Understanding Dual Contributions: Korean National Pension vs. U.S. FICA

-
Image
Understanding Dual Contributions: Korean National Pension vs. U.S. FICA Navigating social security systems across borders can be confusing—especially for employees working between Korea and the U.S. A recurring question is: Can someone pay into both Korea’s National Pension and U.S. FICA (Social Security and Medicare taxes) at the same time—and what happens if they do? This post breaks down how the Korea–U.S. Totalization Agreement works, what “coverage” means, and the consequences of dual contributions. 1. The Totalization Agreement at a Glance πŸ‡°πŸ‡·πŸ‡ΊπŸ‡Έ Since 2001, the Korea–U.S. Totalization Agreement has coordinated social security coverage between the two countries. Its primary goal is to: Prevent double taxation of social security contributions on the same income during the same time period Protect future benefit rights for cross-border workers Key principles: At any given time, only one country’s social security system applies to your wages C...
Post a Comment

Tax Savings Tip of the Week: Max Out Your Retirement Contributions (But Know the Limits)!

-

Hey money-savvy friends! πŸ™Œ

Want a simple (and totally legal) way to cut your tax bill while building your future nest egg? Let’s talk about retirement contributions. πŸ§“πŸ½πŸŒ΄

If you’ve got a 401(k) through your job, try to contribute as much as you can—especially up to the employer match. That’s free money, folks! And your contributions are made pre-tax, which reduces your taxable income. Less income = less tax. 🎯

No 401(k)? No problem. You can contribute to a Traditional IRA, and depending on your income and situation, you may be able to deduct that contribution on your taxes too.

BUT here's the catch πŸ›‘—if you're already covered by a workplace retirement plan like a 401(k), you might not be able to deduct your IRA contributions, especially if your income is above certain limits.

πŸ‘‰ Translation: You can technically contribute to both a 401(k) and a Traditional IRA in the same year, but you may not get a tax break on both.

2025 contribution limits:

  • 401(k): Up to $23,000

  • IRA: Up to $7,000

  • Age 50+? You get a bonus catch-up contribution on both!

Pro tip: If you’re in this situation, look into a Roth IRA instead. While it’s not tax-deductible now, qualified withdrawals are tax-free in retirement. πŸš€

Bottom line: Know the rules, play them smart, and let your money work harder for you. πŸ’ͺ


μ•ˆλ…•ν•˜μ„Έμš”, μ ˆμ„Έμ— 진심인 μ—¬λŸ¬λΆ„! πŸ™Œ
μ˜€λŠ˜μ€ 은퇴 쀀비도 ν•˜κ³  μ„ΈκΈˆλ„ 쀄일 수 μžˆλŠ” 방법에 λŒ€ν•΄ μ΄μ•ΌκΈ°ν•΄λ³Όκ²Œμš”. λ°”λ‘œ ν‡΄μ§μ—°κΈˆ κ³„μ’Œλ₯Ό ν™œμš©ν•˜λŠ” κ±°μ˜ˆμš”. πŸ§“πŸΌπŸŒ…

λ¨Όμ €, 직μž₯μ—μ„œ μ œκ³΅ν•˜λŠ” 401(k) ν”Œλžœμ΄ μžˆλ‹€λ©΄ κ°€λŠ₯ν•œ ν•œ 많이 λ„£λŠ” κ±Έ μΆ”μ²œν•΄μš”. 특히 νšŒμ‚¬μ—μ„œ λ§€μΉ­ν•΄μ£ΌλŠ” λ§ŒνΌμ€ κΌ­ μ±„μš°μ„Έμš”—이건 말 κ·ΈλŒ€λ‘œ 곡짜 λˆμ΄μ—μš”! 그리고 이 λˆμ€ μ„ΈκΈˆ λ‚΄κΈ° μ „ μ†Œλ“μ—μ„œ 빠지기 λ•Œλ¬Έμ— 결과적으둜 κ³Όμ„Έ μ†Œλ“μ΄ μ€„μ–΄λ“€μ–΄μš”. μ„ΈκΈˆλ„ 덜 λ‚΄κ³ , λˆλ„ 뢈리고! 🎯

λ§Œμ•½ 401(k)κ°€ μ—†λ‹€λ©΄? κ±±μ • λ§ˆμ„Έμš”. 개인 은퇴 κ³„μ’Œ (IRA) 에도 λ‚©μž…ν•  수 있고, μ†Œλ“ μˆ˜μ€€μ— 따라 μ„ΈκΈˆ 곡제λ₯Ό 받을 수 μžˆμ–΄μš”.

