IRA Rules

Posts Tagged ‘investing’

Question: PLEASE HELP! online poker income- can i make IRA contirubtion?

my only income for the year was about 12000 in online poker income. i want to make a 5000 IRA contribution to eliminate tax liability. Is this “earned” income and can i do this? wasnt there a legal case which ruled it as eaerned.

Answer: If you were a professional and you could report the income on Schedule C, you would be entitled to fund an IRA. However, you would also be required to pay about $1,800 of self-employment taxes which is probably more than you owe now. So you wouldn’t save taxes.

Retirement Plans & Investments : How to Avoid the Roth IRA Excess Contribution Excise Tax

Question: i am a jt/wros with my dad on his bank acct,he recently died. am i responsible for paying his credit cards?

my dads goal was to avoid probate. he didnt have a big estate. he had put me on his IRA as a beneficiary, and i know thats not subject to probate, but is subject to inherited IRA rules. his furniture and household items i dontated to charity per his wishes. he had a life insurance policy for only 20k of which im the beneficiary, so i know thats not probatable. but its his bank account with only approx 10k where he put me on as joint account holder years ago to avoid probate. we sold his car before he died so i dont have that to worry about. so basically we are left with no probatable items. however. i called to cancel his credit cards, he only owed a couple of hundred dollars. do i have to pay those? i know im not responsible for his debts, but is the joint bank account viewed as still his “estate” that can be pursued by the credit card company? should i just close down the account or just move the funds to my personal account?

Answer: If you want to avoid probate you should pay it off yourself. Otherwise, it would have to be his estate that would pay them off (along with any other debts) and that means going through probate.

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Question: Do exitsting contracts remain valid after a corporate merger or buyout?

My bank was bought out by another bank. The new entity claims that rules regarding my IRA are no longer valid. Specifically, there will be interest penalties for moving my IRA to a different institution when there were no penalties in the previous agreement. What takes precedence, the existing contract or the new rules? I signed no agreements after the merger/buyout.

Answer: The new rules generally apply. Best bet is to call the Banking Regulatory department for the state where you live.

Banks are very highly regulated and they can easily have their licenses revoked or fined if they do anything illegal.

IRA fees, checking account fees, etc can pretty much be changed at any time, with proper notice to the account holder