DISCOVER THE RETIREMENT BREAKTHROUGH ?THE ROTH IRA!
If you don't know what a Roth IRA is then stop everything, print this article and read it carefully as this will certainly be the most valuable information you read this year. This next retirement account is to your net worth what light bulb was to electricity. Let me tell you about this wonderful financial invention called a Roth IRA!The main difference between the Roth and traditional IRA is that with the Roth you pay taxes first and then make the contribution. This is absolutely fantastic if you make a lot of money in the stock market because you NEVER have to pay even a dime on the capital gains! There are a ton of other advantages to the Roth IRA. Unlike the traditional IRA you can be of any age and still contribute.
You can also make a contribution to a Roth IRA at any time for a particular calendar year up until the due date of your tax return for that year. This means that if you want to make a Roth IRA contribution for 2005, you could make it anytime between January 1, 2005 and April 15, 2006. Another nice feature of the Roth IRA is that your spouse will also qualify for a contribution. There is no tax deduction for Roth IRAs. Contributions are made with money that has already been taxed so there is no immediate tax break.
Don't fool yourself into thinking that this isn't the best thing since the wheel because when Roth money is taken out, it is a tax-free distribution! This type of IRA is ideal for individuals in a lower tax bracket now, but anticipate being in a higher tax bracket at retirement. In other words, if you are in a blue-collar or white-collar middle class family and are learning and practicing good savings and investment habits than this is your retirement life saver!It gets even better; you may make contributions at any age, even after you reach 70?. You must have your Roth account open for at least five years before you can take a penalty free distribution of earnings. Distributions of earnings without penalty can be taken after age 59?. If you are a first-time home buyer or become disabled, you can take distributions earlier.
You can also withdraw the contributions at any time penalty free as long as you don't withdraw investment earnings. What many people don't know who even have Roth is that they can withdraw the contribution for the account without penalty at any time as long as you don't touch any stock profits. If you exceed the income limits you can neither contribute to nor roll over other IRA money into a Roth account. If you opened a Roth while you were under the income limits but then later earn more, your Roth account still will earn money tax-free that you can take out later without tax implications, but no new contributions are allowed. Another absolutely incredible feature of the Roth IRA is that it is also judgment proof.
If you get sued it can be very hard for the lawyers to get it from you!.
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., the Wallet Doctor, is a successful investor. Dr. Brown holds a Ph.D. in finance. The Wallet Doctor is sought after for investment advice and coaching. For more information visit Dr. Brown?s site at www.BonanzaBase.com or sign up for his investment tips at www.WalletDoctor.comDeadline Near For Taxpayers with an Extension to File
(ContentDesk) August 12, 2004 -- For the almost 8.5 million taxpayers who opted in April to get an automatic extension of time to file their 2003 federal income tax return, the deadline to file those tax returns is August 16, 2004.Those who cannot meet the August 16th deadline can apply for an additional two-month extension, which would give them until October 15th.
However, there's no guarantee that the IRS will grant them an additional extension. If an application for an additional extension is not approved, an individual must file his or her tax return by August 16, or face paying a late filing penalty of 5 percent per month on the unpaid tax.Individuals who own a business have until their tax filing deadline to save on 2003 taxes by contributing to a SEP-IRA retirement plan, says Daniel Lamaute, retirement specialist at Lamaute Capital InvestSafe.com.
The SEP IRA contribution limit for 2003 is $40,000 or 25% of compensation, whichever is less.
A free application...
Ira > Deadline Near For Taxpayers with an Extension to File
Deadline Near For Taxpayers with an Extension to File
(ContentDesk) August 12, 2004 -- For the almost 8.5 million taxpayers who opted in April to get an automatic extension of time to file their 2003 federal income tax return, the deadline to file those tax returns is August 16, 2004.Those who cannot meet the August 16th deadline can apply for an additional two-month extension, which would give them until October 15th.
