A SECRET WAY A NEWBORN BABY CAN OPEN A ROTH IRA!
The Roth is kind of weird until you get used to it in terms of how much you can put in (contribute) each year depending on how much you earn (compensation). Because of this you really have two limits, one dealing with your compensation and the other dealing with your contribution. Let me explain.The first contribution limit has to do with compensation, in other words you have to be making some money somewhere. As mentioned, you must have some form of compensation to qualify to make a contribution, but there is also an income limit that says whether or not you can put money in; make a contribution. If your adjusted gross income exceeds these limits, you are no longer eligible to contribute to a Roth IRA.
In 2004, the adjusted gross income limits were:?If your tax filing status is "Married Filing Jointly" - $160,000 ?If your tax filing status is "Married Filing Separately" (and you live with your spouse) - $100,000 ?If your tax filing status is "Single", "Head of Household" or "Married Filing Separately" (and you did not live with your spouse during the year) - $110,000Now, here is a little known totally legal secret that is worth your time reading this article. When I taught investment at the University of South Carolina I gave 10% credit of the course grade for the simple act of opening a Roth IRA. I was amazed when a few students would not open one because their parents had told them it was illegal to if they did not have a job. I told them that they were going nowhere fast if they could not think creatively enough to just go mow a lawn somewhere for ten bucks and put it into the account. I made it clear to them that wealthy people become so by taking action nut just thinking about taking action! The best application of this concept I ever learned was a real estate investor that wanted to open a Roth for his newborn son.
The problem of proving that a newborn makes money in a job is a tough one even for my noodle but this fellow came up with a great idea. He took a photo of the baby and put it on the business card with the words; "Help my dad finance my education by buying a home from him?he is the best dad in the whole world!" Then he paid the baby, get this?modeling fees! He put those fees straight into the account and filed a return for the baby with the IRS. I love that story! Talk about creative that is the kind of person that will go far in business. This is also the only newborn I have heard of with a tax free stock portfolio from earnings off his own job!The second Roth IRA contribution limit has to do with how much you can contribute to your account. Below outlines the contribution limits established for the next several years:?2004 - $3,000 ($3,500 if you are age 50 and above)?2005 - $4,000 ($4,500 if you are age 50 and above)?2006 - $4,000 ($5,000 if you are age 50 and above)?2007 - $4,000 ($5,000 if you are age 50 and above)?2008 - $5,000 ($6,000 if you are age 50 and above)If you need more information about Roth IRAs, you should consult a tax professional such as a Certified Public Accountant or Certified Financial Planner.
You can also get more information directly if you take a look at IRS publication 590 - Individual Retirement Arrangements. Using a Roth is the very best trading account to use while investing in the stock market..
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.comWHAT IS A TRADITIONAL IRA?
With a traditional Investment Retirement Account (IRA) you pay taxes when you take the money out at retirement in the future. Make sure that this account is really worth opening in your situation because what you put in the account today may be fully deductible, partially deductible or non deductible, depending upon your income and other retirement coverage. If you contributions are not fully deductible then this account is probably not for you. The traditional (and Roth IRAs) allow you to save $3,000.00 in 2004 and $4,000.00 in 2005. If you are over 50 years old you can save an additional $500.00 as catch-up.
You put the maximum amount in if you (or your spouse) are not covered at any time during the tax year by a retirement plan, including a 401(k) account, at work. If you can't afford to save the maximum then just do the best that you can.If you are single or a head-of-household taxpayer with annual adjusted gross income (AGI) between $40,000 and $50,000 and are eligible for...
WHAT IS A TRADITIONAL IRA?
Ira > WHAT IS A TRADITIONAL IRA?
Take Control of Your Retirement Investing
Copyright 2006 Damon Clifford
Ah, remember the good old days?
You would get up, go to work for 30 years, and then retire.
The company funded your pension and you had enough in savings to cover you for the rest of your life.
That was fine, because you would typically die 5 or 7 years after retirement.
But that isn't the case any more.
Many people are living 20 or 30 years after their retirement, companies are no longer offering pensions, and many people are spending more money than they make.
Because of this, it is up to you to take control of your retirement and IRA funds.
The stock market has historically gone up.
But when it's going down, or even sideways are you expected just to "take it"?
Many would have you believe that yes; you just have to "go with the flow".
Or they will tell you that it's the "entire" market, everyone is getting hammered.
Just stick with it...
Ira > Take Control of Your Retirement Investing
IRA Services Announces Major Year-End Fee Discount
Investors are increasingly seeking these specialty assets for their higher returns over the traditional bank and brokerage assets.
IRA Services retirement accounts allow investors to invest in a wide variety of assets including the growing number of these direct investment and specialty assets. Many traditional retirement account providers do not permit these types of assets or if they allow them it is with much higher fees.
IRA Services has been handling accounts with these direct purchase and alternative assets for many years and has developed systems and personal that have been able to keep the costs low and pass that advantage on to the investor.Since fees can have a significant impact on an asset's return, the lower the fees, the better the return for the investor.
Many providers charge fees based on the account value, while fees in an IRA Services account are based on assets held, which is a major savings over those accounts which base fees on value....
Ira > IRA Services Announces Major Year-End Fee Discount
Tax Treatment for Coverdale IRAs
A number of publications, including my own, have mistakenly reported over the past year that Coverdale IRAs, formerly known as Education IRAs, are tax deductible. Coverdale IRAs are not tax-deductible.Originally the concept of education IRAs was meant to provide a tax-deductible benefit that would defer taxes on contributions until the time of withdrawal, but the accounts were limited in size to only $500 per year. Due to the small allowable account size, these Education IRAs were not very popular with savers of financial institutions. Then in 2001 the amount of the allowable contribution was increased to $2,000 for individuals with an income up to $95,000 or couples filing jointly with an income up to $190,000. But the contribution is not deductible from taxable income for federal income tax purposes in the same manner as a traditional IRA account.One possible "work around" to achieve the immediate tax deferral benefit of deductibility is to make a regular tax deductible IRA contribution...
Tax Treatment for Coverdale IRAs
Ira > Tax Treatment for Coverdale IRAs
Roth IRA Conversion
A Roth IRA is an individual retirement account wherein a person can save his or her tax-deducted income for retirement and get tax-free earnings in returns. It is different from the traditional IRA account, in that the earnings are tax-exempt, but the earnings may or may not be tax-free.
There are two ways to contribute funds to the Roth IRA account. One is by simply depositing compensation income, which can be the income obtained in the form of wages, earnings from a self-employed work, or even alimony. The other way is to convert funds from a traditional IRA to the Roth IRA.
This can be done by taking funds from the traditional IRA account and depositing them into the Roth IRA account within 60 days of receiving the funds. Therefore, a Roth IRA Conversion account is a retirement account created when a person converts his or her regular IRA account into a Roth IRA account. To convert a regular IRA account into a Roth IRA account, you have to meet certain eligibility...
Roth IRA Conversion
Ira > Roth IRA Conversion
Ira A SECRET WAY A NEWBORN BABY CAN OPEN A ROTH IRA! socks
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