year could increase your tax burden for the year.
Qualified Charitable Distributions (QCDs)
Qualified charitable distributions (QCDs) are amounts you contribute to an eligible charity from your IRA. QCDs are tax-free and count toward your annual RMD amount, and you can contribute up to $100,000 per year. Using your IRA to make QCDs can lower the amount of tax you have to pay while supporting a worthy cause.
For a distribution to count as a QCD, it must be made directly from your IRA to an eligible charity. You can’t withdraw funds from your IRA to your bank account and then use the money to write a check to your favorite charity.
Note that QCDs are not tax-deductible on Schedule A, the way that other charitable donations are.
How RMDs Are Taxed
RMDs are taxed as ordinary income, assuming that all of the contributions you made were tax-deductible. If you have a traditional IRA, your RMDs would be taxed according to whichever bracket you fall into at the time the withdrawals are made.
With an inherited Roth IRA, withdrawals of original contributions are tax-free. Most withdrawals of earnings from an inherited Roth IRA are also tax-free unless the account is less than five years old at the time of the distribution.
The Takeaway
The IRS requires you to take RMDs on certain types of IRAs, including traditional IRAs and inherited Roth IRAs. Knowing at what age you’re required to take money from an IRA and your deadline for withdrawing it can help you plan ahead and avoid a potentially steep tax penalty.
In general, coming up with a financial plan for your future can help you work toward your retirement goals. You can consider different options for saving and investing, including IRAs, 401(k)s, or other types of savings or investment vehicles, to help determine the best fit for your money.
Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Invest with as little as $5 with a SoFi Active Investing account.
FAQ
What happens if you don’t take RMDs from an IRA?
Failing to take an RMD from an IRA on time can result in a tax penalty. The current penalty is generally a 25% excise tax, assessed against the amount you were required to withdraw.
Do you have to take your IRA RMD if you are still working?
You do have to take RMDs from an IRA even if you’re still working. It’s worth noting that the IRS does typically allow you to defer RMDs from a 401(k) while you’re working — however, that rule doesn’t extend to IRAs.
Are you required to use IRA RMD money for specific purposes?
You can use RMDs money in any way that you like. Some common uses for IRA RMDs include medical expenses, home repairs, and day-to-day costs. You can also use IRA RMDs to make qualified charitable donations (QCD), which could minimize some of the tax you might owe. QCDs must be made directly from your IRA to the charity.
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Looking for ways to earn extra cash online? Websites like Freecash can give you many chances to make money from home. You can try surveys, watch videos, play game apps to win real money, and more to earn rewards. These sites give you fun ways to make money in your spare time. Some pay better…
Looking for ways to earn extra cash online? Websites like Freecash can give you many chances to make money from home. You can try surveys, watch videos, play game apps to win real money, and more to earn rewards.
These sites give you fun ways to make money in your spare time. Some pay better than others, so it’s smart to try a few. You might find new favorites that work well for you.
With a bit of effort, you could earn some nice extra spending money each month.
I have earned over 100 free gift cards and PayPal money by using many of the sites below, so I know they are real!
What Is Freecash?
Freecash is a website where you can earn money by doing fun activities online. It’s like getting paid to play! You can make extra cash by taking surveys, trying out new apps, and even playing games on your phone or computer.
Freecash started in 2020 (you can find my full Freecash review here). Since then, lots of people have joined and earned money. In fact, Freecash users have made over $75 million combined!
Here’s how it works:
Sign up for free
Pick an activity you like
Complete the task
Get coins as a reward
Every 1,000 coins equals $1. When you have enough coins, you can trade them for real money or gift cards. You can get paid through PayPal, choose gift cards from places like Amazon or Google Play, or even get paid in crypto (like Bitcoin).
Freecash has many ways to earn:
Welcome bonus when you join
Surveys that pay $1 for 5 to 10 minutes
Games that can pay up to $650
Download apps that pay $1 to $75
You can even make money by telling your friends about Freecash. Plus, there are contests where you can win extra cash by being a top earner.
It’s pretty quick to start making money on Freecash. On average, people earn enough for their first payout in just 17 minutes.
I have personally made $302 by playing games on my phone on Freecash in just one week. You can read about it here – How I Made $302.80 Playing Games on My Phone (In One Week).
Click here to sign up for Freecash.
Best Websites Like Freecash
Here’s a quick list of the best sites like Freecash:
Below are the best websites like Freecash to make money.
1. Swagbucks
Swagbucks is a rewards platform where you can make side cash online.
I started using Swagbucks years ago, and it’s helped me earn extra cash from home or while traveling. I’ve personally earned over 100 free gift cards through Swagbucks, so I know it’s a real app that pays you!
You can earn points called SB by doing easy tasks. These include taking surveys, watching videos, shopping for cash back, scanning receipts, and playing games. You can also get SB for shopping online or searching the web.
It’s free to join and only takes a few minutes to sign up. The points you earn can be turned into free gift cards, such as to Amazon, Target, Visa, and PayPal.
To play games on Swagbucks, just go to the “Play” tab after logging in. When I logged in, I saw over 20 games I could get paid to play, with a total reward value of $2,264.02 or 226,402 SB points.