However, there's no guarantee that the IRS will grant them an additional extension. If an application for an additional extension is not approved, an individual must file his or her tax return by August 16, or face paying a late filing penalty of 5 percent per month on the unpaid tax.Individuals who own a business have until their tax filing deadline to save on 2003 taxes by contributing to a SEP-IRA retirement plan, says Daniel Lamaute, retirement specialist at Lamaute Capital InvestSafe.com.
The SEP IRA contribution limit for 2003 is $40,000 or 25% of compensation, whichever is less.
A free application...
Ira > Deadline Near For Taxpayers with an Extension to File
Health Savings Accounts ? Great Option for Small Businesses and Individuals!
(ContentDesk) August 20, 2004 -- What is an HSA?
Health Savings Accounts ? HSA's are
accounts owned by the individual that allow money put into them to pay for current and future medical expenses.
They are similar to an MSA-Medical Savings Account.
This money can be contributed by you and/or your employer.
You can think of it as an IRA/Flex account combination.
An HSA must be tied to a high-deductible health insurance plan which is designed to fit the requirements of an HSA.
There are limitations on the amount that can be contributed each year.Who will it benefit?HSA's can be beneficial to individuals and small businesses that prefer having high deductible insurance.
This can be extremely beneficial if you only need your insurance for accidents or unexpected medical circumstances.
It is also beneficial if you are looking for lower rates on your insurance but would like to have an account available where you...
Ira > Health Savings Accounts ? Great Option for Small Businesses and Individuals!
Don’t Rely on Social Security or Pensions -- ‘Wealth Odyssey’ Explains Simple Retirement Saving Formula
ContentDesk) March 28, 2006 -- The old three-legged stool of the past is losing some of its legs and putting more and more pressure on people. Before, the combination of pensions, Social Security and personal savings in retirement plans were what people relied on for retirement. Nowadays, with pressures on Social Security and pensions, it has become even more important for people to focus on the third leg personal retirement plans those through employers and IRAs and Roths.
What is a simple retirement savings formula? How can a person judge if they are on track or not? The critical questions people need to ask is:...
Ira > Don’t Rely on Social Security or Pensions -- ‘Wealth Odyssey’ Explains Simple Retirement Saving Formula
Control Health Care Costs and Save Taxes?
One of the most prominent issues being discussed in the media is the rising cost of health insurance. Employees are being asked to contribute an ever increasing amount of their pay to group insurance premiums. Employers face double digit increases health insurance premiums while dealing with customers who are not accepting price increases. Self?employed individuals and those who must purchase individual health insurance are feeling this same bite out of their own pocket. These are in addition to the cost concerns of medications and prescriptions.Health Savings Accounts may be a way to cut health insurance premiums, take control of health care costs and save money on taxes.Health Savings Accounts (HSA) were part of the Medicare Act Congress passed in December, 2003.
They are designed to help take control of health care expenses with a tax-favored savings account and a high deductible health insurance plan. Money in the savings account helps pay the deductible and health expenses...
Control Health Care Costs and Save Taxes?
Ira > Control Health Care Costs and Save Taxes?
Roth IRA Contributions
The Roth IRA, or the individual retirement arrangement, is an ideal way to save for the retirement years. An individual can open his own IRA and contribute funds to it. What an individual contributes to the Roth IRA is termed as the compensation income. If you are employed, then the compensation income is the paycheck you get in lieu of your services. Compensation income can also be the income you get from being self-employed, or what you get from an alimony settlement.
There is a limit to the amount which a person can contribute.
The Contribution cannot be more than $4,000 per financial year, or 100% of your earned income, whichever is less. To contribute to the Roth IRA, you need to have taxable income, and also the adjusted gross income should be less than $110,000 individually, $160,000 if you are married and file a joint return, and $100,000 if you are married but file separate returns. Also, the amount you contribute to the Roth IRA will be reduced by the Contributions...
Roth IRA Contributions
Ira > Roth IRA Contributions