Just when the stock market got a little more interesting, it was quickly over. We are back to Bitcoin and a mobile chatting app worth $19 billion. At least I was able to get my 2014 IRA contribution into the Vanguard Total International Stock Index Fund in the last week of January at a slightly lower price than when the year started.
Jim Blankenship at Getting Your Financial Ducks In A Row reported a recent tax court ruling on IRA rollovers in The One-Rollover-Per-Year Rule: Revised. The tax court said the limit on the frequency of rollovers applies to all IRAs, not per IRA.
Note this is about IRA-to-IRA indirect rollovers, when you take money out of an IRA into your personal account before you re-deposit the money to another IRA within 60 days. It doesn’t apply to merely forwarding a check made out to the new custodian FBO your name. It doesn’t affect rollovers between two qualified plans, between a qualified plan and an IRA, or IRA-to-IRA direct rollovers (technically called transfers).
I’m not surprised by the rule change. The IRS is supposed to treat all IRAs of the same type as one, regardless who hold them for you. It follows then “one indirect rollover per year” would apply to all your IRAs. The same rule also exists in HSAs and 529 plans for the same beneficiary. The best way to avoid the issue is to always do direct rollovers.
I also read these interesting articles this week:
The Magic of One Percent by Paul Merriman at Sound Investing
By coincidence the going rate for a financial advisor managing someone’s investments is also 1%. Don’t ever settle for 1%. Strive for 0.1% if you need help.
The Higher Your Income, The More Obliviously You Should Invest by Jim Dahle at Oblivious Investor
Read the concluding paragraph twice. Investing obliviously doesn’t mean handing over your investments to someone else in order to free up your own time. Doing it right saves both time and money.
Getting Paid to Save for Retirement With the Saver’s Credit by Michael at Financial Ramblings
You get Saver’s Credit when you have other sources of money that don’t count as income. I will try to qualify for it after I retire, just for kicks. See previous articles: Saver’s Credit Plays Hard to Get and Happy Trails With Income Poor.
10 Free Resources to Learn a New Language On the Cheap by Matthew Amster-Burton at MintLife
I put “learn Spanish” on my post-retirement to-do list.
TIAA Direct Finally Accepting New Customers But Rates Are Disappointing by Ken Tumin at DepositAccounts.com
Banks make money from lending the money out. All the savings account rate leaders have an obvious out for the money:
- American Express, Barclays, Capital One, Discover: fund credit card receivables
- Ally: fund auto loans
- CIT: lend to businesses
- GE: consumer financing
Who borrows from TIAA-CREF?
Beware the End-of-Year 401(k) Match by Ron Lieber at New York Times
I wouldn’t worry much about it. Having the match at the end of the year versus getting it throughout the year makes little difference over the long run. If you find a better job opportunity, don’t let the unpaid match stop you from pursuing career advancement.
Spirit Airlines Taps A Nation Of Hate Fliers by Jacob Gldstein and Zoe Chace at NPR Planet Money
This is another example for not taking what people say too seriously. Observe their actions. People say they hate big banks. Then they keep using those big banks anyway.
[Photo credit: Flickr user Abul Hussain]