Category - IRAs

1
Getting the Most Out of Your IRA
2
Six Factors to Consider Before Converting to a Roth IRA
3
Which is Right For You; a Traditional or Roth IRA?
4
How Do You Calculate Your MAGI?
5
Understand The Basics of An IRA

Getting the Most Out of Your IRA

With all of the new changes that have recently gone into effect for IRAs, I thought it would make good sense to go over some of the most important aspects of these accounts. Most all of us have at least one IRA account, and often we have a couple of accounts, including a Roth IRA and the traditional IRA (or “trad” IRA).

The rules for these accounts can become quite complex, especially as we begin drawing funds out of the accounts or considering what will happen with the account at our demise, but we shouldn’t let the complexities keep us …

Read More

Six Factors to Consider Before Converting to a Roth IRA

If you have considered converting funds to a Roth  from a traditional IRA or a qualified (tax-deferred) plan like a 401(k), undoubtedly you have run across this tax code item: in 2010, the income limit for Roth conversions is lifted.  On top of that, the IRS will give you two years to pay the tax on your conversion, with the tax for a conversion in 2010 evenly split, coming due in 2011 and 2012.  You don’t have to split the tax, you could pay it all in 2010 if you like, which might be useful if it would be more …

Read More

Which is Right For You; a Traditional or Roth IRA?

The question comes up pretty often, and I’ve dealt with it in general with my recommended “Order of Contributions”, that we discussed briefly during last month’s newsletter. The order is as follows:

1. Contribute enough to your employer-provided retirement plan to get the company matching funds.
2. Maximize your contribution to a Roth IRA.
3. Continue increasing your contribution to your employer-provided plan up to the annual maximum.

Beyond those three items, you may want to consider college savings accounts, tax-efficient mutual funds in a taxable account, or a low-cost annuity, among other choices.

But the question I was referring …

Read More

How Do You Calculate Your MAGI?

There are income limits for contributing to an IRA (traditional and Roth), and below are links by filing status to illustrate the income limits in the situation where you are or are not covered by an employer-provided retirement plan, given your filing status.  This, along with your filing status and your Modified Adjusted Gross Income (MAGI) is an important factor in setting the limits for TIRAs, as there is the issue of deductibility at stake.

In order to fully understand the limitations, you also need to understand what makes up your Modified AGI (MAGI).  The MAGI is calculated as follows:…

Read More

Understand The Basics of An IRA

To start off, let’s talk about the basics of IRAs.  The following information holds true for both traditional IRA (TIRA) and Roth IRA (RIRA) plans.

IRA accounts can be held at a variety of institutions, from banks and credit unions, to brokerages and insurance companies.  Essentially, if it is a financial institution, quite likely there is an IRA offering.  Typically, an account is established by filling out an application, identifying yourself by name, address, and social security number.  You’ll be asked to name a beneficiary – a decision not to be taken lightly, but we’ll get to that issue a …

Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login