A rollover occurs when an individual actually receives a check from an IRA custodian, which is payable to themselves. They physically take possession of the account assets. A transfer and direct rollovers occurs when an individual never actually takes possession of the account assets. The check is either sent directly to the new IRA custodian or the check is sent to the owner, but made payable to the new custodian.
In a rollover, an individual may withdraw all or part of an IRA account and roll it over to another Traditional IRA, or return the proceeds to the IRA account. The rollover or return, however, must be accomplished within 60 days, or it is considered a distribution and subject to taxes and penalties. IRA rollovers can occur only once every 12 months.
Thursday, December 1, 2011
Thursday, November 17, 2011
IRAs for Married People
What happens if one spouse is an active participant in a company-sponsored retirement plan and the other is not,or does not have earned income?
The non-active participant spouse can fully deduct his/her IRA contribution if their joint adjusted gross income is less than $167,000 in 2010 and $169,000 in 2011. The deductibility phases out for married couples with an AGI between $167,000-$177,000 in 2010 between $169,000 and $179,000 in 2011. No dedutions are allowed when AGI is greater than the upper limit.
The non-active participant spouse can fully deduct his/her IRA contribution if their joint adjusted gross income is less than $167,000 in 2010 and $169,000 in 2011. The deductibility phases out for married couples with an AGI between $167,000-$177,000 in 2010 between $169,000 and $179,000 in 2011. No dedutions are allowed when AGI is greater than the upper limit.
Tax Benefits and Penalties of an IRA
Each IRA has its own unique package of benefits. The benefits can include tax-deductible contributions, tax-deferred income and tax-free income. Congress understands the importance of saving for retirement and education, and has established incentives for taxpayers to save for these milestones on their own.
Each IRA has a 10% penalty if certain conditions are not met when money is withdrawn. Also, the withdrawn amount may be included as taxable income. In some situations, after federal and state taxes and the 10% penalty, IRA owners may net or walk away with only about half of the withdrawn amount because of the taxes and penalties incurred.
Each IRA has a 10% penalty if certain conditions are not met when money is withdrawn. Also, the withdrawn amount may be included as taxable income. In some situations, after federal and state taxes and the 10% penalty, IRA owners may net or walk away with only about half of the withdrawn amount because of the taxes and penalties incurred.
Thursday, November 3, 2011
IRA!?
What is a Traditional IRA?
A tax-deferred account where anyone under the age 70 1/2 who has earned income may contribute up to $5,000 annually ($6,000 if over age 50). The penalty for early withdrawal, which is before you are 59 1/2, is ten percent. An exception to this penalty is if the withdrawal is for an education expense or up to $10,000 for your first home purchase.
What is a Roth IRA?
An after-tax contribution to a retirement savings in exchange for a tax free income in retirement. If you think you will be in a higher tax bracket when you retire then a Roth IRA would be the better choice for you. You can contribute 100% of your compensation up to the limits of, single is $5000 and married is $6000. You are able to withdraw any funds tax and penalty free and do not have a minimum contribution amount after you are 70 1/2.
A tax-deferred account where anyone under the age 70 1/2 who has earned income may contribute up to $5,000 annually ($6,000 if over age 50). The penalty for early withdrawal, which is before you are 59 1/2, is ten percent. An exception to this penalty is if the withdrawal is for an education expense or up to $10,000 for your first home purchase.
What is a Roth IRA?
An after-tax contribution to a retirement savings in exchange for a tax free income in retirement. If you think you will be in a higher tax bracket when you retire then a Roth IRA would be the better choice for you. You can contribute 100% of your compensation up to the limits of, single is $5000 and married is $6000. You are able to withdraw any funds tax and penalty free and do not have a minimum contribution amount after you are 70 1/2.
Retirement Opportunities
Investing in your retirement can be very overwhelming. There are so many types of services that are offered but the big question is where do you start?
I would first start asking yourself what sort of lifestyle would you like when you retire? Do you expect to maintain the life you are living now, or do you want to be able to travel and do things that you enjoy, isn't that what retirement should be all about?
Most companies offer a form of retirement plan such as 401k, 403b, and 457b. These are great to take advantage of especially if the company will match your contributions to a certain percent.
Other services offered are Traditional and Roth IRA's that are used for saving for retirement.
I would first start asking yourself what sort of lifestyle would you like when you retire? Do you expect to maintain the life you are living now, or do you want to be able to travel and do things that you enjoy, isn't that what retirement should be all about?
Most companies offer a form of retirement plan such as 401k, 403b, and 457b. These are great to take advantage of especially if the company will match your contributions to a certain percent.
Other services offered are Traditional and Roth IRA's that are used for saving for retirement.
Sunday, October 9, 2011
Mission Statement
Our mission is to dedicate our time and knowledge to ensure your hard earned dollars make the most for what is expected in your future. While doing this providing the best customer service and trusting in you as a client so you can trust in us as your investor.
Sweet Savings, even Sweeter Returns
Candi's Investments is a company that I have created that I hope to use as a guide to my future career. Right now this is a dream that I hope to soon be a reality. I am almost done with my associates degree in Accounting and then I will further my education into Finance. I hope to one day be able to help people get the most out of their investments. I know being younger I do not tend to think about my retirement because it seems so far away, but this is the best time to start. Young investors are the best because they have a lot more time to think about what they want out of life. Starting young gives you more choices too, and allows room to change. I look forward to learning more throughout my education and experience so I can provide the best to my potential future clients.
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