IRA Rules

Archive for December, 2006

Question: How well did Lloyd George solve the problem of Ireland? (IRA/Ulster Unionists/ Home Rule)?

So he forced Sinn Fein to sign, saying that Ulster would give in. However a powerful minority rejected the deal, and civil war followed.
Then what happened =/ im a bit confused.
And then for/against for whether Lloyd George did well.
=) thanks for your help.

Answer: As no lasting settlement was agreed – he failed.

Proof – nearly 100 years later the two sides are only now sitting down and talking and working together and that somewhat reluctantly

Usually when you are working for a company, you have a 401k retirement account, a SIMPLE IRA individual retirement account, or any other type of retirement plan. When you leave your job, your ex-employer will either:

1. let you keep your retirement plan where it is for a certain period of time
2. cut you a check for the amount in your retirement account
3. provide a way for you to rollover the employer retirement plan into your own IRA individual retirement account

IRA rollover rules of total IRA rollover contributions

Similar to the traditional IRA rules and Roth IRA rules, Rollover IRA Rules also specify contributions to rollover IRA. Excess contributions to a Rollover IRA or any other types of individual retirement accounts will be penalized under all IRA rules, including traditional Ira Rules and Roth IRA rules.

Ira Rules on tax deductible contribution for IRA Rollover

Ira Rules state that rollover contributions are not tax deductible. However, amounts distributed from a qualified retirement plan that are properly rolled over to a Traditional IRA individual retirement account are excluded from taxable income until withdrawn from the IRA.

Ira Rules for deductible contribution for Non-Active Plan Participant Spouse

As mentioned earlier, Ira Rules state that rollover contributions are not tax deductible. However, amounts distributed from a qualified retirement plan that are properly rolled over to a Traditional IRA are excluded from income until withdrawn from the IRA. Once the retirement funds are rolled over to an individual retirement account, tax deduction is considered under the Ira Rules of the type of individual retirement account opened. For Example, if you rollover retirement funds into a Roth IRA account, Roth IRA rules apply.

Ira Rules for non-deductible Contributions

Not applicable for rollover IRA accounts.

Ira Rules on IRA Rollover Contribution Deadline

The Ira Rules pertaining rollover contribution deadline is probably a single most important rule you need to learn and comply. Many people often ask how long they have to rollover their retirement account from their previous employer. The answer is, under the current Ira Rules, you have 60 days after receipt of retirement distribution, no extensions.

Rollover IRA Rules of 60 days

Question: what is the best advice for switching my regular IRA to a Roth IRA?

Considering the current price of stocks, isn’ t this the best time(2008)to switch to a Roth IRA so that I can reduce my regular IRA Minimum Required Distribution, in order to pay less income tax in the coming years? I am 73yrs old

Answer: Convertng to a ROTH does not mean that you must invest in stocks. That’s an independent choice. You could do stocks… or CDs, or Treasury bills, etc. Whether to switch is more related to your tax and financial situation. It coud be a great decision, or a poor decision. It just depends on your situation.