Swagbucks won’t make you rich, but it’s an easy way to get some extra spending money. You could use it for small treats or to help pay bills. Give it a try and see how much you can earn!
If you join Swagbucks through my referral link, you can receive a $10 bonus.
Recommended reading: Swagbucks Review
2. KashKick
KashKick is a Get Paid To (GPT) site that pays you for doing simple tasks like taking surveys and playing games. It’s free to join and easy to use.
One of the best things about KashKick is the variety of games you can play. You might try Monopoly GO, Yahtzee, or Bingo Blitz. Some games can even earn you over $100 if you reach certain levels.
Example: Here’s how you can make money playing Monopoly Go on KashKick: Install the game (make sure to allow tracking on your device!) and reach Board 27 within 8 days to get $30. If you reach Board 42 in 12 days, you’ll earn an extra $40, and if you reach Board 71 in 24 days, you’ll get another $50. Altogether, you can earn $120!
Surveys are another good way to earn on KashKick. You’ll answer questions about products and services, and each survey usually takes less than 20 minutes and pays between $1 and $5.
When you’re ready to get paid, KashKick uses PayPal. You need to earn at least $10 before you can cash out.
Please click here to sign up for KashKick for free.
Recommended reading: KashKick Review
3. InboxDollars
InboxDollars is a popular site that pays you for doing fun online tasks. You can earn money by taking surveys, watching videos, and playing games.
It’s easy to use and free to join.
InboxDollars pays through PayPal cash and free gift cards to places like Amazon, Apple, Target, Dunkin’ Donuts, Lowe’s, Barnes & Noble, and Gap.
Sign up for InboxDollars here and get a free $5 bonus.
4. PrizeRebel
PrizeRebel is a great choice if you’re looking for a site like Freecash.
You can take surveys, play games, watch videos, and shop to earn points. Some of the games on PrizeRebel include Bingo Blitz, Solitaire Grand Harvest, Age of Apes, Kingdom Guard, Yahtzee, Woody Sort, Viking Rise, and others.
These points can be turned into cash (PayPal money) or free gift cards.
Like Freecash, PrizeRebel also has a referral program so you can earn extra by inviting friends to join.
You can sign up for PrizeRebel here.
5. MyPoints
MyPoints is a popular rewards site that lets you earn money in different ways, just like Freecash. You can take surveys, play games, and shop online to get points.
To get paid to play games on MyPoints, log in to your dashboard and go to the “Games” tab. There, you’ll find games like Bejeweled, Bingo, Catch 21, Puzzle Match, Wheel of Fortune, and more.
You can sign up for MyPoints by clicking here.
6. Survey Junkie
Survey Junkie is a popular website where you can make money by taking online surveys. They don’t have games to play like Freecash, but they have a lot of surveys that you can answer in your free time.
It’s easy to use and free to join. You can earn points for each survey you complete.
The surveys on Survey Junkie cover many topics. You might answer questions about products, brands, or your daily habits. Most surveys take between 5 and 20 minutes to finish.
You can sign up for Survey Junkie here.
7. Branded Surveys
Branded Surveys is an easy way to make some extra cash in your free time by answering surveys.
Each survey can pay you between $0.50 and $5. The amount you get depends on how long the survey takes, and most surveys only take 5 to 20 minutes to finish.
You can also earn points by inviting friends and answering a quick daily poll. If you’re really active, you might even win bonus points on their leaderboard.
Once you have 500 points, you can cash out. That’s equal to $5. You can choose to get paid through PayPal or pick from over 100 different gift cards.
You can sign up for Branded Surveys here.
8. Scrambly
Scrambly is a popular GPT site where you can earn money by doing simple tasks online. It’s a lot like Freecash and other reward sites.
On Scrambly, you can make money by taking surveys, playing games, and trying out new apps. These are quick and easy things to do in your free time.
When you finish tasks, you get points. You can trade these points for real money or gift cards. Some popular gift card options are Amazon, Walmart, and Starbucks.
One good thing about Scrambly is that it has a low cash out minimum of just $1. This means you don’t have to wait long to get your rewards and you can get paid pretty quickly.
Please click here to sign up for Scrambly.
Frequently Asked Questions
Below are answers to common questions about websites like Freecash.
What are some other websites like Freecash where I can make money?
My favorite websites and apps like Freecash are Swagbucks, KashKick, InboxDollars, PrizeRebel, and MyPoints. These sites let you earn money by doing tasks online such as by taking surveys, watching videos, playing games, and more.
What’s better than Freecash?
Swagbucks is a popular choice and I have been active on this site for years. It has many ways to earn and has paid out over $500 million. You can get cash back for shopping, take surveys, and play games. Some people like it better because it has more options to earn money.
How much money can you typically earn using sites like Freecash?
The amount of money you can make on sites like Freecash can vary, but most people make $1 to $5 per day. Some people are able to make $10 to $15 daily. It depends on how much time you spend and which tasks you do. I definitely don’t think you should expect to get rich, but you can earn some extra cash.
What are some tips for maximizing earnings on websites that pay cash for tasks?
To make the most money on sites that pay cash for tasks, I recommend doing the highest-paying tasks first and checking for daily bonuses. Also, try different types of tasks to see what pays best for you. For some people, it may be playing games, and for others, it may be answering as many surveys as possible.
