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Traditional Ira

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By Neil Downing and Neil Downing,PROVIDENCE JOURNAL | March 19, 2000
Q. I've switched to a Roth and did so in 1999. I'm wondering if I can get out of this and go back to a regular deductible IRA. --R.S., Bend, Ore. A. Yes. You have until Oct. 16 to switch back to a traditional Individual Retirement Account (IRA), said Ed Slott, a certified public accountant in Rockville Centre, N.Y. Your question suggests that you took money (or other assets) out of your traditional IRA last year and put it into a Roth IRA. When you make such a move, known as a conversion, you trigger federal income-tax consequences.
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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 | 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 | April 3, 2012
Give anyone age 40 and older a time machine and they would likely go back to their early 20s — to open an IRA. That's because by 40, many of us have learned the miracle of compound earnings over time. We kick ourselves for not socking away even tiny sums in a tax-sheltered individual retirement account when we were younger. Consider the math: A 22-year-old who invests $100 a month in an IRA for 10 years and then stops will end up with more money at age 65 than a 32-year-old who saves $100 a month in an IRA for 33 years.
BUSINESS
By Humberto Cruz and Humberto Cruz,Tribune Media Services | May 20, 2007
I opened a traditional IRA in 1992. I now live with my husband and two children in North Carolina. We started a small business and lost quite a bit of money but finally have more than we need to live on. However, I'm confused as to how to save for retirement. If I understand correctly, we are not eligible to contribute to a Roth IRA because our income is too high. I did not make regular contributions to my traditional IRA, so it's still small. What do we do? Fund traditional IRAs? I am still self-employed, and my husband's company has a 401(k)
BUSINESS
By Humberto Cruz and Humberto Cruz,TRIBUNE MEDIA SERVICES | August 19, 2007
Last month, I sold all the shares of a couple of stock mutual funds in my traditional individual retirement account and used the money to buy bonds for the IRA. That same day, I used some of my cash reserves to buy the exact number of shares of the same stock funds in a taxable account outside the IRA. While there are no tax consequences now, I figured the switch could save me quite a bit in taxes in the long run. I have since read a paper from a...
BUSINESS
By EILEEN AMBROSE | March 28, 2004
THE INDIVIDUAL retirement account turns 30 this year, but the birthday celebration is likely to pass without a lot of fanfare. IRAs don't seem to generate a lot of excitement among investors these days. The annual contribution limit is smaller than some other tax-deferred accounts. The rules are complicated. Last year's tax law reduced the tax rate on capital gains and dividends, raising the attractiveness of investing outside an IRA. And President Bush has proposed a new account to replace IRAs.
BUSINESS
By Pamela Yip and Pamela Yip,KNIGHT RIDDER/TRIBUNE | August 24, 2003
Everything else being equal, the decision to keep your money in a traditional individual retirement account or a Roth IRA comes down to one question: Do you think your income tax rate will be higher now, when you're working, or later, when you're retired? With the traditional IRA, you invest with pretax dollars, and you're taxed on the money only when you withdraw it in retirement. With the Roth, you invest with after-tax dollars and don't pay any taxes on withdrawals in retirement. Simply put, it's a question of when you pay the taxes.
BUSINESS
By Jeff Brown and Jeff Brown,KNIGHT RIDDER/TRIBUNE | March 4, 2001
How different things were a year ago. All the major stock indexes were soaring, adding to the wonderful gains of 1999. Then, stocks plummeted. As if this weren't bad enough, early in the year many investors converted their traditional IRAs into Roth IRAs, only to see the value of their holdings shrink. Unfortunately, the conversion triggered a tax bill that comes due this spring. Had these folks waited to convert when prices were lower, the tax bite would have been substantially smaller.
BUSINESS
By Mark Ribbing and Mark Ribbing,SUN STAFF | October 3, 1999
One of the most important and complex areas of financial planning is taxation. The manner in which a taxpayer fills out the annual revenue forms can go a long way in determining how much money is left over for other things.The past couple of years have seen the arrival of new tax breaks. The Taxpayer Relief Act of 1997 produced a crop of them, including provisions that deal with education expenses, individual retirement accounts and child tax credits.These breaks are still relatively new, and not always well-understood or fully used by the taxpayers who are eligible for them.
BUSINESS
By Eileen Ambrose, The Baltimore Sun | December 27, 2010
Only four days remain in 2010 — but that's still enough time to make a few financial moves that will not only lower your tax bill next year but help out charities and your retirement. Here's a rundown of some last-minute tax-saving strategies: Charitable donations Make a donation to a charity before year's end, and you can deduct it on an itemized 2010 tax return. Pay with a credit card, and you can claim the deduction for 2010 but won't have to pay the bill until next year. Keep in mind that the IRS no longer just takes your word on small cash donations.
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 | August 2, 2009
What a difference five years -- and a recession -- make. When financial planners were asked in 2004 for the most frequent questions from clients, the queries were largely about investing in real estate, how big of a mortgage they could swing and whether to buy or lease a car. The real estate market has since imploded, and many homeowners and would-be real estate moguls are underwater on mortgages. And the government is now giving money away to get consumers to buy or lease new cars to rescue the auto industry.
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 EILEEN AMBROSE and EILEEN AMBROSE,eileen.ambrose@baltsun.com | September 9, 2008
This is a tough job market and a rough economy. No one knows that better than Kim and Millicent Elsmo. The Crownsville couple lost their jobs last year. Kim Elsmo, 60, worked in shipping and receiving. His wife, Millicent, was a corporate real estate manager whose job was outsourced to another company. Like others in their situation, the couple spent the little savings they had in their 401(k)s and borrowed from family. And Millicent, 57, tapped her Individual Retirement Account early this year to pay off debt and meet living expenses, including some big premiums to maintain coverage under her former employer's insurance plan.
BUSINESS
By EILEEN AMBROSE and EILEEN AMBROSE,SUN REPORTER | May 11, 2006
Individuals shut out of the Roth IRA because of their high income could participate in the popular tax-free retirement account under the federal tax-cut plan facing Congress, financial experts said. The legislation eliminates income limits for those converting a traditional individual retirement account to a Roth beginning in 2010. Currently, singles and married joint filers with adjusted gross income of up to $100,000 can convert one IRA to another. The change means that high-income individuals could open a traditional, nondeductible IRA - which has no income limits for eligibility - and then turn around and convert it to a Roth.
BUSINESS
By Neil Downing and Neil Downing,PROVIDENCE JOURNAL | April 13, 2003
I've received a letter from my bank telling me that I must begin to withdraw my IRA. I am a person who was born on July 26th, 1932. I'm still employed; I work for myself as a real estate appraiser; I am constantly at work . . . I say I won't be 70 until July 26th of 2003, and 70 1/2 would be later. It is prudent to be thinking about this, said Marvin R. Rotenberg, national director of retirement services at Fleet Bank's Private Clients group, and a widely regarded authority on IRAs and other retirement plans.
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