IRAs

2010 could be the Year of the Roth Conversion for many taxpayers. CPAs and financial planners can help clients balance their decision-making process by taking into account their present financial situation, risk tolerance and capacity, financial planning goals, and time horizon. Most clients have heard about this option now that 2010 has arrived, but many […]

You can avoid the early withdrawal penalty by deferring withdrawals from your IRA until you reach the age of 59 1/2. You can remove any money from your IRA without paying the 10% penalty after you reach the age of 59 1/2. Each IRA withdrawal, however, will be subject to regular income tax. Distributions from

Every taxpayer’s ambition is to have tax-free income. And it’s a reality if you save in a Roth account. Roth IRAs are the newcomers to the world of retirement savings. In 1998, the Roth IRA, named after the late Delaware Senator William Roth, became a savings option, and in 2006, the Roth 401(k). A useful

You can avoid the early withdrawal penalty by deferring withdrawals from your IRA until you reach the age of 59 1/2. You can remove any money from your IRA without paying the 10% penalty after you reach the age of 59 1/2. Each IRA withdrawal, however, will be subject to regular income tax. Distributions from

In principle, you can take your Roth IRA contributions out whenever you want. However, you can only withdraw gains from a Roth IRA after reaching the age of 59 1/2 and owning the account for at least five years. Withdrawing the money earlier may result in taxes and a 10% penalty for early withdrawal. There

If you quit your job, you can roll your 401(k) plan to an IRA, cash it out, keep it as is, or merge it with a new 401(k). IRA accounts provide you with more investing alternatives, but you must choose between a regular and a Roth IRA based on when you want to pay your

If you have a Roth 401(k) and want to convert it to a Roth IRA, the process is simple. The transferred money are all made up of after-tax dollars and have the same tax basis. This is not a taxable event, as defined by the IRS. If your 401(k) is a Roth 401(k), you can

Starting at age 72, Roth IRAs are exempt from the required minimum distributions that apply to traditional IRAs and 401(k)s. What age can you start a Roth IRA? A custodial Roth IRA account for a minor must be opened by an adult. In most states, this is 18 years old, whereas in others it is

Starting at age 72, Roth IRAs are exempt from the required minimum distributions that apply to traditional IRAs and 401(k)s. Can a 12 year old open a Roth IRA? There are no restrictions on age. As long as they have earned income, children of any age can contribute to a Roth IRA. The child’s custodial

At any age, you can withdraw contributions from a Roth IRA without penalty. If your Roth IRA has been open for at least five tax years, you can withdraw both contributions and gains without penalty at age 591/2. When can I withdraw from Roth IRA without penalty? It’s been at least five years since you’ve