How much can you earn with Freecash?
Freecash pays an average of around $15 to $30 per day (it depends on the day). Your earnings can be higher or lower. It depends on the tasks you do and how much time you spend. Some users make more by doing lots of tasks every day.
Which is better, Freecash or Swagbucks?
Both Freecash and Swagbucks have pros and cons. Swagbucks has more ways to earn and has a longer history. Freecash might have better payouts for some tasks like playing games. Try both to see which you like better, or you can simply just use both at the same time. For me, I really like both Freecash and Swagbucks.
Websites Like Freecash – Summary
I hope you enjoyed my article where you learned about other websites like Freecash.
If you’re looking for easy ways to make extra money online, websites like Freecash have many options. You can earn money by doing surveys, playing games, watching videos, and trying out apps.
These sites won’t make you rich, but with some effort, you can earn a little extra money each month.
I have personally earned over 100 free gift cards as well as PayPal cash by using many of the sites listed in this article. They are all real.
Here’s a quick summary of my top websites like Freecash:
An IRA recharacterization allows you to make changes to the type of contribution you made to one IRA by transferring it to a second IRA within the same tax year. For example, you might recharacterize traditional IRA contributions as Roth contributions, or vice versa.
This process is different from an IRA conversion, which is not limited to the tax year in which you made a contribution. A conversion typically involves moving funds from a traditional IRA into a Roth IRA, not the reverse. In most cases, you would owe income tax on the amount converted to a Roth.
There are different reasons for the recharacterization of an IRA, and some important IRS rules to know for completing one.
Key Points
• An IRA recharacterization allows you to change the type of IRA contribution made within the same tax year, such as from traditional to Roth IRA or vice versa.
• Executing a recharacterization typically involves notifying the IRA custodian, opening a second IRA, if needed, and meeting the tax-filing deadline or extension.
• Reasons for recharacterization may include avoiding tax penalties for excess contributions, or taking advantage of certain tax benefits.
• A recharacterization differs from a conversion, which can be done anytime with contributions from multiple years, and typically involves moving funds from a traditional IRA to a Roth IRA.
• Following the Tax Cuts and Jobs Act passed in 2017, a conversion from a traditional IRA to a Roth IRA cannot be reversed using a recharacterization.
What Is an IRA Recharacterization?
An IRA recharacterization allows you to treat contributions made to one type of IRA as contributions made to a second, different type of IRA. The IRS allows taxpayers to recharacterize contributions to traditional or Roth IRAs only up until the tax-filing deadline each year, assuming you meet relevant income limits and other restrictions for the second IRA account.
For instance, say you deposit money in a Roth IRA, but when it’s time to file taxes you realize that you’ve made contributions in excess of what’s allowed for your tax filing status and income (see details below).
You could execute a recharacterization to have some of that contribution amount treated as traditional IRA contributions for the tax year, and transfer the assets (and any earnings or net losses) to the second IRA.
In that scenario, a recharacterization of Roth IRA contributions could allow you to avoid the 6% excise tax penalty the IRS imposes on excess contributions.
How Do IRA Recharacterizations Work?
IRA recharacterizations work by allowing you to change your IRA contributions for the year from one type of IRA to another. The process is fairly simple; you’ll just need to notify the company, a.k.a. the custodian that holds your IRA, that you’d like to recharacterize your contributions, and open a second IRA for that purpose (unless you have an existing IRA).
You can also transfer the amount you want recharacterized to an IRA at a different institution. This is known as a trustee-to-trustee transfer. In most cases, either one of these methods is preferable to withdrawing the money and redepositing it yourself, which can be tricky and could lead to taxes and/or a penalty if you fail to transfer the money within a 60-day window.
Again, you have until the annual tax-filing deadline to complete an IRA recharacterization. If you filed an extension, then you’ll have until the October extension-filing cutoff. You should receive a Form 1099-R documenting the recharacterization that you’ll need to file with your tax return.
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Reasons for a Recharacterization
Why would you need to recharacterize IRA contributions? There are reasons for doing a recharacterization in either direction (Roth to traditional IRA, or traditional IRA to a Roth). You might consider recharacterization if you:
• Contributed too much to a Roth IRA for the year and need to shift some of that money to a traditional IRA in order to avoid a tax penalty.
• Made traditional IRA contributions, but later learned that you can’t deduct them because you’re covered by a retirement plan at work and your income puts you over the threshold to claim a deduction.
• Contributed to a Roth IRA, but believe you’d benefit more from getting a deduction for traditional IRA contributions.
• Initially contributed to a traditional IRA, but later decided that you’d prefer to contribute to a Roth IRA to enjoy its tax benefits later in life.
Sample Calculation of IRA Recharacterization
How you calculate an IRA recharacterization can depend on whether you’re recharacterizing some or all of your contributions for the year. To keep things simple, let’s assume that you contributed $5,000 to a Roth IRA at the beginning of the year. The IRA earned $1,000 in investment gains.
You’d now like to recharacterize the entire amount to a traditional IRA. You’d tell your IRA custodian that you’d like to do a full recharacterization. This strategy does not require a separate calculation of investment earnings, because the entire balance of the IRA is being recharacterized.
