Have You Thought About a Roth Conversion?

With the stock market appearing to head towards a–dare I say it–recession, now might seem like an odd time to talk about converting your traditional IRA to a Roth IRA. However, converting when the markets are low actually might be the best time to do so. When it comes to Roth IRA conversions, the tax bill for doing so is based on the value of your traditional IRA assets. Thus, when the markets are down, there’s a really good chance your IRA assets are down too, which means a lower tax number. As for the actual tax hit, as you Continue reading Have You Thought About a Roth Conversion?

Getting Ready for Tax Season Before Tax Season

This blog post wasn’t written to remind you to do your taxes nor is it intended to ruin your holiday cheer by mentioning taxes. Rather, it’s a reminder that January is a few weeks away, which means that your tax information will become available over the next month and a half. You know, those notices from your employer regarding what they took out for taxes. Other tax information you may receive may be in relation to student debt or retirement accounts. Regardless of the source of the tax information, you should make sure that you save all that information, or–given Continue reading Getting Ready for Tax Season Before Tax Season

Retirement Account Mistakes Happen. Just Make Sure You Correct them.

The rules surrounding retirement savings accounts can be complicated. As such, it’s not uncommon for people to make mistakes when it comes to saving for retirement. Luckily, the rulemakers realize this also and allow for corrections of many retirement savings account errors and mistakes. It should be noted however, that many mistakes are not penalty free, regardless of whether you correct the error in a timely fashion or not. However, taking the steps to correct an error can keep those penalties to a minimum and potentially save you thousands of dollars in both taxes and penalty fees. Furthermore, the corrective Continue reading Retirement Account Mistakes Happen. Just Make Sure You Correct them.

The Big Thing Regarding Traditional to Roth IRA Conversions

If you have a traditional IRA and a Roth IRA, you may have had the question arise regarding whether you intend to convert your traditional IRA to your Roth IRA. If you haven’t thought about it, maybe you should consider it. Before you decide to make such a move, though, you should take the time to understand just how a conversion works and what it may cost you. Keep in mind that the big difference between a Roth IRA and a traditional IRA is, in essence, that with a Roth IRA you pay taxes on the money when you make Continue reading The Big Thing Regarding Traditional to Roth IRA Conversions

Don’t Let Income Get in the Way of Making an IRA Contribution

Did you know that even if you have too much income to make a deductible contribution to a traditional IRA, you can still make a nondeductible contribution? There are two main reasons why you would do this: to obtain tax deferral for investments or to make a backdoor contribution to a Roth IRA. Remember, there is nothing in the tax laws that places income limits on eligibility to make nondeductible contributions to a traditional IRA or to convert a traditional IRA to a Roth IRA. It should be noted however, that your nondeductible contribution cannot exceed $5,500 (or $6,500 if age Continue reading Don’t Let Income Get in the Way of Making an IRA Contribution

Feeling Charitable? Make Your Gift Soon!

If you are considering making charitable contributions with some of your retirement money in the near future, you may want to make those contributions before the end of 2017. With the Republican tax reform bill set to become reality, the tax benefits of making such charitable contributions will see a major change in 2018. The bill nearly doubles the standard deduction for both single and married couples, thus limiting the number of people who can itemize starting next year as only people whose total itemized deductions exceed the standard deduction can itemize. The ability to itemize is important because you Continue reading Feeling Charitable? Make Your Gift Soon!