It’s December. A new year is just around the corner. I’m thinking of when I should contribute to my IRA for the next year. In the past, I always contributed the full amount at the first opportunity: January 2. Every year I just moved $5,000 or whatever the limit was for that year from my […]
Deduct-and-Convert: Save Hundreds in State Tax on Roth IRA
If you live in the right state and have the right income, you can save hundreds in state income tax when you contribute to a Roth IRA in a different way.
Inherited IRA and Roth Conversion Pro-Rata Rule
An inherited IRA isn’t yours. It isn’t included in the pro-rata calculation unless you are the spouse of the deceased and you make the inherited IRA your own IRA.
Rollover IRA to Solo 401k
In preparation for converting my non-deductible IRA contributions to Roth IRA, I’m rolling over the pre-tax portion of my traditional IRA to my solo 401k. I set up the solo 401k last year primarily for this purpose — to provide a harbor for my pre-tax IRA money so I won’t get taxed proportionally on my […]
A Non-Deductible IRA Is Worth It For Me
In Alternatives to a High Cost 401k Or 403b Plan , I mentioned non-deductible IRA as one of the options. If you are not eligible to contribute to a Roth IRA, you can still contribute to a Traditional IRA. Even though the contributions are not tax deductible, the money in the IRA still grows tax […]
Alternatives to a High Cost 401k Or 403b Plan
This is a common problem: you have a 401k or 403b plan at work, but the plan isn’t very good. All the investment options in the plan have high expenses. The plan itself may also have some hidden fees. If the plan has a match, you contribute enough to get the full match. That’s a […]
Calculator for 401(k), Roth IRA, then Back at 401(k)
[Last updated on July 10, 2008 with 2008 tax year IRA contribution limit.] I searched on the Internet for a calculator that implements the strategy outlined in my previous post 401(k), Roth IRA, then Back at 401(k). But to my surprise I couldn’t find any. There are calculators for 401(k), calculators for Roth IRA, but […]
401(k), Roth IRA, then Back at 401(k)
Money magazine published a list of 25 Rules to Grow Rich By. A few rules are a little silly, for example, Rule #22: Resist the urge to buy the latest computer or other gadget as soon as it comes out. Wait three months and the price will be lower. Three months! Gosh, stop buying those crap […]