However, if you only wanted to convert $3,000 of your contributions you’d have to do a separate calculation to figure the amount of earnings that need to be recharacterized.
The IRS offers a formula for doing so, which looks like this:
Net Income = Contributions x (Adjusted closing balance – Adjusted opening balance) / Adjusted opening balance
If you don’t want to do the math by hand, it might be easier to plug the numbers into an IRA recharacterization calculator, or consult with a tax professional.
Pros and Cons of Recharacterizing an IRA
There are pros and cons to using a recharacterization strategy.
Pros
IRA recharacterization offers some flexibility with regard to how your IRA contributions are treated, if your financial circumstances or tax considerations change.
If you start off the year making one type of IRA contribution, you can decide to switch things up at any time before the tax filing deadline. There’s no penalty for changing your mind about what type of IRA contributions you’d like to make, as long as you’re doing so before the filing or extension deadlines.
Recharacterizing an IRA is a simpler process than converting IRA assets, which we’ll discuss shortly. There’s less paperwork involved, and since the transaction can be completed by the custodian without any money being withdrawn from your IRA, a recharacterization can be a more tax-efficient way to adjust your contribution choices.
Cons
That said, there are downsides to a recharacterization. For one thing, you’ll need to be mindful of the tax filing deadlines if you want to recharacterize IRA contributions. If you miss the tax or extension deadline, you won’t be able to recharacterize your contribution amount.
If you recharacterize traditional IRA contributions as Roth IRA contributions, you will owe taxes.
If you recharacterize Roth IRA contributions as traditional IRA contributions, you can only claim the tax deduction a) if you qualify and b) you cannot deduct any earnings on the original contribution, if there were any.
Recharacterization vs. Conversion of an IRA
Recharacterization of an IRA and an IRA conversion are not the same thing. When you recharacterize IRA contributions, you’re changing the type of contributions you made for that specific tax year.
When you convert an IRA, you’re moving money from one type of IRA to another that may include contributions from multiple years. Generally, an IRA conversion refers to moving money from a traditional IRA to a Roth IRA.
If you have a Roth IRA, there would be little benefit to doing a conversion to a traditional IRA since you couldn’t then take the tax deduction. Also, if you first converted a traditional IRA to a Roth, it’s no longer possible to convert it back to a traditional IRA, thanks to changes implemented by the 2017 Tax Cuts and Jobs Act.
Amounts rolled over to a Roth IRA from qualified retirement plans cannot be reversed either.
For example, you might have chosen a traditional option when opening your first IRA but later decided that you’d like to have the tax benefits of a Roth IRA. Converting an IRA to a Roth would allow you to make contributions to a Roth IRA if you’d otherwise be prevented from doing so because your income is too high.
As noted, you’d have to pay taxes on the money you’re converting to a Roth IRA, because the money you deposited in your traditional IRA originally was tax deductible. Roth IRAs are funded with after-tax contributions.
IRA Recharacterization
IRA Conversion
How It Works
Recharacterization allows you to change the type of IRA contributions you make for the current tax year.
Conversion allows you to move amounts in one type of IRA to another, typically a traditional IRA to a Roth IRA.
Rules
Recharacterizations must be completed before the annual tax filing deadline.
Conversions can be done at any time and may include contributions made over multiple years.
Advantages
IRA recharacterization allows some flexibility in deciding what type of IRA contributions you want to make.
Converting a traditional IRA to a Roth IRA can allow you to take advantage of tax-free withdrawals in retirement.
Disadvantages
You must complete a recharacterization by the tax filing deadline or extension deadline; you cannot recharacterize IRA contributions pertaining to one year in a subsequent year.
You will likely owe taxes on converted amounts, which can increase your tax bill.
The Takeaway
Recharacterization of an IRA could make sense if it allows you to gain a tax advantage, or avoid a tax penalty for excess contributions. If you’re unsure whether a recharacterization makes sense, it might be a good idea to talk to a tax professional first.
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FAQ
Are IRA recharacterizations still allowed?
Yes, the IRS still allows IRA recharacterizations. There are some limitations, however, as converted IRAs cannot be recharacterized back, after the fact. You also can’t recharacterize rollovers from a 401(k) or 403(b) to a Roth IRA either.
What is the reason for recharacterizing an IRA?
One of the most common reasons to recharacterize Roth IRA contributions is to avoid a tax penalty for having made excess contributions. It may also be necessary to recharacterize Roth contributions in order to be able to claim a tax deduction for traditional IRA contributions.
Meanwhile, one reason to recharacterize traditional IRA contributions might be that you don’t qualify for the full (or any) tax deduction, and therefore a Roth might look appealing from a tax standpoint.
What is the difference between an IRA conversion and recharacterization?
Converting an IRA means moving assets from one type of IRA to another, typically involving amounts you’ve contributed over several years. Recharacterization of IRA contributions is more limited, and it means you’ve changed your mind about the type of contributions you want to make for the current tax year. A recharacterization of IRA contributions can only be done only for the tax year the contributions were made; an IRA conversion can be done at any time.
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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.
