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Roth Ira

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BUSINESS
Eileen Ambrose | April 3, 2012
My column today focused on a poll by Baltimore'sT. Rowe Price that found younger investors less inclined to invest in an individual retirement account this year. If anyone can benefit from a tax-sheltered IRA, it's younger investors who have the time to see their earnings compound over time.. But if younger investors need another reason to invest in a Roth IRA, here it is: $133,063. That's how much in taxes you can avoid on your nest egg by going with the Roth. There are two types of IRAs: A traditional IRA that allows investors within certain income limits to deduct their contributions on their tax return.
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BUSINESS
By Eileen Ambrose, The Baltimore Sun | January 30, 2013
Tax season officially kicks off Wednesday, later than usual because lawmakers only this month passed legislation to address expired tax cuts. The IRS needed time to update its forms and systems. Not a problem for procrastinators, but a problem for others used to the tax season starting in mid-January. "It is very painful and very inconvenient" for early filers counting on refunds to pay off holiday credit card bills or other debt, said Mark Steber, chief tax officer for Jackson Hewitt Tax Service.
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BUSINESS
By Humberto Cruz and Humberto Cruz,Tribune Media Services | July 8, 2007
Among the multitude of ideas that readers have submitted for building an emergency fund, here's an intriguing one: Use a portion of your Roth individual retirement account. Although I have misgivings about it, the concept is worth a look. "My wife and I have an emergency fund equal to three-fifths my annual salary," said Robert Jones, a reader from Pennsylvania. "We keep it in a bond mutual fund as part of our regular brokerage account. We also have Roth IRAs with the same broker. "Might we be better off keeping that emergency fund as part of our Roth IRAs?
BUSINESS
Eileen Ambrose | April 3, 2012
My column today focused on a poll by Baltimore'sT. Rowe Price that found younger investors less inclined to invest in an individual retirement account this year. If anyone can benefit from a tax-sheltered IRA, it's younger investors who have the time to see their earnings compound over time.. But if younger investors need another reason to invest in a Roth IRA, here it is: $133,063. That's how much in taxes you can avoid on your nest egg by going with the Roth. There are two types of IRAs: A traditional IRA that allows investors within certain income limits to deduct their contributions on their tax return.
NEWS
By Charles Lane | May 4, 1998
HAVE you set up a Roth IRA yet? If you haven't, it can't be for lack of marketing effort by the financial services industry. Since Jan. 1, when the new tax-free savings accounts became available, every other piece of junk mail at my house has been a Roth IRA come-on. The personal-finance magazines are filled with articles about this "revolutionary" way to save.Permit me to rain a little skepticism on the revolution. I have no idea whether the Roth IRA is the appropriate savings vehicle for you and your family -- as they say in Money magazine.
BUSINESS
By Julius Westheimer | July 9, 1999
SUGGESTIONS to increase your money:"Most people know the Roth IRA is a great retirement tool, but it's even more valuable for estate planning," says Worth magazine. "Roth assets are included in your estate but, unlike the beneficiary of a regular IRA, a Roth beneficiary avoids income taxes after estate taxes are paid. The Roth creates a powerful method of moving assets from one generation to another.""If inflation worries you, buy Treasury inflation-indexed bonds," says Kiplinger Finance Adviser.
BUSINESS
By Jane Bryant Quinn | August 18, 1997
SO NOW you have three Individual Retirement Accounts to choose from. Or at least you will have, starting next year. Which one looks best? In almost all cases, the new Roth IRA wins the day.In case you're wondering, it's named for Sen. William V. Roth Jr. of Delaware -- by odd coincidence, the chairman of the Senate Finance Committee.Whether to sign up for this IRA is a no-brainer. If you qualify, just say yes. You put away up to $2,000 annually after tax ($4,000 per couple), hold for five years, then never pay a nickel of federal tax on the money you earn -- if it's spent on your first house or after you reach 59 1/2 . It's also free when used if you're disabled or die.What if you unexpectedly need money for some other purpose?
BUSINESS
By JANET KIDD STEWART | September 2, 2007
Friends who are 70 1/2 are receiving their minimum distribution and investing each year in a Roth IRA even though they don't have any earned income. Can I do this? -- Patricia Kunkel, Cleveland You need earned income to contribute to a Roth individual retirement account, but your friends may be doing something a little different, said Julie Schatz, a financial planner with Investor's Capital Management Inc. in Menlo Park, Calif. They may be withdrawing funds from a 401(k) or traditional IRA to satisfy their required minimum distributions and paying the tax on that money, then withdrawing even more from their accounts, paying the owed income tax and converting that additional money to a Roth account, which is legal, she said.
BUSINESS
By Ilyce Glink | September 7, 2008
I am 61 years old and have about $500 a month to use either in funding my Roth IRA or paying down my mortgage. Currently, my mortgage is for 15 years at 5.81 percent. I plan on retiring in June 2009. Which should I do? Hands down, fund your Roth IRA. Here's why: The interest rate on your loan is so cheap, so it isn't costing much to borrow the cash. You already have a 15-year mortgage, and while you haven't told me how soon you will pay off this loan, you're already paying down the principal pretty quickly.
