I have Questions, do you have Answers?
What is Protection Plus? What do I get for $89.95?
$1 Million Tax Audit Defense – If you receive a notice from the IRS or state, Protection Plus has a team of EAs and CPAs available to help. All of these case resolution specialists are full-time employees of Protection Plus, and each case is assigned to a designated representative so that you will always receive personal service. The program is designed to be flexible – Protection Plus can work directly with you, or through Savutax, or a combination of both to resolve audits and inquiries. With the new $1 Million Tax Audit Defense guarantee, Protection Plus is committed to spending up to $1,000,000 in services to find a favorable resolution for you and your clients.
Identity Theft Restoration – The identity theft restoration service will assist with any kind of identity theft incident, even outside of taxes. In the event you encounter an identity breach, we will provide 6 months of daily credit monitoring, place fraud alerts on your credit records, notify local authorities, and provide a personalized ID Recovery Kit to ensure that your identity is completely restored. Protection Plus includes a full year of access to this service.
$2,500 Tax Preparation Guarantee – You can rest assured knowing that a $2,500 Tax Preparation Guarantee supports your tax preparation services. This guarantee ensures that your tax return is prepared with the utmost accuracy and attention to detail. If a legitimate error is made in preparing a taxpayer’s return, we’ll provide reimbursement for additional fees, penalties, and interest up to $2,500.
Keep in mind that Protection Plus is an optional membership. Not choosing the service will not affect your tax filing.
Traditional IRA vs. Roth
What is the difference between a Traditional IRA and a Roth IRA?
A Traditional IRA and a Roth IRA are both retirement savings accounts in the United States but they are different in how contributions, withdrawals, and taxes are handled.
Traditional IRA – Contributions are usually tax-deductible in the year the contribution is made, reducing your taxable income for that year. Deduction eligibility will depend on your income, and if married, you and your spouse is covered by a workplace retirement plan.
Contribution Limits: - The current contribution limit is $6,500 for 2024 and $7,500 if over the age of 50.
Funds within the Traditional IRA can grow with your contributions, investments, interest, and dividends earned.
When you are at retirement age, the withdrawals are considered taxable income. These funds can also affect your social security benefits possibly making the social security benefits taxable as well.
Early withdrawals – Generally, early withdrawals are subject to a 10% penalty if the withdrawal is taken before age 59 ½, plus taxes unless an exemption applies. Examples of exemptions are first-time home purchase, qualified education, or medical expenses.
Roth IRA – Contributions are made with after-tax dollars so contributions are not tax-deductible.
Contribution Limits: - The current contribution limit is $6,500 for 2024 and $7,500 if over the age of 50. There are also income restrictions with Roth contributions. For 2024, the income limit amount is $153,000 for single filers and $228,000 for married filing jointly. This means that if your income is above these thresholds, you are not eligible to contribute to a Roth IRA. However, you may be able to use a back door Roth. Please see below for additional information.
Funds within the Roth IRA can grow with your contributions, investments, interest, and dividends earned.
When you are at retirement age, the withdrawals are not considered taxable income since you contributed to the Roth IRA using after-tax dollars.
Early withdrawals – Contributions (not earnings) can be withdrawn at any time without taxes or penalties. However, there may be a 10% penalty for early withdrawal if the funds were in the Roth IRA for less than 5 years.
What is a Backdoor Roth IRA?
The Backdoor Roth IRA is a strategy that allows individuals whose income exceeds the income limits for contributing directly to a Roth IRA. The strategy allows for an indirect contribution. It involves converting funds from a Traditional IRA to a Roth IRA taking advantage of the traditional IRA which does not have any income limits.