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I’ve dedicated a lot of time to the Roth IRA and referenced the traditional (or regular IRA) many times… its about time I took a closer look at the traditional IRA. Individual Retirement Accounts are primarily self directed savings and investment accounts, as opposed to employee benefit plans.

IRA contributions

Anyone who has earned income and has not reached age 70 1/2 may make contributions to an IRA. If a husband and wife both have earned income of $4,000 or more, both can contribute up to $4,000 to an IRA. If one spouse is working and the other is not, as long as the total earned income is above $8,000, the working spouse may contribute up to $4,000 on behalf of the non working spouse.

Continue Reading “Tenets of a Traditional IRA”

Currently, if your AGI is less than $100,000 annually you are eligible to convert your regular IRA to a Roth IRA.

Unfortunately, for a married couple with dual incomes, making 105K, you can’t convert to a Roth IRA because you make too much money. You’re barely crossing the eligibility threshold and it just doesn’t seem fair. That’s an especially hard pill to swallow.

As I’ve written before that’s all changing in 2010 when the 100K AGI restriction is lifted. Gone. Goodbye. In the meantime, there are still a couple things you can do now to get ready…

Continue Reading “The Secret to Funding a Roth IRA, regardless of your income!”

I am a huge advocate of the Roth IRA… I believe if you can afford to convert an existing IRA to a Roth then you should have done it yesterday.

A bit of a refresher here, monies in both accounts grows tax deferred and when its time to take it out:

• the traditional IRA is fully taxed
• the Roth IRA monies are 100% TAX FREE

Some taxpayers are currently not eligible to convert a traditional IRA to a Roth IRA but those rules are changing in the very near future.

Lets take a closer look…

Continue Reading “Interested in the Equivalent of a Tax Free Loan in 2010?”

The title for this post was inspired by the ‘computer for every child’ program. This fantastic program aims to give every child in the world access to the internet.

Nicholas Negroponte is the co-founder of MIT’s Media Lab and is working on a way to mass produce laptops for $100 a piece.

The goal is to sell them to developing countries on the cheap and give the world’s poorest children access to something we all get to use everyday. Here’s a link to read more about it.

Continue Reading “A Roth IRA for every American!”