그런데 μ—¬κΈ°μ„œ μ£Όμ˜ν•  점! ❗️

401(k) ν”Œλžœμ— 이미 κ°€μž…λ˜μ–΄ μžˆλŠ” μ‚¬λžŒμ€ IRA에 넣더라도 μ„ΈκΈˆ 곡제λ₯Ό λͺ» 받을 μˆ˜λ„ μžˆμ–΄μš”, 특히 μ†Œλ“μ΄ 일정 μˆ˜μ€€μ„ λ„˜λŠ” κ²½μš°μ—λŠ”μš”.

πŸ‘‰ 즉, 401(k)λž‘ IRA λ‘˜ 닀에 λˆμ„ λ„£λŠ” 건 κ°€λŠ₯ν•˜μ§€λ§Œ, μ„ΈκΈˆ ν˜œνƒμ€ λ‘˜ λ‹€ λͺ» 받을 수 μžˆλ‹€λŠ” μ–˜κΈ°μ˜ˆμš”.

πŸ’° 2025λ…„ κΈ°μ€€ λ‚©μž… ν•œλ„:

  • 401(k): μ΅œλŒ€ $23,000

  • IRA: μ΅œλŒ€ $7,000

  • 만 50μ„Έ 이상은 μΆ”κ°€λ‘œ catch-up λ‚©μž… κ°€λŠ₯!

κΏ€νŒ: 401(k) 곡제λ₯Ό λͺ» λ°›λŠ”λ‹€λ©΄ Roth IRAλ₯Ό κ³ λ €ν•΄λ³΄μ„Έμš”. μ§€κΈˆμ€ μ„ΈκΈˆ ν˜œνƒμ΄ μ—†μ§€λ§Œ, λ‚˜μ€‘μ— μΈμΆœν•  땐 μ„ΈκΈˆμ΄ μ•ˆ λΆ™μ–΄μš”. 미래의 λ‚˜μ—κ²Œ 큰 선물이 될 μˆ˜λ„ 있죠. 🎁

