Rules For Roth IRA Withdrawals
Roth IRA (Photo credit: Philip Taylor PT)
If I make a partial Roth IRA withdrawal from a converted Roth IRA, will I have to pay taxes on it? That is a question that is often asked by tax payers.
My spouse and I converted most of our Roth IRA a couple years ago, and taxes were paid on it. If we have to, is it possible to withdraw that portion without paying any taxes or penalties? Just a slight technical issue here-any IRAs cannot be owned by two people, even married couples. It belongs to one of you two, and … Read more at 2009 Tax.
Tax-Free Lump Sums Through Pension Release
Lately, the UK pensions system has come under scrutiny because of the way that investors’ savings are locked away until they reach retirement. This year, for the first time since Individual Savings Accounts (ISAs) were started, they attracted more investors and more money than pension savings vehicles. Experts believe that this is because they offer a simple way to save that doesn’t ‘lock away’ savings until the age of 65.
However, through a process called pension release, there is a way for pension savers to unlock some of their hard-earned money before they retire. Anyone considering pension release must … Read more at 2009 Tax.
Early Bird Gets the Worm: Planning for Retirement in Your Twenties
Thinking about the time when you give up work can never start too early. When you’ve just hit twenty and you’ve been given your first job, thinking about the end of your career is the furthest thing from your mind. Contemplating the end, however, will allow you to take a proactive role in planning for retirement. And maybe allow you to be a grooving granny with cash to burn.
How to go about planning for your retirement
There are certain points that you will need to consider when implementing a plan to cover yourself later in life.
Firstly, before … Read more at 2009 Tax.
Dealing with Social Security Uncertainty
Recent reports published in Daily Finance suggest that the Social Security trust fund is going to begin its collapse around the year 2036. This means that you have about 24 years to adjust your planning and savings to compensate for this problem. This really is adequate time for most people to figure out how to make up the difference between what Social Security promises and what it will be able to deliver.
Tip #1 – Understand the Predictions
Before you panic you need to understand what the predictions about the Social Security trust fund are and how they will impact … Read more at 2009 Tax.
Using Your 401k to Start a Business
Starting your own business allows you flexibility and control of your financial future. While the thought of writing yourself a check from 401k funds to start a business may sound easy, there are several steps to consider while thoroughly reviewing the process. There are tax penalties to understand and if your business doesn’t pan out as well as you had hoped, you could lose more than your retirement funds.
The use of additional resources such as a financial planner or a retirement plan administrator will help you review options. You may have the option to roll over 401k funds into … Read more at 2009 Tax.
Pros and Cons of IRA Conversions
IRA conversions are basically where you change the classification of your account from an IRA classification as a Traditional Individual Retirement Account over to a Roth IRA. Back in 2010 the government changed the rules to allow investors to move over to Roth IRA’s from their Traditional IRA’s irrespective of the amount of money that they earned. Before 2010 people were only able to invest in Roth IRA’s if their MAGI (modified adjusted gross income) went below a certain level. One example was married couples whose combined income exceeded $179,000 – previously they would not have been allowed to … Read more at 2009 Tax.
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