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  • 1. Can I convert my Traditional IRA to a Roth IRA? Views: 96
    Terms of Use Yes, you can convert a Traditional IRA to a Roth IRA. Taxpayers at any income level can convert a Traditional IRA to a Roth IRA. Previously deductible contributions to the converted IRA will need to be reported as taxable income, but the Roth IRA income is tax-free. Since there are some tax consequences, be sure to consult with your tax advisor.
  • 2. What are the rules regarding withdrawals from my 401(k)? Views: 91
    Terms of Use Withdrawals are allowed from your 401(k) plan if they are considered to be a hardship withdrawal and they are allowed by the employer. Employers are not required to provide for hardship withdrawals. The IRS code that governs 401(k) plans provides for hardship withdrawals only if: (1) the withdrawal is due to an immediate and heavy financial need; (2) the withdrawal must be necessary to satisfy that need (i.e. you have no other funds or way to meet the need); (3) the withdrawal mus  More...
  • 3. How do I transfer my IRA from one financial institution to another? Views: 86
    Terms of Use A rollover is when you withdraw funds from an IRA or plan and contribute those funds to the same or another IRA or plan. A trustee-to-trustee transfer (often called a direct transfer or direct rollover) is when you never receive the IRA or plan funds. They are transferred directly from one financial institution to another without you ever touching the money. The general rule is that when you take a distribution from an IRA (or other tax-deferred retirement account) that you in  More...
  • 4. Can you help me understand more about annuities? Views: 71
    Terms of Use: Table of Contents Single vs. Flexible-Payment Annuities Fixed vs. Variable Annuities Fixed and Variable Annuity Expenses Deferred vs. Immediate Annuities Withdrawing Money from a Deferred Annuity Why Buy a Deferred Annuity? Why Buy an Immediate Annuity? Options with Guarantees Before You Buy an Annuity Consider the Following Some Questions to Ask Before Buying Confused about annuities? You're not alone. Many people have difficulty understanding them. The main reason for a  More...
  • 5. What is the deadline for opening and making contributions to an IRA? Views: 61
    Terms of Use You have until April 15th of the year following the tax year to open and fund an IRA.
  • 6. What is AGI and MAGI as it relates to IRAs? Views: 59
    Terms of Use Adjusted Gross Income (AGI) Your adjusted gross income (AGI) is the number at the bottom of page 1 on your income tax return, IRS Form 1040 or 1040A. On Form 1040EZ, adjusted gross income appears on line 4. Specifically, it's your gross income minus so-called above-the-line deductions. These include: deductible IRA contributions (as well as deductible SEP, SIMPLE and Keogh contributions) student-loan-interest deduction deductible contributions to medical savings accounts an  More...
  • 7. Why should I consider setting up a trust? Views: 58
    Terms of Use People often associate trust funds only with the wealthy. But a trust fund ( trust ) actually can be an effective financial tool for many people in many circumstances. A trust is a separate legal entity that holds property or assets of some kind for the benefit of a specific person, group of people or organization known as the beneficiary ( beneficiaries ). The person creating a trust is called the grantor , donor or settlor . When a trust is established, an individual or corporate   More...
  • 8. What is a 401(k) plan? Views: 57
    Terms of Use Definition: A 401(k) is a type of profit sharing retirement plan. These plans allow you to contribute pre-tax dollars and then invest those dollars in the investment options provided by your employer for the purpose of saving for retirement. The earnings on your investments are tax-deferred until retirement. Your employer may also make matching contributions to your account. 401(k) plan highlights: 401(k) Plan Limits 2017 2018 Elective Deferrals $18,000 $18,500 Annual Defined Contri  More...
  • 9. What is a Traditional IRA? Who can contribute and what are the limits? Views: 39
    Terms of Use An IRA is an Individual Retirement Account that provides several tax benefits . IRA accounts can be comprised of fixed income instruments, such as CDs/share certificates, bonds, stocks and mutual funds, to name just a few options. A Traditional IRA enables individuals to save money in a tax-deferred account. What that means is that the earnings from your IRA account will not be taxed until you begin taking money out of the account. Traditional IRA Snapshot Contributions: Tax-dedu  More...
  • 10. What are the tax advantages of a 403(b) plan? Views: 36
    Terms of Use: Contributions are pre-tax and come directly out of your paycheck. Meaning, in the eyes of the government you've actually earned less (your 403(b) contribution is deducted from your earnings) so you are taxed less. A $100 contribution to a 403(b) reduces federal income taxes by roughly $28 (assuming you are in the 28% tax bracket). In effect, your $100 contribution costs you only $72.
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