Are Life Insurance Policy Loans Taxable? | Money IQ
Are life insurance policy loans taxable? Usually no—but one common mistake triggers a ‘phantom income’ tax bill years later.
Why People Leave Money in Cash: Loss Aversion | Money IQ
Most people leave long-term money sitting in cash for one reason—and it isn’t ignorance. Research points to loss aversion, a bias that drives delay.
What’s a Financial Advisor Actually Worth?
How much value does a financial advisor actually add? Vanguard says up to 3% in net returns, with behavioral coaching worth the most.
Can Your Old Employer Cash Out Your 401(k)?
Question: ❓ You left a job two years ago and forgot about the $4,000 sitting in your old 401(k). What could your former employer’s plan legally do with that money? A) Nothing — it’s your money and they have to keep it there until you decideB) Automatically cash it out and send you a check, […]
Is Your Entire 401(k) Withdrawal Taxed?
Question: ❓If you withdraw $50,000 from a traditional 401(k) in retirement, how much of that is typically subject to federal income tax? A) Only the gains—your original contributions are tax-freeB) 50% of the withdrawalC) The full $50,000D) It depends on whether you’ve held the account for more than 5 years Answer: ✅ C) The full […]
What Is a Durable Power of Attorney?
Question: ❓Your parent is in the hospital and can’t make financial decisions. You want to access their bank account to pay their bills. What do you need? A) A signed letter from your parent giving you permissionB) A durable power of attorney, signed while your parent was still mentally competentC) A court order, which you […]
Does a Raise Push You Into a Higher Tax Bracket?
Question: ❓You earn $100,000 a year and get a $10,000 raise, pushing your income to $110,000. That crosses you into the next federal tax bracket. What happens to your taxes? A) Your entire income is now taxed at the higher rateB) You could actually take home less money than before the raiseC) Only the $4,300 […]
Inherited IRA 10-Year Rule, Explained
Question: ❓A parent leaves you their traditional IRA worth $200,000. What do most non-spouse beneficiaries need to know? A) You can leave it untouched and let it grow tax-free for as long as you want.B) You generally have to withdraw the full amount within 10 years, and every withdrawal is taxed as income.C) You’ll pay […]
What Is the Deadline to Contribute to an IRA?
Question: ❓It’s March 10, 2026.You have not made any IRA contribution for the 2025 tax year yet, but you want to. Which statement is true? A) You are too late. IRA contributions for 2025 had to be made by December 31, 2025.B) You can still make a 2025 IRA contribution up to the tax-filing deadline […]
