403 (b) plans are the retirement savings plans for educators and employees of tax-exempt organizations. They are also known as tax sheltered annuity plans (TSAs). Participants include teachers, school administrators and other personnel, nurses, doctors, professors, librarians, and ministers. Many of these folks also receive a pension, but often the pension is not enough to… Read More
If you did a Roth IRA conversion in 2010, congratulations. The next smart thing to do is to review that decision and see if it still makes sense for your situation. When a traditional IRA is converted to a Roth, all before-tax contributions made to the IRA become taxable; and the income tax must be… Read More
With the passage of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Act), Congress retroactively reinstated the ability of taxpayers to make direct qualified charitable distributions (QCDs) from an IRA, in amounts up to $100,000, by IRA owners who are at least age 70½ years of age. You have… Read More
An inherited Roth IRA is truly a “gift that keeps on giving.” It is an exceptional estate planning tool. When deciding whether or not to convert your traditional IRA to a Roth IRA, most people (or their advisors) “run the numbers.” The cost and benefits of a Roth conversion is compared to the status quo… Read More
When the Roth IRA conversion law was enacted in 1997, taxpayers with adjusted gross incomes over $100,000 could not convert. No more. On January 1, 2010, every IRA owner will qualify for a Roth IRA conversion – there will be no income limitation. When a traditional IRA is converted to a Roth, all before-tax contributions… Read More
Entrust Group launched a new service for IRA owners. Now you can access your IRA with the swipe of a debit card. Want that new pair of shoes – go ahead – use your IRA money. Want to go on vacation – use your IRA. This is the worst idea I have heard in a… Read More
You don’t have to take a required minimum distribution (RMD) from your IRA in 2009. Under the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA) signed by President Bush on December 23, 2008, RMDs for IRAs and other qualified defined contribution plans are suspended. It is a one year waiver for 2009 only. This… Read More
In view of the precipitous decline in the stock market, there are some tax strategies for owners of traditional or Roth IRAs to consider. Converting a traditional IRA to a Roth IRA A traditional IRA can be converted to a Roth IRA if, for the conversion year, (1) the taxpayer’s modified AGI (not counting the… Read More
On October 3, President Bush signed into law the Emergency Economic Stabilization Act of 2008, more commonly known as the “Bailout Bill.” The financial bailout provisions have had the headlines for days as everyone tries to sort out what on earth the legislation actually does. But the bill also includes a raft of other tax… Read More
The “Bailout” which is what the public calls The Emergency Economic Stabilization Act of 2008 (H.R. 1424) passed the House and was signed by President Bush on October 3, 2008. Lot and lots of little “additions” appeared – plus lots of “pork.” Good news for charities – the law extends the IRA Charitable Rollover which… Read More