2011 Taxes to 2024 Taxes

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Five Reasons to Invest in a Roth IRA
If you are currently looking into how to save for your retirement for the first time then you will quickly see that there are a lot of options out there for you to choose from. One of the most popular and safest choices is to invest in a Roth IRA and this article will briefly look at the advantages of doing so.
The first thing to note is that even if you have already begun making contributions to your own company’s 401K you can still add a Roth IRA to this to get some extra taxation flexibility when it comes to withdrawing from your fund. Because you will have already paid taxes on the any money that you have contributed, you will be able to withdraw money free of tax and this will in turn help you to minimize any taxes on your 401K. But there are many other benefits than this – here are five of the most important:
You Can Use Roth IRA’s to Provide Funds for your First Property –
With a Roth IRA you are permitted to withdraw some of your invested earnings, but only once and for a good reason such as buying your first home. If you wish to raise the money for a deposit on that first home then you are allowed to take out up to $10,000.
You Are Able to Take It All At Once –
Most retirement accounts have all kinds of regulations and provisions that prevent you taking your money as you wish it. The Roth IRA however, allows you to take all of that money out at once, whenever you wish, without incurring any penalties. The gains on investments will always be subject to their own rules but the principal that you pay in is yours whenever you might want it. So if you were worrying about tying your money up in case of emergencies, you can be assured you will be ok.
No Taxes on Your Dividends –
You will not be required to pay tax on any dividends you might be paid on a security or stock held in your Roth IRA. This is significant as it could potentially cover thousands of dollars that you don’t have to pay taxes on.
Death and Taxes –
Unlike other retirement funds the Roth IRA doesn’t dissipate upon your death. Instead, if you or your spouse or partner were to die it is permitted to roll the 2 Roth IRA’s, penalty free, into one combined IRA.
401K and Inheritance –
Similarly it is easy to pass on the money within the Roth IRA to your heirs without them paying penalties. This makes it a good way to pass your money down.
The Roth IRA is a great retirement fund and there are too many advantages to list here. The only point to remember is that not everyone is permitted to contribute to Roth IRA’s. Though they change the rules all the time, currently you are not permitted to contribute to one if you are either single and earning over $125,000 or married and earning more than $183,000.

Esther is a financial writer and blogger. She writes about issues affecting the consumer from mortgages to investments to tax reductions and payday loans.
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April 19, 2012
What is a Spousal IRA?
Spousal IRAs address the retirement needs of single income families. Spousal IRAs recognize the fact that even if only one spouse earns wages, the non-working spouse still contributes to the household by raising children, taking care of the family home and other domestic responsibilities. Congress created Spousal IRAs so that housewives and househusbands can have an individual retirement account of their own.
How Does it Work?
Generally speaking, the working spouse makes contributions to his or her spouse’s IRA account within the legal limit. Currently, the yearly limits are $5,000 for people under the age of 50 and $6,000 for people over 50. The non-working spouse can make contributions as well. Spousal IRA accounts can be either traditional IRAs or Roth IRAs and follow the same rules that apply to both types of accounts. In order to have a Spousal IRA, the couple must file a joint tax return every year. Because the Spousal IRA must be set up in the spouse’s name, there is no chance that he or she will lose the account if the couple gets divorced or the wage earning spouse passes away. Once a husband or wife contributes money to a Spousal IRA, the money becomes the property of the spouse regardless of where it came from.
Why Get a Spousal IRA?
A Spousal IRA guarantees retirement benefits for your spouse. If you plan to stay together for the rest of your lives, a Spousal IRA is also a good way to double your joint retirement savings. Additionally, the tax rules and laws governing spousal inheritance of an IRA that isn’t in his or her name can be complex. There is a possibility that your spouse might not be able to inherit your IRA, so a Spousal IRA helps provide security for your husband or wife.
Which Type of Spousal IRA is Best?
There are many differences between a traditional IRA and a Roth IRA. One significant difference is that traditional IRA contributions are made from pre-tax earnings and are often tax deductible. Roth IRA contributions are made from an employee’s net income and are not tax deductible; however, the owner can withdraw from the account at any time he or she wishes without any financial penalties. The difference between the two are substantial and if you are not sure which is right for you, you should consult with a professional financial adviser to figure out which choice is best for your personal situation.
Neglecting your spouse’s retirement needs isn’t fair if you expect him or her to give up his or her own career to be a homemaker. Spousal IRAs are not just a way to provide security for your spouse, they are also way to show that you care about your spouse’s long term needs and recognize his or her contribution to your family. Even if your spouse only takes a few years off work to take care of family needs, he or she shouldn’t lose the that time saving for retirement.
About the Author: Tony Smith is a full-time freelancer who knows the importance of thinking about retirement early. He enjoys writing about human resources and business and often recommends sites like Adecco USA temp staffing services to individuals looking for work.
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November 15, 2011
Wiser Roth Investing For Those Looking for Great IRA Rates
An Individual Retirement Account or IRA is a type of investment savings plan which allows employed individuals to make contributions provided that they are earning a taxable income during the year. There is more than one type of IRA plans available, and the most common of these is the Roth IRA. This type of IRA plan is in fact the most preferred by most of the investors, especially those who expect to belong to a higher tax bracket upon their retirement. The Roth IRA is more advantageous when it comes to paying the taxes, because the contributions made to a Roth IRA are taxed right away, therefore all qualified distributions are totally tax-free.
