What Is a Mega Backdoor Roth?
06/02/2026
A Mega Backdoor Roth is an advanced tax strategy that allows employees to funnel large amounts of after-tax dollars into a Roth IRA or Roth 401(k) beyond the standard employee contribution limits. This strategy relies entirely on working for a company whose custom 401(k) plan permits specific after-tax contributions and in-service distributions. Executed properly, it
What Is “ Limited purpose FSA ”?
06/02/2026
A Limited Purpose FSA (Flexible Spending Account) is a specialized, employer-sponsored health account that allows employees to save pre-tax dollars specifically for eligible dental and vision expenses. Unlike a standard general-purpose Health FSA, it is intentionally structured to be fully compatible with a Health Savings Account (HSA). By restricting your spending to eye and dental
What Is an IRA?
06/02/2026
An IRA, which stands for Individual Retirement Arrangement (or commonly Individual Retirement Account), is a personal, tax-advantaged savings account that allows working individuals to build long-term wealth for retirement completely separate from employer-sponsored plans. It serves as a financial umbrella that protects your personal investments from annual capital gains and dividend taxes. By utilizing an
What Is an Inherited IRA?
06/02/2026
An Inherited IRA—also known legally as a Beneficiary IRA—is a specialized retirement account opened when an individual receives a traditional IRA, Roth IRA, or workplace retirement plan after the original account owner passes away. Strictly monitored by the IRS, this account serves as a temporary container to manage the distribution of the deceased person’s wealth.
What Is an Individual Retirement Arrangement?
06/02/2026
An Individual Retirement Arrangement, commonly known as an IRA, is a personal, tax-advantaged account that allows individuals to save money independently for their retirement years. Unlike workplace accounts provided by an employer, this layout is set up directly by you with a bank, brokerage, or financial institution. It serves as a dedicated personal savings plan
What Is an Indirect Rollover?
06/02/2026
An indirect rollover is a method of moving assets from one tax-advantaged retirement account to another where the funds are distributed directly to you first. Instead of transferring the money seamlessly between financial institutions, your current plan custodian cuts a check or deposits the funds into your personal bank account. To keep the transaction entirely
What Is “ HSA distribution ”?
06/02/2026
An HSA distribution is any withdrawal of funds from your Health Savings Account. When you take money out of this account to pay for a qualified medical bill, the distribution is entirely tax-free. However, if you withdraw money for non-medical reasons, the distribution becomes subject to regular income taxes and can trigger a steep financial
What Is “ High deductible health plan ”?
06/02/2026
A High-Deductible Health Plan (HDHP) is a type of health insurance policy characterized by lower monthly premium payments and higher initial out-of-pocket costs before insurance coverage begins. To officially qualify as an HDHP for tax purposes, the plan must meet specific minimum deductible and maximum out-of-pocket limits established by the IRS. Enrolling in an IRS-qualified
What Is “ Health Savings Account ”?
06/02/2026
A Health Savings Account (HSA) is a specialized, tax-advantaged savings account designed to help individuals cover qualified medical expenses. To qualify for one, you must be enrolled in a High-Deductible Health Plan (HDHP). It is widely considered one of the most powerful tax-saving tools available because it offers unmatched tax breaks on the money you
What Is “ Health FSA ”?
06/02/2026
A Health FSA (Flexible Spending Account) is an employer-sponsored benefit arrangement that allows employees to pay for qualified out-of-pocket medical, dental, and vision expenses using pre-tax dollars. Funded through automatic deductions directly from your regular paychecks, it lowers your overall taxable income and saves you money on your tax bill. Because it is tied to