IRA Rules

Archive for October, 2008

Question: Non-deductible contributions to a regular IRA, do I pay taxes on them again upon withdrawal?

My income doesn’t allow me to contribute to a Roth IRA nor make deductible contributions to a regular IRA. So after funding my 401K I also make a contribution to my regular IRA. When I withdrawal from that in future years, do I have to again pay taxes on my original contributions?

Answer: No, but make sure you keep good records so you can tell which money is which if you mix them. I would keep them in their own account.

In 2010 they can be converted to a ROTH no matter what your income. Read publication 590 for the details at IRS.GOV.

Roth IRAs

Question: Does Northern Ireland have Home Rule?

I am doing a presentation on the IRA for a college level class and I was wondering if anyone knew if the Irish ever obtained Home Rule over Northern Ireland from the U.K.

Answer: Home Rule is an out-dated notion.

We have an Assembly, like a Parliament, where we are represented and where self-governance happens, but we are part of the UK and some parts of government, like taxation, are controlled by the UK Parliament at Westminster.

IRA Perez – Whisper (Original)

Question: Roth IRA ownership for disabled and regular IRA at same time ?

Suppose I open an Roth IRA 23% yield, Can I put money into a traditional IRA at 23% then roll it into the roth? what are the rules for conversion?

Answer: There is NO limit to the number of IRAs you can own. The annual contribution limit is for the TOTAL contribution to ALL accounts. You CAN’T guarantee anywhere close to 23% on ANY investment. There is NO reason to contribute to a traditional IRA if you intend to convert it to a Roth. You are better off putting it directly into the Roth.

Roth 2010 – Take Advantage today