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Looking to buy or sell an online business and are looking for a Flippa review? I have personally bought one website as well as have sold three websites in the past, and I think this can be a great way to make extra money. Flippa is a popular marketplace where people buy and sell websites,…
Looking to buy or sell an online business and are looking for a Flippa review?
I have personally bought one website as well as have sold three websites in the past, and I think this can be a great way to make extra money.
Flippa is a popular marketplace where people buy and sell websites, e-commerce stores, YouTube channels, and other online businesses.
Flippa connects buyers and sellers of online businesses, helping hundreds and sometimes thousands of deals happen each month. You can find all kinds of digital properties on the platform, from small blogs to big e-commerce sites.
But is Flippa the right choice for you? While it has many opportunities, some listings might not be as good as they seem. It’s important to do your homework before jumping into any deal.
Let’s take a closer look at what Flippa has to offer and how you can use it safely.
Please click here to head to Flippa’s website where you can buy and sell online businesses.
Flippa Review
Below is my Flippa review. Enjoy!
What Is Flippa?
Flippa is a popular online marketplace for buying and selling digital businesses. It connects entrepreneurs looking to sell their websites, apps, or online stores with potential buyers.
It’s like eBay but for websites and apps instead of physical items. You can find all kinds of online businesses for sale on Flippa.
The platform is easy to use. Sellers list their businesses, and buyers can browse or search for what they want. Flippa handles the money part to keep things safe for everyone.
Types of online businesses on Flippa
Flippa has a wide range of online businesses for sale. Here are some types you can find:
Websites: Blogs (such as finance or travel blogs), content sites, and niche sites
E-commerce stores: Shopify, Amazon, and other online stores
Mobile apps: iOS and Android applications
Domain names
SaaS businesses: Software as a service companies
You can find both small starter sites and big, profitable businesses. Prices range from a few hundred dollars to millions. This variety makes Flippa great for buyers at all levels.
Buying a Business on Flippa
Flippa is a marketplace where you can buy websites and online businesses. It has many options, but you need to be smart and do your homework before making a purchase.
Why buy a website?
Buying a website can be a great way to make money online. You don’t have to start from scratch. Instead, you get a ready-made business that’s already earning money. This can save you time and effort.
Some benefits of buying a website include:
Instant income
Existing traffic and customers
Proven business model
Many people buy existing online businesses (like blogs) and find ways to improve them so that they can make more money. For example, you may improve the blog design or add a new revenue stream to the business.
But remember, not all websites for sale are good deals. You need to look closely at each one to make sure it’s worth your money.
I have personally bought a website many years ago, and I have many friends who have bought websites as well. For me and most of my friends – we have been able to make money by buying a website that someone else created.
Recommended reading: How I’ve Turned Buying Websites Into My Full-Time Career
How to buy a business on Flippa
Buying on Flippa is pretty simple.
Here’s how you can do it:
Create an account on Flippa.
Search for websites in your niche or budget.
Review the listings carefully.
Ask the seller questions.
Place a bid or make an offer.
If you win, complete the payment.
Transfer the website to your control.
It’s important to take your time and not rush into a purchase. Buying a business is a big decision!
How Flippa works for buyers
Flippa connects you with people selling their websites or online businesses. You can browse listings, ask questions, and make offers.
Flippa has some tools to help you such as:
Verified traffic data
Revenue proof
Site age information
Seller ratings
These can help you decide if a listing is worth your time. But you still need to do your own research too.
Due diligence for buyers
Due diligence means checking everything carefully before you buy. This is super important when buying a website.
Here are some things to look at:
Traffic sources: Check Google Analytics to see where visitors come from
Revenue: Ask for proof of income, like PayPal statements
SEO: Use tools like Semrush to check the site’s search rankings
Content: Make sure it’s original and high quality
Technical issues: Look for any problems with the site’s code or design
Flippa has a “Red Flag Report” that can help spot potential issues. Flippa does charge for this – anywhere from $1,500 to $2,500 per report. But don’t rely on this alone as you should always do your own research too.
The Selling Process
Selling a website on Flippa can be a great way to make money from your hard work.
Why sell a website?
You might want to sell your website for a few reasons.
Maybe you’re ready for a new project. Or you need quick cash. Sometimes, you’ve grown the site as much as you can and want someone else to take it further.
Selling can give you a big payday as websites usually sell for 20 to 36 times their monthly profit. So if your site makes $1,000 a month, you could get $20,000 to $36,000 for it!
Recommended reading: How I’ve Made $80,000 Selling Blogs
How to sell a business on Flippa
Selling on Flippa is pretty easy. First, you make a listing. You’ll need to share info about your site, like how much money it makes and how much traffic it gets.
Flippa charges a listing fee, and the fee all depends on how much you plan on selling your online business for.
When your site sells, Flippa takes a cut. This is called a success fee. It’s 10% for sites that sell for under $50,000. The fee gets smaller for more expensive sites.
You can set a starting price or let people bid. You can also set a “Buy It Now” price if you want.
Preparing your business for sale
Getting your site ready to sell is very important. You want to make it look as good as possible to buyers.
You can start by cleaning up your finances. For example, having clear records of your income and expenses is a must.
Next, make sure your site looks nice and works well, such as by fixing any broken links or errors.
