Choosing between contributing to a regular IRA or a Roth IRA is an interesting dilemma.? On one hand, you have a potential upfront tax deduction from a regular IRA followed by years of compounded tax-deferred growth. On the other, you have the tax-free growth for life only a Roth IRA provides.
Assuming you are eligible to contribute to both – see the eligibility requirements for a Roth IRA and whether you can deduct your regular IRA contribution – what should you do?
Consider the many factors, including:

your current tax rate
your expected tax …

There is still time left to contribute to 2010 Traditional and Roth IRAs. you have until you file your 2010 taxes to make that contribution. Federal taxes for 2010 will be due on April 18, 2011, so this is the deadline for establishing your 2010 IRA. if you file for an extension, your IRA deadline will be extended as well.
The contribution limit for 2011 IRAs is not increasing. like 2010, you can contribute up to $5,000 total between Traditional and Roth IRAs. Taxpayers over the age of 50 can make …

Many retirement plan limits have changed. Some have not. Learn what you need to know about IRAs, Roth IRAs, contributions, and conversions.
2009 IRA Contribution Limits

So, what is a Roth IRA conversion? It’s simply when you convert a traditional tax-deferred IRA to a Roth IRA where, once converted, the money is allowed to grow tax-free and come out tax-free. Income taxes are due on all of the money in the IRA at the time of conversion. If you convert before age 59.5, the normal 10-percent penalty for early withdrawal is waived as long as you wait five years before taking money out of the new Roth IRA and are over age 59.5 when taking withdrawals.
Should …

Spousal IRAs often lead to various questions about topics including contribution limits, Roth IRAs, and joint IRAs. Read the article to get all of your spousal IRA questions answered
Spousal IRA FAQs

If you have been thinking about retirement lately, chances are that your research has led you to various types of retirement account options. Almost anyone will tell you that the old idea of saving money in a bank account is simply a thing of the past. The interest you earn on most savings accounts can barely keep pace with the inflation rate and loss of purchasing power over time. a IRA account, on the other hand, offers tax incentives as well as sound investment returns to those who own them. …

To benefit from the tax-free growth of a Roth IRA, you must keep your assets in your account for five years after your initial contribution. Like with other fun tax rules, five years can actually go by a lot quicker. Learn how.
Roth IRAs – Five Year Rule

Now that there are no income restrictions on who can convert to a Roth IRA, think about converting your after-tax 401(k) money if you are retiring soon or if your plan allows in-service withdrawals.
Traditional IRAs are tax-deferred retirement accounts, whereas Roth IRAs are tax-free, assuming your withdrawals are made after you reach 59 1/2 and that you’ve waited at least five years after setting up the Roth, deemed “qualified distributions.” To count the five years, start with Jan. 1 of the year of your first contribution to the Roth.
Logic would …

A commonly asked question among those contemplating saving for retirement is the availability of their funds should they need them prior to retirement.? Fortunately, in either the case of a regular IRA or a Roth IRA, the funds are always yours. As such, you can get to them at almost any time and often within just a few days.? However, there are significant disincentives for tapping your retirement money, including taxes and penalties.
However, for purposes of lower taxes on pre-retirement IRA withdrawals, a Roth IRA is much more desirable than …

Alert Email Print
By Robert Powell, MarketWatch
BOSTON (MarketWatch) — while most of the some four in 10 U.S. households who own an IRA don’t plan to convert those accounts to Roth IRAs this year, tens of thousands, perhaps even hundreds of thousands, are deciding to take the conversion step — and many are making some astonishing mistakes that experts say could be avoided easily.
What are those mistakes and what can you do to avoid them?
Paying tax unnecessarily
More than a few investors have made after-tax (nondeductible) contributions …