Post Tagged with: "IRA"

David, George Megan

Fund a Teenager’s Million-Dollar Retirement

We teach teenagers a lot more about sexuality than we do about money. This can confuse them about what they should be learning. Give this article to a teenager and encourage him or her to start a Roth IRA. For a $4,300 gift spread out over the next seven years plus a little work on the teenager’s part, you can fund a teenage child or grandchild’s million-dollar retirement. Here’s how it’s done.

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Roth IRA Recharacterization 2012: Undoing a Roth Conversion

Roth IRA Recharacterization 2012: Undoing a Roth Conversion

Nearly everyone is an excellent candidate for a Roth conversion this year. If you failed to convert money from an IRA to a Roth IRA last year, you missed an opportunity. Don’t make the same mistake this year. You can always undo part or all of a Roth conversion with what’s called a recharacterization, so you can’t convert too much.

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Roth IRA Conversion 2012: A Roth Conversion Calculator

Roth IRA Conversion 2012: A Roth Conversion Calculator

Nearly everyone is an excellent candidate for executing a Roth conversion this year. At the end of 2012, tax rates are going up across the board. With political gridlock and a debt-strapped national government, tax rates are unlikely to be this low again in the near future. Because you can always undo part or all of a conversion with a Roth recharacterization, you can’t convert too much. But it is helpful to have a target amount in mind before you begin.

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Roth IRA Conversion 2012: Are You a Good Candidate?

Roth IRA Conversion 2012: Are You a Good Candidate?

The government gave you a tax write-off when you put money into your individual retirement account (IRA). Now the government can and will be changing the tax rate you have to pay when you withdraw the money. And when you turn 70 1/2, the government requires you to take at least the required minimum distribution (RMD) each year to force you to pay that tax. It is as though your IRA has a mortgage on it and next year the government will be raising the rate you will have to pay. A Roth conversion is like paying off the mortgage on your IRA early at these lower rates in order to own your IRA free and clear.

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The Absolutely Last Chance for a Massive Roth Conversion

The Absolutely Last Chance for a Massive Roth Conversion

A tax tsunami is coming at the end of this year. The higher your adjusted gross income (AGI), the closer you live to the coast where the tsunami will hit. This will be your last opportunity to safeguard your assets in a lifeboat and avoid getting swamped with taxes. If you have an income over $100,000, this is the first year you can take money from your traditional IRA, pay tax as though that money is ordinary income and convert it to a Roth IRA. This procedure is called a “Roth conversion.”

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