Mar 17, 2011 | Blog
I’ve been a CPA for over twenty years. Recharacterizing a Roth is one of only a few instances that I can think of where the IRS allows you to make a decision (convert from Traditional IRA to a Roth IRA), wait what could be well over a year to see how your newly converted Roth IRA performs, and if you don’t like your decision, change it back (recharacterize).
Mar 17, 2011 | Blog
As 2010 is comes to a close, we all begin to look ahead to 2011. For retirement plans, the landscape in 2011 will look much like 2010. The new contribution limits largely remain unchanged. In calculating these, IRS compares the official cost of living increase from September of 2010 to September of 2009. In reviewing these limits, some definitions and rules need to be kept in mind.
Nov 22, 2010 | FAQ, Knowledge Portal, Traditional IRA Information
Source: www.irs.govA traditional IRA is any IRA that is not a Roth or SIMPLE IRAWho Can Set Up a Traditional IRA?You can set up and make contributions to a traditional IRA if:You (or, if you file a joint return, your spouse) received taxable compensation during the...
Nov 22, 2010 | Knowledge Portal, Roth IRA Information
Source: www.irs.gov A Roth IRA is an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA. You cannot deduct contributions to a Roth IRA. If you satisfy the requirements, qualified distributions are tax-free. You can make...
Nov 22, 2010 | FAQ, Knowledge Portal, SIMPLE IRA Information
Source: www.irs.gov A SIMPLE IRA plan is a Savings Incentive Match PLan for Employees. Because this is a simplified plan, the administrative costs should be lower than for other, more complex plans. Under a SIMPLE IRA plan, employees and employers make contributions...
Nov 22, 2010 | FAQ, Knowledge Portal, SEP IRA Information
Source: IRS.gov A SEP is a simplified employee pension plan. A SEP plan provides employers with a simplified method to make contributions toward their employees’ retirement and, if self-employed, their own retirement. Contributions are made directly to an Individual...
Nov 22, 2010 | Coverdell Education Savings Account Information, FAQ, Knowledge Portal
Source: www.IRS.gov IRS TAX TIP 2008-59 A Coverdell Education Savings Account (ESA) is an account created as an incentive to help parents and students save for education expenses. The total contributions for the beneficiary of this account cannot be more than $2,000...
Nov 22, 2010 | FAQ, Knowledge Portal
Source: IRS.gov www.irs.gov Generally, compensation is what you earn from working. For a summary of what compensation does and does not include, see Table 1-1. Compensation includes all of the items discussed next (even if you have more than one type). Wages,...
