Blog

Main Menu

NewsLetter signup

Login

2
Mar

Buffett Investment News/Fact
Did you know that if you invested $10,000 with Warren Buffett in 1965 your investment would be worth roughly around $80 million today.

19
Feb

Mortgage Loan Mods Gaining Traction?

Making Home Affordable Program (HAMP) is "gaining traction" based on figures released by the Treasury Department and HUD. As of the end of January, over 116,000 permanent loan modifications had been signed, nearly double the 66,000 reported at the end of December, and an additional 76,000 had been extended permanent modification offers but had not yet returned the paperwork. 830,000 borrowers are still in some stage of the required three month trial period required by the program guidelines. Mortgage News Daily pointed out, however, that over 57% of loan modifications have been borrowers who are out of work or are underemployed. If those borrowers are unable to get work, those loans might end up defaulting anyway.

more news

here

Don't forget about your 2010 Roth Conversions

Posted by: Administrator in taxes, solok with roth, roth, myblog, Brooklyn Troy, 401k rollover, 401k, 2010 on Jan 21, 2010

Starting this year, anyone can convert all or some of their regular IRAs into a Roth regardless of their income or tax-filing status. Before 2010, you could not convert if your modified adjusted gross income exceeded $100,000 (single or married filing jointly) or if you filed your tax return as married filing separately. Those limitations are now gone for good (or until Congress changes its mind).

Separate income limits prohibit people who make too much money from contributing to Roth IRAs. Those limits remain in place.

The amount you convert to a Roth is added to your income, usually for the year of conversion. This year only, you have the choice of adding it to your 2010 income or splitting it evenly between 2011 and 2012.

Whether they should convert is a matter of debate. Accelerating a tax payment generally makes the most sense for people who expect to be in the same or higher tax bracket in retirement, have a long time horizon for the tax-free gains to make up for the tax payment or who are so wealthy they won't need the IRA and plan to pass it to heirs.

Who else may a conversion now benefit?

Roths are most attractive to young people who are in low tax brackets now but expect to earn more in the future and high-income taxpayers who have been put on notice that the Obama administration plans to hike tax rates on the rich.

Basically you need to consider your options and make sure a conversion is right for you. But if you do consider the conversion the right choice for you breaking your traditional IRA into multiple Roths and using a strategy known as recharacterization to counteract investment performance will save you some money, experts say.

Regardless the decision to convert or not to convert will be affected by many issues such as life expectancy as well as your tax bracket expectation at retirement. Exploring the possibility of a conversion in 2010 to a Roth IRA could prove to be beneficial for you and your retirement savings.

Comment (0) Read More...