Once a Person opens a Roth IRA, he must decide what types of investments he would like to include with his Roth IRA. A Roth IRA may be invested in a variety of investment types and financial institution. An individual may choose to invest his Roth IRA with local or national banks that offer certificates of deposit (CDs), mutual fund companies, brokerage firms, real estate, and those providers that accept precious metals as investments. Thus, investors of Roth IRA may be able to create diversification of their funds easily. The Roth IRA investors must choose the the financial institutions where they would put their investments into, and select the one that offers the best IRA rates for better investment returns.
The Roth investor must have already determined what type of investment he would like his Roth account to hold. Choosing those with which he is already familiar is the wisest thing to do. Of course, the investors must invest into something which he has knowledge about, even just the very basics. As an investor, he must spend his time and effort to do some research on certain financial institutions, so as to compare their rates and choose the one that give the best Roth IRA rates. Having some knowledge about the financial performances of such financial institutions for the past few years, and knowing what kind of risks such companies have is the next important step that must be done.
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June 16, 2011
Roth IRA Rules and Penalties
In the world of retirement plans, there are many types of financial investments available for all classes of workers. Most people are quite satisfied with the 401k plan which comes customarily with their employment. People who switch employment before they can retire may wish to make a rollover from their 401k account to a Roth IRA. Because of the complexities involved in making the rollover, there are actually quite a number of financial institutions that offer to handle the legal red tape involved with rolling over your assets from the 401k to your new Roth IRA.
In any case, there are generally two ways by which you can commence a Roth individual retirement account according to existing laws. The first way is to make a self-managed Roth IRA by simply declaring some of your assets or investments under the Roth IRA system. This is rather risky because if you do not know what you are doing, your assets could far outweigh your liabilities quite fast. This is why it is recommended that people who go for self-managed Roth IRAs only do so if they are quite certain that they know the risks they are taking. In order to have some form of assurance, you should get a financial consultant or adviser to manage your account in case you are really dead-set on taking out a self-managed Roth IRA.
All Roth IRA account holders, however, should be aware of the Roth IRA Withdrawal Penalty which is set by law at 10%. The individual retirement account may also be liable for taxes which are separate from the 10% penalty if early, unqualified withdrawals are made. In order to make qualified withdrawals under the Roth IRA system, it is important to comply with the 5-year rule as well as the age requirement of 59 and a half years of age.
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June 3, 2011
Start Saving Young For Your Roth IRA
When you begin to save for retirement will have an effect on which retirement plan you choose. Some retirement plans allow for you to put into the fund as much money as you want and this would be best for someone beginning to save later in life. While other funds have limits on how much money you can put into the fund each year and this kind of fund would be best for individuals beginning to save at a younger age.
If you are beginning to save at a younger age then a Individual Retirement Account known as a Roth IRA could work for you. The reason saving at a younger age is mentioned is because there are specific contribution guidelines that must be followed in order to have a Roth IRA, thus if you are trying to put away a lot of money then a Roth will not work. Listed below in this article are a few pros and cons to owning a Roth IRA.
To calculate your Roth IRA value a Roth IRA calculator can be found on the Internet if you are interested in knowing. A Roth IRA is a non tax deferred retirement plan, unlike the Traditional IRA which allows you to not pay taxes on the money in the account until later when it is taken out. The one disadvantage to the money being not tax deferred is also that by contributing to a Roth your adjusted gross income is not reduced. If you are close to a lower tax bracket then having your AGI reduced is a good thing because then you qualify for tax breaks and deductions.
A Roth IRA allows for the normal man to put back money for retirement and if he starts early enough there should be no worries. For someone starting to save later on in life a Roth may not be the best plan due to its rules regarding the contribution limits. Either way if you happen to be within the income limits you can contribute to a Roth and save some amount of money for your retirement.
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May 2, 2011
Where are the Most Trusted Roth IRA Providers Online?
The best Roth IRA is the one that best suites an individual’s or couple’s specific needs, as well as those offered by the most trusted names within the online investment community. Locating these options and providers is actually one of the easiest aspects of the Roth IRA process, and it is often the job of choosing from the many options with these accounts that proves to be the most involved.
Trusted Brokerages
Some of the best Roth IRA account options are found with the most familiar names in online brokerage services, E-Trade, Trade King, and Zecco, as just three examples, and these are recognized names for a reason, they are trustworthy and have the experience that only comes with time within the market. These brokers tend to have the best Roth IRA rates, as far as minimum balances and commissions are concerned, and are some of the best options for those in the lower end of the middle-class income bracket.
The Best Mutual Fund Companies
The most respected mutual fund companies, Fidelity and Vanguard, for instances, are also some of the best Roth IRA providers, and these accounts are more for those in the upper income brackets of middle-class America, with higher starting investment levels and minimum balances. These are still some of the best Roth IRA options around, and which particular approach to take is best understood after some careful research and comparisons of the various options and outlets available.
Varying Degrees of Best
The best Roth IRA is the one that custom-tailored to the income levels and retirement goals of the individual or couple investing in it and the only realistic way to do this is to employ the services of one of the above-mentioned outlets. These outlets are some of the most reliable outlets online or off, with the experience needed to effectively choose the best investment paths, and just as with any investment venture, from penny stock brokers online to the NYSE, experience and guidance are paramount.
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April 10, 2011