In your listing, you should talk about what makes your site special. Maybe it’s a loyal audience or a unique product – highlight these things in your listing.
Flippa’s Fees and Payment
Flippa charges fees for listing and selling websites and online businesses. They have different fee structures depending on the sale price.
Below we will take a look at how Flippa’s fees work and how you get paid when selling a site.
Listing fees
When you list your site on Flippa, you’ll need to pay an upfront fee. This fee helps keep listings high quality. The cost depends on what you’re selling and your asking price:
Domains: $9 starting fee to list
Websites and apps: $15 starting fee to list
Established businesses: $49 starting fee to list
You can also buy extra features to make your listing stand out. These include a “featured” tag or a spot at the top of search results. These add-ons cost more but might help you sell faster.
Success fees for sales
Flippa takes a cut when you sell your site. This is called a success fee and the amount depends on how much your site sells for:
For sales up to $249,999: 10% fee
Sales between $250,000 and $499,999: 9% fee
Sales from $500,000 to $999,000: 8% fee
Sales from $1,000,000 to $4,999,000: 7% fee
Sales from $5,000,000 to $9,999,000: 4% fee
Sales over $10,000,000: 3% fee
So, if you sell your site for $75,000, Flippa would take $7,500 as their fee.
How does Flippa pay you when selling a site?
When your site sells, Flippa uses a system called escrow to handle the money. Here’s how it works:
The buyer sends money to the escrow account.
You transfer the site to the buyer.
The buyer checks that everything is okay.
The escrow service releases the money to you.
This process keeps both you and the buyer safe. You don’t give up your site until the money is there, and the buyer doesn’t pay until they get the site. Flippa takes their fee from this final amount before sending you the rest.
Flippa Scams
Buying and selling websites on Flippa can be risky because there is money involved. Some sellers try to trick buyers with fake info.
Below let’s look at common scams and how to protect yourself.
Common Flippa scams
One of the most common Flippa scams includes fake revenue screenshots. Now, there are plenty of real sites for sale on Flippa (with honest sellers), but this can sometimes be a problem on Flippa. Some sellers may edit images to show higher earnings than reality, and this trick fools buyers into paying more money for a website.
Another scam is lying about pageviews and traffic. Sellers might use bots to boost visitor numbers and this makes their site look more popular than it is.
Some people sell sites with copied content. They steal articles from other websites and this can lead to legal issues for the buyer.
How to stay safe on Flippa
Even though there are some scammers on Flippa, the majority of listings and sellers are truthful and are real. But, since money is involved, I always recommend that you be careful because you just never know.
There are some ways to stay safe on Flippa, such as:
Always double-check the numbers. Ask for proof of income from PayPal or bank statements. Don’t trust screenshots alone.
Use tools like Semrush to check real traffic. This helps you spot fake visitor claims.
Look for original content. Use plagiarism checkers to find copied text.
Get an expert to review high-priced sites. They can spot red flags you might miss.
Check the seller’s history. Look for good reviews from past buyers. Be careful with new sellers who have no track record.
Ask lots of questions. An honest seller will be happy to give you more info.
Flippa Pros and Cons
Flippa has good and bad points for buying and selling websites.
Pros of Flippa
Here are two Flippa pros:
Flippa has a huge group of buyers, so this means that you have more chances to sell your site. There are thousands of people who just browse on Flippa each day looking for the best deals.
You can find many types of sites on Flippa. They have different topics and prices, and you might find a cheap site to start with or a big one to grow.
Cons of Flippa
Here are two Flippa cons:
Flippa takes a big cut when you sell. They charge 10% for sites sold under $50,000. This can eat into your profits, of course.
There are sometimes scams on Flippa so you need to be very careful when buying.
Frequently Asked Questions
Below are answers to common questions about Flippa.
Is Flippa reputable?
Flippa is a well-known marketplace for buying and selling websites. It has been around since 2009 and many people use it. But like any online platform, you need to be careful.
Is it safe to sell on Flippa?
Selling on Flippa can be safe if you take the right steps. Make sure to use their escrow service and give honest info about your website.
Is it safe to buy on Flippa?
Buying on Flippa can be safe, but you need to be careful. I recommend that you always do your own research on any website you want to buy and don’t rush into a purchase.
What should I look out for to make sure a website I buy on Flippa is legitimate?
To make sure a website you want to buy is real, I recommend that you check the site’s traffic proof, income proof, the seller’s history on Flippa, and that you ask questions about anything that seems odd. If possible, talk to the seller directly. Don’t ignore red flags.
How much does Flippa take from a sale?
Flippa takes a cut of your sale price. For sites selling for $50,000 or less, they take 10%. The fee gets smaller for higher-priced sites.
How long does it take to sell on Flippa?
Selling time on Flippa can vary a lot. Some sites sell in a few days, while others might take weeks or months. According to Flippa, the average online business that costs less than $50,000 usually sells within 15 days, the average $50,000 to $250,000 business takes around 1.5 months, and businesses over $250,000 usually take around 2.5 months.
What are some Flippa alternatives for buying and selling sites?
You have other options besides Flippa for buying and selling sites. Some other popular ones are Empire Flippers, Motion Invest, and FE International.
Flippa Review – Summary
I hope you enjoyed my Flippa review.
