IRS Releases Tax Statistics For 2006
The U.S. Internal Revenue Service recently released statistics for the 2006 tax year, based on 138.4 million individual income tax returns. Here are ...
Financial Crisis Testimony From Secretary Geithner March 3, 2009
U.S. Treasury Secretary Tim Geithner Written Testimony -- As prepared for delivery House Ways and Means Committee Hearing March 3, 2009 Chairman R...
Can You Write Off IRA Losses?
You generally cannot write off stock losses in an IRA retirement account. You also cannot make up for a stock loss in a Roth IRA retirement account. The goverment doesn't allow you to make up for bad investments.
Choosing 401K Funds
When choosing funds for a 401K retirement plan, you can use a variety of planning programs on the internet: Morningstar, U.S. News & World Report or Quicken. One of the top investment choices for a retirement plan are mutual or index funds. Vanguard is the oldest of the index funds and is the cheapest.
Retirement Plan Diversity
When setting up a retirement plan, you should always be sure you have a diverse set of investments. You should never put all your retirement money in one place, like an employee stock option program. That is dangerous given the economy. Instead, you should put money in a Roth IRA or a conventional IRA which you have control over.
401K High Front Load Funds
If your employer's 401K retirement plan's only option for investment is an expensive 6% front load fund, you should gather your colleagues together and demand better choices. Do some research and identify other places to invest your cash. Then petition your employer to make this change. Once this is done, resume adding as much as you can to your 401K retirement plan.
Roth IRAs For College Saving
You can use your 401K retirement plan to help save for college by rolling the money into a Roth IRA. The money in a Roth IRA grows tax free and you are able to withdraw your earnings after five years to pay for tuition expenses. A Roth IRA is also a good way to save for college because it keeps the money in your control.
Roth IRA Eligibilty
If you work part-time or freelance, you are still eligible to open a Roth IRA and contribute up to the amount earned in a given year for your retirement. If your company does not provide a 401K retirement plan, you may be eligible for a conventional IRA. A good place to open up a Roth IRA is with Vanguard and then put your cash into their S & P Index Fund.
401K Loans
If you have money saved in a 401K retirement plan, you may be able to take out a loan on that money. However, if you are less than 59 1/2 years old, you will pay a penalty on the amount plus taxes. Avoid taking out a loan from your 401K retirement plan to pay down credit card debt. If your 401K retirement plan is canceled, avoid touching the cash - roll it right over into an IRA instead. When transferring 401K retirement plans from one employer to another, you have to pay back any 401K loans - otherwise they are considered a distribution and you will owe taxes along with a penalty.
Maxed Out 401K Options
If you've maxed out your 401K retirement plan at work, you have a few options for opening an IRA depending on your income level. You're only allowed to contribute to a conventional IRA if you have a low income. To open and max out a Roth IRA for retirement, your income has to be under $95,000 if you're single, $160,000 if you're married.