Category - IRAs

1
IRAs And Medicaid
2
How To Convert A Non-Deductible IRA To A Roth IRA
3
Qualified Charitable Contributions From Your IRA In 2012 And 2013
4
Does Your IRA Include After-Tax Money?
5
What Exactly Is A Roth IRA?

IRAs And Medicaid

When it comes to IRAs and Medicaid eligibility the question that gets asked is, “How does my IRA affect my eligibility for Medicaid?”

Many states share similar guidelines when it comes to exempt and non-exempt assets in IRAs. Essentially, it boils down to this: if the IRA is not in payout status (the IRA owner is not taking required minimum distributions) then the assets in the IRA are included (non-exempt) in the determination of eligibility. However, if the IRA is in payout status and the owner is now taking required minimum distributions (RMDs) the total amount of the IRA is …

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How To Convert A Non-Deductible IRA To A Roth IRA

So you want to contribute to a Roth IRA, but you make too much money, and your employer doesn’t offer a Roth 401(k) eh? If your Adjusted Gross Income (AGI) is higher than $110,000 (or $173,000 if married), you can’t contribute directly to a Roth IRA for 2012. But what if you REALLY want to contribute to a Roth IRA? There IS a way!

Non-deductible Traditional IRA contributions allow high income earners to get some of the tax benefits of IRA’s, but not all of them. Money put into a Traditional IRA is normally tax deductible, grows tax deferred, and …

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Qualified Charitable Contributions From Your IRA In 2012 And 2013

With the passage of the American Taxpayer Relief Act of 2012, the provision for Qualified Charitable Contributions (QCD) from an IRA has been extended to the end of calendar year 2013.

Great news, right?  But what does that mean?  Can you make a QCD for 2012?

As you know, the QCD provision is limited to taxpayers who are over age 70½ and thus subject to Required Minimum Distributions (RMD).  In addition, the QCD must normally be sent directly from your IRA custodian to the qualified charity – it can’t be taken in cash and then sent to the charity.  If …

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Does Your IRA Include After-Tax Money?

If you have an IRA that has certain types of funds in it, you may be in a position to have some of your distributions treated as post-tax, meaning that you will not have to pay ordinary income tax on the distribution as you normally would.  But what kinds of money is considered post-tax?

The common way to have post-tax funds in an IRA is to make non-deductible contributions to the account.  This occurs when you are not eligible to make deductible contributions due to income restraints, but you still wish to make IRA contributions for the year.

For example, …

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What Exactly Is A Roth IRA?

Roth IRA’s (Individual Retirement Account) were introduced in 1997 by Senator William Roth. 15 years later, there is still a lot of confusion about what they actually are, and who should use them. Prior to 1997, there were only IRA’s (now called Traditional IRA’s to differentiate them from Roth IRA’s). You could put money into a Traditional IRA each year, and deduct your contribution on your tax return. This meant you didn’t have to pay income taxes on your Traditional IRA contribution. The money would then grow tax deferred, so you didn’t pay taxes on the growth every …

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