So, is Flippa legit?
Flippa is a real company that’s been around for years. Many people use it to buy and sell websites and they have done over 450,000 transactions.
They also have many different categories that you can buy and sell in, such as e-commerce stores, blogs, apps, and other digital assets. Flippa’s marketplace also has many businesses in all kinds of price ranges, so you don’t need to have a ton of money saved in order to buy a business, as there are businesses for sale for less than $10,000 on Flippa all the time.
But like any marketplace, you need to be smart and careful when using it.
I have personally bought and sold a few websites over the years, and I actually just took a quick look on Flippa and saw one of those very same sites listed for sale again on Flippa – what a small world, especially since there are currently over 4,200 websites listed for sale on Flippa. Many people use Flippa all the time to buy and sell a website, and if I were needing to buy or sell right now, I would have no problem with using Flippa – it is a safe site as long as you are careful and avoid scams.
Please click here to head to Flippa’s website where you can buy and sell online businesses.
Are you interested in buying and selling online businesses?
In the United States, full retirement age actually varies depending on the year you were born. But if you were born in 1960 or later, your full retirement age is 67. Full retirement age (FRA) is the age at which you become eligible to receive your full retirement, or Social Security benefits. FRA is a key milestone in life and a crucial component of the U.S. Social Security system.
It impacts how much you’ll receive monthly, when you can claim Social Security in full, and how much your delayed retirement credits will increase over time. Your Social Security benefits will, likely, also have an effect on the decisions you make around your strategies for saving and investing for retirement, too.
Key Points
• Full retirement age varies depending on birth year. It ranges from 66 for those born from 1943 to 1954 to 67 for those born in 1960 or later.
• You can claim your Social Security benefits before FRA (as early as age 62), but your benefit will be permanently reduced by up to 30%.
• You can delay your retirement to increase your monthly benefit by 8% for each year of delay (up until age 70).
• You can still work after you’ve started collecting Social Security retirement benefits. But if you’re younger than FRA and earn above certain limits, your benefits may be reduced. There’s no earnings limit once you reach FRA.
What is Full Retirement Age?
Full retirement age (FRA) is the age at which you become eligible to receive 100% of your monthly primary insurance amount (PIA), which is the starting point for calculating your Social Security retirement benefit.
The PIA is the base monthly payment you should receive once you retire. It’s based on your past earnings and adjusted for inflation. In general, here’s how it works:
• If you retire once you’ve reached your exact FRA, you’ll receive 100% of your PIA.
• Retiring earlier will reduce your monthly Social Security retirement benefit to a smaller percentage of your PIA (but no less than 70% of it — more on this later).
• Conversely, if you delay retirement beyond your FRA, your Social Security retirement benefit will be a higher percentage of your PIA.
The bottom line is that because your Social Security retirement benefit is permanently set based on when you retire relative to your FRA, knowing your FRA is extremely important. Even if you’ve done some planning and opened an online IRA or other retirement account.
And, as noted, having an idea of what you can or should expect from your Social Security benefits can have a profound impact on your strategies as they relate to investing for retirement. Since many people may hope to supplement their Social Security income with their own savings and investment income, it can change the calculus in terms of when you’re able to retire.
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Determine Your Full Retirement Age
As mentioned, FRA varies depending on your birth year. If you were born in 1960 or later, your FRA is 67. For those born before 1960, FRA decreases by two months for each year earlier, down to 66 for those born between 1943 and 1954.
Here’s a table to clarify the math:
Social Security Retirement Age Chart
Year of Birth
Full Retirement Age
Months between 62 and FRA
Maximum PIA reduction if you retire at 62
Months between 70 and FRA
Maximum PIA increase if you retire at 70
1943 to 1954
66
48
-25%
48
+32%
1955
66 and 2 months
50
-25.83%
46
+30.67%
1956
66 and 4 months
52
-25.67%
44
+29.33%
1957
66 and 6 months
54
-27.5%
42
+28%
1958
66 and 8 months
56
-28.33%
40
+26.67%
1959
66 and 10 months
58
-29.17%
38
+25.33%
1960 and later
67
60
-30%
36
+24%
Source: Social Security Administration
Why Full Retirement Age Matters
FRA is a key factor in deciding when to start collecting Social Security benefits. Claim them too early, and your monthly check will be permanently reduced. Wait too long, and you won’t get any additional benefits. So, if you’re trying to figure out how to retire early, this could become a key piece of information in your calculations.
As mentioned, you’ll receive 100% of your PIA if you retire exactly at your FRA. You can apply for Social Security and start collecting earlier, but no earlier than age 62. And your benefits will be reduced for each month you begin early. How much? Here’s a recap:
• 5/9 of 1% for each month up to 36 months before your FRA
• 5/12 of 1% for each month over 36 months before your FRA
For example, if your FRA is 67, and you retire at 65 (i.e., 24 months earlier), your benefits will be reduced by:
24 months x 5/9 x 1% = 13.33%
That means your monthly benefit will be (100 – 13.33)% = 86.67% of your PIA.
If that sounds too complicated, you can check the retirement age calculator on the Social Security Administration (SSA) website.
