The 2010 Roth IRA conversion deadline is approaching quickly. If you haven’t heard, the previous income limit ($100,000) for converting a traditional IRA to a Roth IRA was lifted all the way back in January. With 2011 approaching, it’s always a good idea to check your finances and make any beneficial changes before the new tax year begins.
2010 Roth IRA Conversion Overview
Back in January a new rule allowed for anyone, regardless of income, to convert an existing traditional IRA or old 401(k) to a Roth IRA. Of course it’s not that simple. If you do decide to make the Roth IRA conversion, you have to pay taxes on the converted amount at your current income tax rate. For the 2010 year only, you can choose to make that full tax payment in 2010, or you can choose to split the income tax payment in 2011 and 2012. If you choose to split the tax payment between 2011 and 2012, half will be taxed at your 2011 income tax rate, half at your 2012 income tax rate. Continue Reading…
In a world of online banking, ATMs, direct deposit, debit cards, we don’t have to go the brick and mortar bank as often as we used to. Before the internet age there used to be a time where people had to go to the bank rather often and in doing so would see the alphabet soup splashed on every door and drive through teller window.
“MidTerm Election Effect”
The Security and Exchange Commission (SEC) voted unanimously recently to propose limits on mutual fund 12b-1 fees and provide more transparency to investors. The SEC’s proposal would help protect investors by limiting 12b-1 fees to 0.25%, improve the transparency of fees for investors, encourage retail competition, and revise fund director oversight duties.