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IRA Plans
Tax-advantaged retirement savings plans including the traditional IRA, Roth IRA, SEP IRA, SIMPLE IRA, and self-directed IRA
886 Questions
Yes, you can do this under current IRS rules. The rules behind this are fairly complicated, but it's allowable (maybe the correct term is that it's not disallowed).
You took 10000 from an IRA Can you use income averaging?
No. Income averaging was removed from the Tax Code in 1986, except for farmers.
Can you change a CD to a regular IRA?
If the CD is already in an IRA account, you can transfer it to any other IRA account that will accept your CD. However, unless you have a brokered CD, it ordinarily can't be transfered to another bank or to a brokerage. If you have an ordinary CD that you bought at a bank, it has to stay in the same bank.
If the CD is not in an IRA account, you cannot put it into an IRA account. Only cash (including checks, money orders, and electronic funds transfers) can be contributed to an IRA. If you are eligible to put money into an IRA, you will have to wait until the CD matures and cash it out or cash it out early and pay a penalty. Then you can use the cash to make a contribution to an IRA subject to the usual annual limits on contributions.
Do you have to pay fica when taking an IRA distribution?
No. IRA distributions may be subject to income tax only.
Are the profits for selling covered calls in a taxable brokerage account considered earned income?
Not unless you are a professional trader.
If you are a professional trader, you would know it.
How do you convert 401k to self-directed IRAs?
The best option usually is to do a direct roll-over from the 401k to an IRA. You can get forms from your 401k company or the new financial institution where you want to put your money. If you do not already have an IRA, the 401k company can help you set up an account.
Can you roll a Canadian Registered Retirement Savings Plan to a US IRA?
the IRS does not recognize a Canadian registered retirement account as a IRA account better to leave it in Canada or contribute directly to the IRA from Canada
You have to go to a securities licensed financial expert to set up an IRA :banks , financial advisers investment firms , etc.
What is the maximum 401k contribution per month?
There is no limit set by IRS on a per month basis, however there is an annual limit to your contributions. Some employers do create restrictions on how much of your salary you can contribute, but that varies from employer to employer.
Assuming that you want to maximize your 401k for the year and you want to contribute an even amount per month, then you would contribute $16,500/12 = $1,375 per month. This does not include your employer match.
No. All taxes on interest, dividends, and capital gains in a traditional IRA are deferred. No taxes are due until you withdraw from a traditional IRA, when it is counted as ordinary income (not income which is distinguished by whether it is from interest, dividends, or capital gains), which is taxed based on your adjusted gross income in the year they are withdrawn. If you withdraw before age 59.5, you owe an additional 10% penalty.
Contributions to a Traditional IRA made either in 2008 or on or before April 15, 2009, are deductible from your 2008 taxable income. However, there are limits to these contributions which depend on a host of factors. You cannot contribute more than $5000 total ($6000 if you are age 50 on December 31, 2008) to both a Traditional and Roth IRA. If you make over $105,000/year ($159,000 if married filing jointly), your ability to contribute to a Roth IRA is reduced or eliminated. However, no restriction based on income exists for a Traditional IRA. You can always contribute $5000 (or $6000 if age 50) to a Traditional IRA.
An IRA is an individual retirement Account. A Roth IRA is just a type of IRA. A Traditional IRA is another kind.
They are basically a plan for your savings with heavy restrictions placed on them. The attractive part is that you defer paying taxes on the money deposited in the account until you actually begin to withdraw from the account. The main down side is that there are heavy penalties if you withdraw money before you turn age 59 and a half.
Some different IRA's are.
Savings Incentive Match Planss SIMPLE IRAs are also a group retirement plan. They are easier to establish than a 401(k), but they have lower limits on dollar amounts of contributions than the other group plans. In this type of plan pre-tax money is added and the employer matches this amount, or a portion of the amount. Withdrawals are taxed as regular income, and there will be monetary penalties for early withdrawals. Roth IRA'sA Roth IRA will give possibly tax-free savings and withdrawals. different from a traditional IRA account, you won't get a tax deduction for your contributions. The money grows inside the IRA without needing to pay any taxes on the earnings and growth. There are very heavy restrictions on these accounts. Nondeductible Traditional IRA.this is a tax-deferred savings plan, same as the traditional IRA. However, money you contribute is not tax-deductible. The money grows tax-deferred. When you begin to remove money from the account, part of it will be the tax free original contribution, and the rest will be taxable interest. Simplified Employee Pension IRASEP's are a kind of group retirement plan. your employer starts a SEP plan, and then puts money into a regular IRA set up inside the SEP plan. SEP IRAs will allow for higher contribution limits than regular IRA's.Additions are made with pre-tax money, withdrawals are taxed as ordinary income, there are penalties for early withdrawals.
What is the abbreviation 'fbo' in banking?
It stands for "For Benefit Of" - just additional information on who the account is for or where it is going in some transfers/rollovers/etc.
You maxed out your 401K in 2008 how much can you contribute to a roth IRA in 2008?
Roth IRA contributions are not affected by 401k contributions in any way. The max contribution for 2008 was $5000 ($6000 if age 50 or above).
This is of course assuming you fall within income requirements for a Roth IRA.
The tax laws on this change very often, you will need to consult a CPA or an attorney.
An inherited IRA is just inherited money. You have to have a work history to have an IRA. It is not transferable from one person to the next.