But that’s not all. If you retire earlier than 65, the age of eligibility for Medicare, you may need to pay for your own healthcare coverage until you turn 65. If your previous job included medical benefits and you retire before becoming eligible for Medicare, you may have to pay a monthly premium to maintain coverage during this interim period. This could increase your expected expenses in retirement.
Regardless, it may be a good idea to enroll in Medicare when you turn 65 or risk paying a late enrollment penalty when you do sign up. Make sure to factor this into your calculations.
If you retire later instead, delaying your retirement beyond your FRA will earn you more money in the form of delayed retirement credits (DRCs), which increase your monthly benefit. If you were born in 1943 or later, you’ll earn a 2/3 of 1% (roughly 0.67%) increase for each month after FRA, equating to an 8% increase per year. You can keep earning these benefits only up until age 70, so there’s no financial reason to wait beyond this age.
For example, if your FRA is 66 and you wait until 68 to retire, you will earn an increase of:
24 months x 2/3 x 1% = 16%
That means your monthly benefit will be (100 + 16)% = 116% of your PIA.
When to Start Collecting Social Security
Given that the average retirement age in the U.S. is 65 for men and 62 for women, many Americans do choose to retire before reaching full retirement age. But there’s no one-size-fits-all answer for when it’s the right time to choose to retire and start collecting Social Security benefits. It depends on several factors.
First, you should honestly assess your health situation.
• Is your life expectancy short or long?
• Are you in good enough health to keep working and earning?
• Do you have persistent health issues that require the best possible health insurance coverage?
• Do you have the means to pay for private insurance if you retire before you’re eligible for Medicare?
Your answers to these types of questions will steer you in the direction.
Additionally, if you’re the higher-earning spouse, your surviving partner might continue receiving your benefits for many years after your passing. In that case, it could make sense to wait to maximize their future benefits — especially if they’re younger than you.
Other considerations like immediate income needs, if you have money in a Roth IRA, the potential for reduced expenses in retirement, or foreseeable job instability (such as concerns about your employer’s financial health) might mean early retirement is the right call.
Further, it may be worthwhile to investigate how a traditional IRA or other type of retirement plan could affect your plans as well.
Early Versus Late Retirement
Here’s a quick recap of the pros and cons of waiting to claim benefits until after FRA versus before FRA:
Claiming Benefits Before FRA
Pros
Cons
Access to income sooner
Permanently reduced monthly benefits
Better if your life expectancy is shorter or you suffer from health issues
Reduced spousal and survivor benefits
Useful if your job stability is uncertain
Might need to pay for private health insurance until Medicare eligibility at 65
Claiming Benefits After FRA
Pros
Cons
Permanently increased monthly benefits
Access to income is delayed
Higher survivor benefits for your spouse
Risky if you have health issues
Potential for higher lifetime income
Can impact your lifestyle or quality of life
Working After Reaching Full Retirement Age
You can keep working and collecting a paycheck after reaching full retirement age. If you keep working after hitting your FRA, your Social Security benefits won’t take a hit. However, if you claim benefits earlier, the government might temporarily withhold some of the benefits until you reach your FRA.
In particular, you might face one of three scenarios:
1. If you’re under FRA for the entire year, you can earn up to $22,320 (in 2024) without any benefit reduction.
2. If you earn more than $22,320, the SSA will deduct $1 from your benefits for every $2 you earn above this limit.
3. In the year you reach FRA, the earnings limit increases to $59,520 (for 2024). The SSA will deduct $1 from your benefits for every $3 you earn above this limit. Only earnings up to the month before you reach FRA count toward this limit.
This provision is known as the retirement earnings test (RET) and is periodically adjusted to account for inflation.
Once you reach FRA, the SSA will recalculate your benefits to account for the months when benefits were withheld due to excess earnings. So, while you don’t get a lump sum back, you do get higher payments for the rest of your life.
The Takeaway
Choosing the right time to apply for Social Security has a tremendous impact on your retirement strategy. Understanding what your full retirement age is factors heavily into this decision since it essentially defines the timing of your retirement. Whether you claim benefits early, at your FRA, or later will affect the amount of your checks. That will also come into play when seeing how far your savings and investments will take you, when paired with your Social Security benefits.
As you plan for your retirement, consider a savings strategy that can potentially offer you compound growth. SoFi Traditional IRAs or Roth IRAs allow you to invest your way. With investment options like stocks, ETFs, and more, you can invest your way. Save, invest, and watch your money grow as you work toward a secure and comfortable retirement.
Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
FAQ
How does age affect my Social Security benefits?
Your Social Security benefits will be reduced by a percentage if you claim them before your full retirement age (FRA) and increased if you delay claiming them. The earlier you claim before FRA, the greater the reduction, the longer you wait, the higher the increase (up until age 70).
Can I choose to receive Social Security benefits earlier than full retirement age?
Yes, you can start receiving benefits as early as age 62, but the earlier you claim them, the more they will be reduced. Note that this reduction is permanent.
What is the significance of the full retirement age increase?
The increase in FRA means you must work longer to claim 100% of your benefits. For example, people born in 1954 could earn full benefits at age 66, while those born in 1960 or later must wait until age 67 for unreduced benefits.
Photo credit: iStock/JLco – Julia Amaral
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