Roth 401(k)

When it comes to 401k contribution limits, or the combined total contribution you can make per year to all of your 401(k) plans including traditional 401(k) plan and Roth 401(k) plan, there are two rules that govern the maximum contribution amount. First is the percentage of your pay that your employer allows you to contribute. [...]

In your 20’s and don’t think that you need to worry about your security later on down the line? There’s no need to worry about making yourself secure for once you reach your 30’s and 40’s, right? That’s probably the mentality of most people who are twenty-something. Most are in college or are just having [...]

The contribution limit for IRA did not change for 2010. Like 2009, the maximum you may contribute to your Traditional and Roth IRAs combined is $5,000. If you are 50 years and older, your contribution limit is $6,000 (due to $1,000 catch-up contribution allowance). Note this is a per individual limit and as a married [...]

The young people today have a wide range of financial struggles. For the most part, young people have too much debt, bad spending habits, not enough savings and poor investing skills. Throw in today’s record unemployment for young workers and the result isn’t pretty. Most people would agree that investing should be a part of [...]

Up until about 10 years ago, there was one type of IRA, the traditional IRA which was deducted from your taxable income, grows tax deferred, and upon withdrawal, is taxed at whatever rate you find yourself. Its cousin, the Roth IRA is the mirror image, the money you put in is after tax money, but [...]

We hear a lot about diversifying across asset classes — owning stocks, bonds, real estate, etc. We also hear a lot about diversifying within asset classes — owning mutual funds of hundreds of stocks rather than owning a few individual stocks. But there’s another, lesser-known form of diversification from which you could benefit: Tax diversification.

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Converting to a Roth IRA is not new, so what with all the buzz about about this Roth IRA Conversion event in 2010? What makes it such a big deal is that up until then, most people couldn’t convert to a Roth IRA because their income was too high. For example, in 2009 if an [...]

When you are leaving a job where you have contributed to a 401k plan, you have three options: cash out your 401k, keep it in your current plan, or move it to another qualified retirement account. A qualified retirement account could be your new employer’s 401k plan, a Traditional IRA, or a Roth IRA. The [...]

There are three laws of motion. Today I just want you to remember Sir Isaac Newton’s First Law.
“The first law says that an object at rest tends to stay at rest, and an object in motion tends to stay in motion, with the same direction and speed. Motion (or lack of motion) cannot change without [...]

The following article contains information about the Internal Revenue Service (IRS)’s officially released 2009 federal income tax brackets. You’ll need this information to prepare and file your 2009 tax return in early 2010. To the extent that the information in this article helps summarize the changes in Federal Income Tax, you should consult the official [...]