Inheritance taxes will come into questions. When all is said and done, you can purchase what you want, after the taxes are paid.
Does an IRA CD qualify for the federal income tax deduction as an IRA contribution?
It qualifies you as someone who supports terrorism. You won't get a deduction on your taxes, but you may get an extended holiday in Cuba! :)
This is no small indiscretion! It is a big time problem and likely criminal.
While there may well be actions you could take on your own, my experience has been that something like this can be messy in the extrordinary. And frankly, regardless of legal protections, you probably don't want to be the known as the whistleblower - as it will likely make continued work, and certainly any real future, very difficult. New employers aren't wild about whistleblowers either...and it has the habit of somehow getting around.
However, no question this is something you need to act on. It may be reasonable to find an employment lawyer in your area who is interested. (They frequently come in 2 varities...ones that specialize in handling the Cos side and ones that handle the employee cases). Any should be interested, and if whzt your saying is true, will probably be able to assure that you won't be charged for his actions, and as he may well be able to end up representing the entire employee group...looks at it as a decent fee opportunity. He should be able to make sure ducks are in order, and perhaps keep you unnamed, and getting the many auhtorities involved to fix it.
Yes, (presuming it wasn't a Roth) - the amount you took out is a taxable income (you didn't pay tax on that income, or the earnings when you contributed it or it grew)...and the penalty for early withdrawal is additional. Normally, by the time your done with doing this...(and I'll bet there were many forms you were required to sign advising you of all this - and probably even saying it is considered a terrible, maybe the worst financial thing you can do)...you'll get maybe 50% of the amount in the account and lose all the needed retirement protection.
Can you have both a Simple Ira and Roth Ira?
Yes, the limitation does not apply between a SIMPLE IRA and a Roth/Traditional. However, because a SIMPLE IRA is a "qualified retirement plan" offered by your employer, you may not be able to get a traditional IRA deduction- all depends on your income situation.
What are the 2009 IRA contribution limits?
The 2009 traditional IRA and Roth IRA contribution limits for those eligible to contribute to these IRA's is $5000 for those under age 50 and $6000 for those aged 50 and over. These are the the maximum combined totals you can contribute to both types of accounts.
Maximum yearly contribution roth IRA for 2008?
The below is from the publication I provided the link too..which may be easier to read that this, especially if the formatting doesn't hold here. Chap. 2 has the specifics on this. The contribution limit for Roth IRAs generally depends on whether contributions are made only to Roth IRAs or to both traditional IRAs and Roth IRAs.
IF you have taxable compensation
and your filing status is ... AND your modified AGI is ... THEN ... married filing jointly or
qualifying widow(er)less than $156,000 you can contribute up to $4,000 ($5,000 if you are age 50 or older) as explained under How Much Can Be Contributed.at least $156,000
but less than $166,000 the amount you can contribute is reduced as explained under Contribution limit reduced.$166,000 or more you cannot contribute to a Roth IRA. married filing separately and
you lived with your spouse at any
time during the yearzero (-0-) you can contribute up to $4,000 ($5,000 if you are age 50 or older) as explained under How Much Can Be Contributed.more than zero (-0-)
but less than $10,000 the amount you can contribute is reduced as explained under Contribution limit reduced.$10,000 or more you cannot contribute to a Roth IRA. single,
head of household,
or married filing separately and
you did not live with your spouse
at any time during the yearless than $99,000 you can contribute up to $4,000 ($5,000 if you are age 50 or older) as explained under How Much Can Be Contributed.at least $99,000
but less than $114,000 the amount you can contribute is reduced as explained under Contribution limit reduced.$114,000 or more you cannot contribute to a Roth IRA. Note. You may be able to contribute up to $7,000 if you participated in a 401(k) plan maintained by an employer who went into bankruptcy in an earlier year. See Catch-up contributions in certain employer bankruptcies, later.
For 2008, the amounts in Table 2-1 increase. For 2008, your Roth IRA contribution limit is reduced (phased out) in the following situations. * Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $159,000. You cannot make a Roth IRA contribution if your modified AGI is $169,000 or more. * Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. * Your filing status is different than either of those described above and your modified AGI is at least $101,000. You cannot make a Roth IRA contribution if your modified AGI is $116,000 or more.
Roth IRAs only. If contributions are made only to Roth IRAs, your contribution limit generally is the lesser of: * $4,000 ($5,000 if you are age 50 or older), or * Your taxable compensation. This limit may be increased to $7,000 if you participated in a 401(k) plan maintained by an employer who went into bankruptcy in an earlier year. For more information, see Catch-up contributions in certain employer bankruptcieslater. However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained later under Contribution limit reduced.
Roth IRAs and traditional IRAs. If contributions are made to both Roth IRAs and traditional IRAs established for your benefit, your contribution limit for Roth IRAs generally is the same as your limit would be if contributions were made only to Roth IRAs, but then reduced by all contributions for the year to all IRAs other than Roth IRAs. Employer contributions under a SEP or SIMPLE IRA plan do not affect this limit. This means that your contribution limit is the lesser of: * $4,000 ($5,000 if you are age 50 or older) minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs, or * Your taxable compensation minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs. This limit may be increased to $7,000 if you participated in a 401(k) plan maintained by an employer who went into bankruptcy in an earlier year. For more information, see Catch-up contributions in certain employer bankruptcies later.