BUSINESS
By Humberto Cruz and Humberto Cruz,Tribune Media Services | August 27, 2006
An astute reader uncovered a basic mathematical truth that seems to elude many die-hard Roth individual retirement account supporters: "I've been reading people who sing the praises of Roth IRAs and how they can earn more than traditional IRAs," the reader wrote. "I didn't see how this could be true, so I sat down with a computer spreadsheet program. I put a hypothetical $2,000 into a traditional IRA and figured a 5 percent return per year for 15 years. "After 15 years, I deducted the ordinary income tax (at my 15 percent bracket)
BUSINESS
By Eileen Ambrose, The Baltimore Sun | February 5, 2012
Death and taxes might be certain, but the latter changes each year. Even without major tax legislation — thanks, political gridlock — taxpayers need to be aware of even slight adjustments that could benefit them as they prepare their returns. This season, filers will come across new tax forms, a twist on an education tax break that can benefit parents of high school students, and changes in mileage reimbursements. Here are tips for lessening your tax bite and a suggestion for putting your refund to good use. Consider: First-time homebuyer credit This popular $8,000 credit expired for most people in 2010.
BUSINESS
By Eileen Ambrose, The Baltimore Sun | May 20, 2011
Greetings, Class of 2011. You have worked hard in college these past four years — five or six years for some of you — and are about to enter the real world. That world, as "The Daily Show" host Jon Stewart told College of William & Mary graduates in 2004, is a little different than life on campus. "The biggest difference," Stewart told them, "is you will now be paying for things. " Indeed, finances will play a big role in your life from now on. Two-thirds of you leaving school with a bachelor's degree will be shouldering student loans.
BUSINESS
By EILEEN AMBROSE | January 10, 2010
The buzz in the financial industry right now: Roth IRA conversions. Starting this year, there is no longer an income cap to convert a traditional individual retirement account or 401(k) into the tax-friendly Roth. Essentially, everyone now has access to a Roth. Congress did this to generate tax revenue. Contributions to a traditional IRA and 401(k) are often made with dollars that haven't been taxed yet. When you convert one of those accounts to a Roth, you must pay regular income tax on the amount being converted.
BUSINESS
By Eileen Ambrose eileen.ambrose@baltsun.com | January 10, 2010
The buzz in the financial industry right now: Roth IRA conversions. Starting this year, there is no longer an income cap to convert a traditional individual retirement account or 401(k) into the tax-friendly Roth. Essentially, everyone now has access to a Roth. Congress did this to generate tax revenue. Contributions to a traditional IRA and 401(k) are often made with dollars that haven't been taxed yet. When you convert one of those accounts to a Roth, you must pay regular income tax on the amount being converted.
BUSINESS
By EILEEN AMBROSE | October 18, 2009
Higher-income taxpayers for years have been shut out of the Roth individual retirement account and could only look on with envy. But that's about to change. Next year, everyone will have access - albeit, indirectly for some - to this tax-friendly account. The government next year will eliminate an income cap for those who want to convert a traditional IRA, a 401(k) or other retirement account into a Roth. So, basically, anyone with one of these accounts can open a Roth. And in Maryland, the wealthiest state, this change in the tax law could be a boon for many.
BUSINESS
By EILEEN AMBROSE | April 12, 2009
Joe Cunningham is convinced that income taxes are going up, even for middle-class taxpayers like him. Attempts to fix the economy can't work without an enormous tax increase, the Pasadena retiree says: "It will be on everybody who pays taxes, which ultimately always is the working class or retired working class." For that reason, the 68-year-old wants to convert his traditional individual retirement account to a Roth IRA. By doing so, he'll have to pay regular income tax now on the funds he transfers to the Roth.
BUSINESS
By Gail Marksjarvis and Gail Marksjarvis,Tribune Media Services | July 8, 2007
My wife and I are thinking about opening a Roth IRA - individual retirement account - for our 16-year-old son. I've paid attention, as you have suggested that small savings early in life can turn into million-dollar nest eggs. Is there any reason why we shouldn't open a Roth IRA for our son? - M.H., Allentown, Pa. If you were considering giving your son a Roth IRA as a college graduation gift, it would be a no-brainer. I'd applaud your decision, maybe even nominate you for a "Parent of the Year" award, for providing your son a tremendous head start on his financial future.
BUSINESS
By Liz Pulliam Weston and Liz Pulliam Weston,LOS ANGELES TIMES | June 10, 2001
I contributed to a Roth IRA in 1998, but later undid the transaction when I learned that my 1998 income was over the $95,000 limit for a single person. Recently, I read in a personal finance magazine that in order to establish a Roth, one must receive taxable earned income, and that income cannot include disability payments, earnings and profits on investments or property, interest, dividends, pension and annuity payments, or deferred incentive awards like stock options. If I had not included dividends, capital gains and interest, I would not have exceeded the income cap. It seems to me that I did not have to recharacterize and that my original contribution was fine.
BUSINESS
By Ilyce Glink | September 7, 2008
I am 61 years old and have about $500 a month to use either in funding my Roth IRA or paying down my mortgage. Currently, my mortgage is for 15 years at 5.81 percent. I plan on retiring in June 2009. Which should I do? Hands down, fund your Roth IRA. Here's why: The interest rate on your loan is so cheap, so it isn't costing much to borrow the cash. You already have a 15-year mortgage, and while you haven't told me how soon you will pay off this loan, you're already paying down the principal pretty quickly.
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