Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays Bank.
If you’re currently contributing to an IRA, or hope to do so in the near future, then you should be aware of the following IRA-related legislative changes for 2008…
You can now roll assets directly from a 401(k) to a Roth IRA. In the past you had to roll the funds into a traditional IRA and then convert to a Roth from there. This doesn’t get you out of paying any applicable taxes on the conversion, but it makes the process much simpler. In 2008 and 2009 you’ll most likely be eligible for this sort of direct conversion if you make less than $100,000. Starting in 2010, the income limit for Roth conversions goes away (but be careful).
IRA contribution limits are going up. In 2008, the maximum IRA contribution is $5,000 (or $6,000 if you’re 50 or older). And from 2008 onward, IRA contribution limits will be indexed to inflation (in $500 increments).
The income limits for deductible IRA contributions are going up. For tax year 2008, your entire IRA contribution will be tax deductible if your modified adjusted gross income (MAGI) doesn’t exceed $53,000 (for single filers) or $83,000 (for joint filers).
The income limits for Roth IRA contributions are going up. For tax year 2008, you can make the maximum Roth IRA contribution if your modified adjusted gross income (MAGI) doesn’t exceed $101,000 (for single filers) or $156,000 (for joint filers).
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math (693)
- Dish Network Customer Service SUCKS (536)
- $8,000 Homebuyer Tax Credit (429)
- Pay Off Mortgage Early or Invest? (424)
- How to Claim the First-Time Homebuyer Tax Credit (352)
- Termite Control: Sentricon vs. Termidor (329)
- How Much Should You Pay a Babysitter? (286)
- Ethanol Blended Gas = Lower Mileage? (272)
- Reduced Credit Limits? Share Your Experience (256)
- $15,000 Homebuyer Tax Credit (242)
- Buying Furniture off the Back of a Truck (236)
- Will Mac OS X Lion Kill Quicken 2007? (191)