Category: Roth IRA
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Where Should I Open A Roth IRA?
Fidelity, Vanguard, TD Ameritrade, Charles Schwab… there are just so many brokerages and mutual fund shops, which one should you sign up with for your Roth IRA? The answer is any of them. In fact, if you haven’t opened up a Roth IRA because you didn’t know which investment company would be best then you’ve…
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Rollover Your 401(k) Directly Into Roth IRA
In 2008 and 2009, you will be permitted to directly roll over/convert a 401(k) into a Roth IRA as long as you’re willing to pay the taxes for the conversion and if your annual income does not exceed $100,000 (in 2010, the $100k rule expires). In 401(k) official terms, this means that you can convert…
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Take Advantage of IRA & 401(k) Tax Benefits
When it comes to investing, the tax benefits of IRAs (both Roth and Traditional) and 401(k)s can’t be matched, as long as you use them properly. So, it always pays to make sure that you’re not putting tax advantaged investments into those accounts (unless that’s the only place you’re investing) because you generally can’t take…
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A Weak Case Against Roth IRAs
It’s not very often you hear someone touting the benefits of a Traditional IRA over a Roth IRA, but today it happened. Roland Manarin, founder of Omaha, Nebraska based investment firm Manarin Investment Counsel, says that the bigger pot you work with in a tax-deferred account will result in greater earnings than a tax-free account.…
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Earned Income and Roth IRA Contributions
You can only contribute to a Roth IRA if you have earned income, so one wonders what counts as earned income? Does Social Security count? What about rental income? How about interest from bank accounts or capital gains from the sale of stock? Actually, none of those count as earned income. Earned income is, in…
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2008 Retirement Account Limits
In a few short months it’ll be 2008 and with a new year comes new retirement account contribution limits. For Individual Retirement Accounts (including Roth and Traditional IRAs), the contribution limit for 2008 is $5,000 if you are 49 and below. If you are 50 and above, you can contribute an additional $1,000 as a…
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2010 Traditional IRA Conversion
If you’re currently not eligible to contribute to a Roth IRA because you’re being phased out, you should consider starting a Traditional IRA so that you can convert it to a Roth IRA in 2010, when income restrictions for those eligible to convert are lifted. Right now, if you earn more than $100,000, you are…
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0% Balance Transfer To Fund Your Roth IRA?
It’s only August so you have plenty of time to do some look ahead planning but have you ever considered using a 0% balance transfer from a credit card to fund your Roth IRA? Well, if you have, rest assured that you aren’t alone but there are a few things you should be very much…
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Contributing To Nonworking Spouse’s Roth IRA
If you are working and your spouse is not, you are permitted to contribute to your spouse’s Roth IRA as long as you still satisfy the rules for the Roth IRA. Even though the IRA is for the individual, you are still allowed to contribute to the Roth IRA as long as your income doesn’t…