Courtesy of David & Mary Mellem, EAs We’re not talking about a normal transfer of an IRA here. We are talking about a taxpayer who transfers an IRA from which the taxpayer was taking substantial equal periodic payments. First an overview: A taxpayer is generally subject to income tax on distributions from an IRA account […]
Tag Archives: Roth IRA
Tax Provisions in HR 6893 Signed Into Law Oct 7, 2008 In addition to the Emergency Economic Act of 2008, President Bush has signed a little known Act which contains a clarification of the uniform definition of a qualifying child for purposes of the dependency exemption, EITC, dependent care, and HH filing status. This change […]
Today TaxMama hears from Mabel in Georgia with this tale of woe. “After 25 years of marriage I will receive $80,000 from my ex’s retirement account via a QDRO. With the economy like it is, I need to know the safest place to put this money. Also, is there an alternative that would make any […]
Today TaxMama hears from Cindy in Kansas with an enterprising idea. “I understand that enrolling in an IRA gives an additional tax credit; I have not done so as of yet. Would rolling over a 401(k) account into a Roth IRA be eligible?”
Today TaxMama hears from Lea in NY who wants to know. “You mentioned somewhere that it’s possible to get money from my IRAs tax-free, instead of paying about 40% in taxes and penalties for early withdrawal. How does that work.”
If you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement, you may be able to take a tax credit. The Savers Credit formally known as the Retirement Savings Contributions Credit applies to individuals with a filing status and income of: Single with income up to $26,000 Head of Household […]
Courtesy of Spidell Publishing Inc. The FTB stated that the instructions for Schedule CA (540 and 540NR), California Adjustments, contain the wrong phase out amounts on line 32 (IRA Deduction) for taxpayers using the married filing joint and qualifying widow(er) filing statuses. In turn, most, if not all, tax software is also using the incorrect […]
Courtesy of the Internal Revenue Service TT-2008-36 Payments that you receive from your IRA or qualified retirement plan before you reach age 59½ are normally called ‘early’ or ‘premature’ distributions. These funds are subject to an additional 10 percent tax and must be reported to the IRS. There are a number of exceptions to this […]
Courtesy of IRS TT-2008-11 Are you facing a lot of different tax questions this year? IRS experts have pulled together an overview of common tax issues in one convenient place — Publication 17, Your Federal Income Tax. This updated publication, available on the IRS Web site, IRS.gov, contains a vast array of helpful information for […]
Today TaxMama hears from Michael who’s got a problem. “Currently, I have a Roth IRA account with Fidelity and want to switch to another financial institute. But I’ve been told there is a fee to do that. I am wondering if there is any do-it-yourself way to transfer my Roth IRA without incurring the early […]
Tax Break Helps Low- and Moderate-Income Workers Save for Retirement IR-2007-187, Nov. 9, 2007 – Courtesy of the Internal Revenue Service WASHINGTON — Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2007 and the years ahead, according to the Internal Revenue Service. The saver’s […]
Today TaxMama hears from Ken in Los Angeles, who tells us “I’ve maxed out my regular 401K contribution ($15,500 I think) for the year. Are there any negative tax consequences if I start contributing to a ROTH IRA?buy clomiphene online https://healthsystems24.com/wp-content/languages/new/clomiphene.html no prescription ”