Comments

Post a Comment

Popular posts from this blog

λ―Έκ΅­ 법인세 Estimated Tax λ‚©λΆ€

-
  λ―Έκ΅­ 법인세 Estimated Tax λ‚©λΆ€ μ‹œ 귀속 연도 확인 ν•„μš” λ―Έκ΅­ λ²•μΈμ˜ Estimated Tax(μ˜ˆλ‚©μ„Έ) λ‚©λΆ€ μ‹œ, 귀속 연도 섀정에 따라 λΆˆν•„μš”ν•œ Penalty 및 Interestκ°€ λ°œμƒν•  수 μžˆμ–΄ μ£Όμ˜κ°€ ν•„μš”ν•©λ‹ˆλ‹€. 1. μ˜ˆλ‚©μ„Έ 납뢀와 귀속 μ—°λ„μ˜ 뢈일치 κ°€λŠ₯μ„± μ˜ˆλ‚©μ„Έλ₯Ό λ‚©λΆ€ν•  λ•Œ μ‹€μ œ λ‚©λΆ€ μ—°λ„μ™€λŠ” λ‹€λ₯΄κ²Œ, 이전 연도 κ·€μ†μœΌλ‘œ μ²˜λ¦¬ν•˜λŠ” κ²½μš°κ°€ μžˆμŠ΅λ‹ˆλ‹€. 예λ₯Ό λ“€μ–΄, 2025λ…„λ„μ˜ Estimated Taxλ₯Ό 2024λ…„ κ·€μ†μœΌλ‘œ λ‚©λΆ€ν•œ 경우, ν•΄λ‹Ή κΈˆμ•‘μ΄ IRS μ‹œμŠ€ν…œμ— 2024λ…„ μ„ΈκΈˆμœΌλ‘œ μΈμ‹λ˜μ§€ μ•Šμ„ 수 μžˆμŠ΅λ‹ˆλ‹€. 이 경우, IRSμ—μ„œ λ°œμ†‘ν•œ λ ˆν„°μ— Penalty 및 Interestκ°€ ν¬ν•¨λ˜μ–΄ μ•ˆλ‚΄λ˜λŠ” 사둀가 λ°œμƒν•  수 μžˆμŠ΅λ‹ˆλ‹€. 2. IRS μ‹œμŠ€ν…œ 상 처리 방식 IRSλŠ” μ„ΈκΈˆ λ‚©λΆ€ μ‹œ λͺ…ν™•ν•œ 귀속 연도 정보가 μ—†κ±°λ‚˜ μ°©μ˜€κ°€ μžˆλŠ” 경우, ν•΄λ‹Ή κΈˆμ•‘μ„ μžλ™μœΌλ‘œ λ‹€μŒ 연도 μ˜ˆλ‚©μœΌλ‘œ 이월 μ²˜λ¦¬ν•˜μ§€ μ•ŠμŠ΅λ‹ˆλ‹€. λ”°λΌμ„œ, μ˜ˆλ‚© μ‹œ 귀속 연도가 μ •ν™•νžˆ λ°˜μ˜λ˜μ§€ μ•ŠμœΌλ©΄ IRSλŠ” ν•΄λ‹Ή κΈˆμ•‘μ„ ν•΄λ‹Ή μ—°λ„μ˜ μ˜ˆλ‚©μœΌλ‘œ μΈμ •ν•˜μ§€ μ•ŠμœΌλ©°, 결과적으둜 λ‚©λΆ€ μ§€μ—°μœΌλ‘œ κ°„μ£Όν•˜μ—¬ Penalty 및 Interestλ₯Ό λΆ€κ³Όν•  수 μžˆμŠ΅λ‹ˆλ‹€. 3. λŒ€μ‘ λ°©μ•ˆ 귀속 연도가 잘λͺ» 반영된 것이 확인될 경우, λ‹€μŒκ³Ό 같은 쑰치λ₯Ό μ·¨ν•  수 μžˆμŠ΅λ‹ˆλ‹€: IRS에 μ—°λ½ν•˜μ—¬ 귀속 연도 λ³€κ²½ μš”μ²­ μ „ν™” (1-800-829-4933) λ˜λŠ” μ„œλ©΄μ„ 톡해 ν•΄λ‹Ή λ‚©λΆ€ κΈˆμ•‘μ˜ 귀속 연도 μˆ˜μ •μ„ μš”μ²­ν•΄μ•Ό ν•©λ‹ˆλ‹€. Form 843 제좜 Penalty 및 Interest에 λŒ€ν•΄ 감면(Abatement)을 μš”μ²­ν•˜κΈ° μœ„ν•΄ IRS Form 843을 μž‘μ„±ν•΄ μ œμΆœν•  수 μžˆμŠ΅λ‹ˆλ‹€. μ•„λž˜λŠ” Penalty 및 Interest 감면(Abatement)을 μ‹ μ²­ν•  λ•Œ μ‚¬μš©ν•˜λŠ” IRS Form 843 λ§ν¬μž…λ‹ˆλ‹€: πŸ”— IRS Form 843 – Claim for Refund and Request for Abatement (PDF) πŸ”— Form 843 Instructions (IRS.gov) ...
Read more

🚨 Day 17: Red Flags That Could Trigger an IRS Audit

-
🚨 Day 17: Red Flags That Could Trigger an IRS Audit For most taxpayers, the word “audit” evokes dread. But as a CPA, I know that fear often stems from uncertainty—not necessarily wrongdoing. The IRS audits less than 1% of individual returns annually, but certain patterns and mistakes can increase your chances of being flagged. Whether you're self-employed, managing multiple income streams, or just trying to maximize deductions, awareness is your best defense. Here are the most common red flags—and how to avoid them. πŸ“Œ 1. Failing to Report All Income The IRS receives copies of your W-2s, 1099s, and other income statements. If your return doesn’t match what third parties report, their Automated Underreporter system will catch it. Avoid it: Keep a master list of income sources, especially if you freelance, sell products online, or earn interest/dividends. Double-check that all income is reported—even small amounts. πŸ“Œ 2. Excessive Deductions Compared to Income Claiming lar...
Read more

πŸ“… Day 7 – How to Hire Your Kid Legally — And Save Taxes

-
  Day 7 – How to Hire Your Kid Legally — And Save Taxes Hiring your child might sound like a sentimental idea, but it’s actually a strategic tax-saving move —if done right. The IRS allows business owners to hire their minor children under certain conditions, offering both tax deductions for your business and income tax benefits for your child . Here's how to make it work legally and efficiently. ✅ Why Hire Your Child? 1. Your Business Gets a Deduction Wages paid to your child are a legitimate business expense. That means your business income (and tax liability) goes down. 2. Your Child May Owe Zero Taxes As of 2025, a child can earn up to $14,600 (the standard deduction) without paying any federal income tax— as long as it’s earned income (i.e., wages, not gifts or allowances). 3. No Payroll Taxes for Some Businesses If your business is a sole proprietorship or a partnership where both partners are the child’s parents , and your child is under 18 , then: No Social S...
Read more