Bogdan Sheremeta

MOST PEOPLE THINK their retirement accounts are completely locked until age 59½ due to the 10% early withdrawal penalty, but that’s not really true. There are many ways to access your money earlier without the penalty, and knowing them can give you flexibility. Of course, you shouldn’t be touching your retirement accounts unless you’re ready to retire.
Here are some distributions that are not subject to the 10% penalty, per the IRS list:

Birth or adoption (up to $5,000 per child)
Series of substantially equal payments (72t)
First-time homebuyer (up to $10,000,

WHEN MOST PEOPLE think of Roth IRAs or Roth 401(k)s, they just think “tax-free withdrawals.” But that’s only part of the story.
Roth accounts can protect you from financial traps that catch many retirees off guard. Here are five key advantages to keep in mind:
 
1. Tax Rate Protection
One thing we can’t control is future tax rates.
Did you know that in the 1980s, the highest federal tax rate was 50%?

ROTH IRA IS A powerful account. It grows tax-free and withdrawals are tax-free during retirement. Roth IRA also has income limits.
For 2025, if you are filing your taxes as single and make less than $150,000 ($236,000 if married filing jointly) of modified adjusted gross income, you can contribute a maximum amount of $7,000.
But if you make $165,000 (single) or $246,000 (married jointly), you are ineligible to contribute to a Roth IRA directly.

I WAS RANDOMLY scrolling on social media and saw this post:

“Can you just open an LLC and write things off?”
That’s a real question someone asked, and I’ve seen this question asked many times.
There are a lot of misconceptions around LLCs, their purpose, and how LLC changes your tax structure. With TikTok, there are “tax experts” sharing terrible advice, so let me clarify how it could be useful.
 
First, what is an LLC?

IMAGINE YOU ARE already doing all things possible to minimize your taxes:

You are maxing out your pre-tax 401k
You do tax loss harvesting
You did tax efficient placement
You are maximizing Roth IRA through Backdoor Roth

But what other strategies can you use to minimize taxes? You also might not want to start a business or buy real estate.
Another option that many people aren’t aware of is the cash balance plan (CBP).

WE LOST A brilliant mind and generous writer, Jonathan Clements, whose words guided thousands on life, finance, and happiness. Even as he faced the unimaginable, he continued sharing wisdom with clarity, humor, and humanity.
I wanted to take some time and dig into Jonathan’s earliest posts on HumbleDollar. Posts that even the most loyal readers may not have read. With that, I also summarized some main takeaways and learnings that can help us all better navigate our own complex lives.

THE IRS JUST released a new form called Schedule 1-A, which includes all the new tax bill deductions.
I wanted to quickly go through some of it, so that you are more aware of the new potential savings opportunities.
I’ve previously discussed some portions of the bill, but this is the first time we have a peek of the new lines.
All of these deductions are in addition to the standard deduction or itemized deduction.

HOME EQUITY ROSE sharply since 2020 for most states, up 450% in West Virginia, the biggest change in the US.
The average homeowner currently has $313,000 of equity, according to the Mortgage Monitor report.
While that number is likely skewed, we all can agree that many homeowners are sitting on large equity.
And, there likely will come a time when you have to sell your home to either move elsewhere, upgrade, or downgrade. With such large equity also comes another problem –

THE OBBBA CREATED A NEW tax deduction for “qualified passenger vehicle loan interest” effective 2025 through 2028. 
It comes with a lot of rules and nuances, so I wanted to cover this topic a bit more in depth in case you are planning to acquire a vehicle soon.
So, what is “qualified passenger vehicle loan interest”?
It means any interest that was paid during the taxable year (e.g 2025) on a loan started after Dec.

“TRUMP ACCOUNT” WAS created as part of the OBBBA signed on July 4, 2025. But is this account anything special? And how could we use it strategically to build wealth?
There’s been a lot of confusion about how it works, who qualifies, and whether they’re actually useful. I’ll walk through the rules, highlight key opportunities, and give my take on when (if ever) this account makes sense.
First and foremost, I want to point out that no contributions are allowed before 12 months after the date of the enactment of the OBBBA,

THE OBBBA WAS SIGNED on July 4, 2025. There are a lot of different changes in various areas, including student loans, Medicaid, SNAP, etc
My goal is to focus on reviewing the Title VII – Finance, specifically focusing on Subtitle A – Tax.
There are many changes and my goal is to focus on the most important provisions impacting individuals and small business owners.
Let’s get into it:
Section 70101. Extension of the tax rates.