Do you have after-tax dollars in your IRA? This could be from making nondeductible contributions to your IRA or rolling over after-tax funds from your company plan to your IRA. If so, you will want to know about the pro-rata rule.
Question:
My wife and I could not open Roth IRA accounts in the past because our combined household earned income was always above the allowable exclusion limits. I recently retired in June of 2017 at the age of 63 and my wife being 10 years younger will continue to work presumably for the next 10 years.
There’s an old saying that being close only counts in horseshoes and hand grenades. Such is the case with the U.S. Tax Code. In this arena, deadlines and timing really matter. Trying to do a 60-day rollover 61 days after the actual receipt of withdrawn funds doesn’t work.
Not all contributions to IRAs belong there. When a contribution is not permitted in an IRA it is an excess contribution and needs to be fixed.
Hi,
I have a friend, 45 years old, who has both an individual Roth IRA and an individual rollover IRA. The Roth is over 5 years old. He would like to know if he can use either to pay off a debt he incurred several years ago.
Contributing to a Roth IRA is generally considered to be a good idea. But not everyone is eligible to make an annual contribution. We have seen several cases recently of individuals who contributed for many years until they discovered they were not eligible to make any Roth contributions. Here is what you need to know.
As Americans live longer, more are eventually coming to need long-term nursing home care. The cost of this can be devastating to a family. Nursing home care now costs an average of over $85,000 per year, and much more than that in some parts of the country.
For years there has been concern by some planners that a back-door Roth conversion might be considered a step transaction by IRS. Most planners, however, did not feel that a back-door Roth fit all the criteria of a step-transaction.
Question:
Can you do trustee-to-trustee transfer from an Annuity Trad IRA to Mutual Fund Trad IRA?
Every retirement plan custodian has an interactive website that participants can visit, if their employer offers that feature. While all are a little different, the websites all contain access to vital information about your account under the plan.
