Your IRA contribution limit is set on an annual basis by the Internal Revenue Service (IRS). The limit is in place to stop highly-compensated individuals from unfairly benefiting from the tax gains available through an IRA. The limit applies to all individuals, however, regardless of compensation. There is a cap on how much you can deposit during a given year and how much your IRA can grow over time.
Yearly Excess Contribution
In 2009, the IRS capped annual IRA contributions at $5,000 or $6,000 for individuals over 50-years-old. This is independent …

Many small-business clients run their operation as a one-person show. once the business has turned the corner, the owner can focus on setting aside more funds for retirement. and the more he or she can save each year, the merrier the client will be.
Let’s say that Milton Greenbaum, age 45, and his one-man company pays him $125,000 in wages. The maximum deductible amount Milton could contribute to a SEP in 2010 is $31,250 (the lesser of 25 percent of compensation, or $49,000). if he sets up a solo 401(k) plan …

I left my company and I have my 401K plan. I am thinking of rolling it over into an IRA.
I know that I can contribute to a traditional IRA to reduce the amount of income I get taxed, but is there any such tax benefits to a rollover IRA?

Are Rollover IRA Losses Tax Deductible?
Amending tax return to report direct rollover from annuity to IRA?
Rollover IRA from old job 401K Can I add money to this and what is the tax implication?
With IRS energy tax breaks no longer deductible in 2009, …

Important Notices
If you take a rollover IRA is, I have some advice for you. First, you can only receive a tax-free IRA rollover once every 12 months. often people make the mistake of thinking that this type of operation are free of punishment, but only if you follow the rules.
there is only the “rule of 12 months,” but it also has the “60-days rule applies. If you take an IRA rollover, you need a new filing with the custodian bank60 days of receipt. your current …

A recent poster asked how contribution limits are effected if you have more than one retirement plan. for example, a 403(b) at work and an indivual 401(k) for a side business.
Here is my best shot:
1. Multiple defined contribution plans – usually ERISA qualified: 401(k), 403(b), SEP-IRA – individual 401(k) falls into this category: You can defer the annual salary deferal ($15,500 in 2007) across all plans in aggregate; i.e. if you have 2 or 3 plans, you cannot defer more than $15,500 total for all plans. In addition, employer matches/profit …

My fiance is in the process of rolling over her old 401k. As such, I introduced her to my broker, who handled my rollover in 2008. she has had one meeting with him and is scheduled to go back this week, to finish up the process. one decision, she has to decide upon is does she set up a regular IRA or a Roth?
We both like the idea of the growth being tax free, but that means the current cash would have to have tax paid on it. where …

Q: My traditional IRA has been funded with both pretax and post-tax monies. I understand the taxable basis of any conversion is based on the ratio of the original contributions (plus earnings). if I convert a fraction of my IRA, do I need to keep exacting records on the ratio and which specific stock/mutual funds I converted? Does that ratio apply to all remaining stock/mutual funds when I compute my taxable basis when I hit 70½? how do I compute my taxable basis if some stock/mutual funds end with a …

Some taxpayers may have needed to take an early distribution from their retirement plan last year. the IRS wants individuals who took an early distribution to know that there can be a tax impact to tapping your retirement fund. Here are ten facts about early distributions.
1. Payments you receive from your Individual Retirement Arrangement before you reach age 59 ½ are generally considered early or premature distributions.
2. Early distributions are usually subject to an additional 10 percent tax.
3. Early distributions must also be reported to the IRS.
4. Distributions you rollover …

When you try to oversimplify tax matters, you often commit inaccuracies. I’ve found plenty, from slight to gross, in the nearly incessant media commentary about Roth IRA conversions. no wonder readers are confused.
As of this year, anybody with a traditional IRA can convert all or part of it to a Roth IRA. a Roth IRA offers the potential for future tax-free withdrawals. but if you convert, you will owe income taxes on the converted amount the same as if you withdrew the money from the traditional IRA …