401(k) Contribution Limits refer to the maximum amount of money that an individual can contribute to their 401(k) retirement savings plan within a given tax year. For the tax year 2023, the limit for employee contributions is $22,500, with an additional catch-up contribution of $7,500 allowed for individuals aged 50 and older, bringing their total...

401(k) Contributions refer to the amounts of money that an employee elects to defer from their salary to a 401(k) retirement savings plan. These contributions can be made on a pre-tax or after-tax (Roth) basis, depending on the plan's provisions. Pre-tax contributions reduce the employee's taxable income for the year in which they are made,...

403(b) Plan A 403(b) Plan is a tax-advantaged retirement savings plan available to certain employees of public schools, tax-exempt organizations, and some ministers. It allows participants to make contributions from their salary on a pre-tax basis, reducing their taxable income for the year. Employers may also contribute to the plan, and the investment earnings grow...

403(b) Plans are retirement savings plans specifically designed for employees of public schools, certain non-profit organizations, and some government entities. These plans allow participants to make pre-tax contributions through payroll deductions, which can grow tax-deferred until withdrawal. Employers may also contribute, either through matching contributions or non-elective contributions. The funds in a 403(b) plan can...

501(c)(3) Organization A 501(c)(3) Organization is a tax-exempt nonprofit organization in the United States recognized under Section 501(c)(3) of the Internal Revenue Code. These organizations operate for religious, charitable, scientific, literary, or educational purposes. To qualify for 501(c)(3) status, organizations must meet specific requirements, including not being organized for profit, ensuring that no part of...

529 Plan Transfers for Estate Planning A 529 Plan Transfer for Estate Planning refers to the process of moving assets within a 529 college savings plan to achieve specific estate planning objectives. This type of transfer allows account owners to effectively manage their estate by reducing the value of their taxable estate while providing for...

1031 Exchange Rules The 1031 Exchange Rules refer to provisions in the U.S. Internal Revenue Code that allow taxpayers to defer capital gains taxes on the exchange of certain types of property. Under these rules, when a property owner sells an investment property and reinvests the proceeds into a "like-kind" property, they can postpone paying...

1040 Form The 1040 Form is an individual income tax return form used by U.S. taxpayers to report their income, claim tax deductions and credits, and calculate their tax liability for the year. It is filed annually with the Internal Revenue Service (IRS). The 1040 Form is the standard form for reporting personal income and...

1099 Form The 1099 Form is a series of tax forms used to report various types of income other than wages, salaries, and tips. The most common variant is the 1099-MISC, which is used to report payments made to independent contractors or freelancers. The 1099 Form is issued by businesses to report payments totaling $600...

Abatement refers to a reduction or elimination of a tax liability or penalty. In taxation, it often involves a decrease in the amount owed, which can occur due to various reasons such as tax credits, deductions, or specific governmental programs designed to relieve taxpayers from financial burdens. For example, a property tax abatement may be...