Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays.
For those of you that have been thinking of converting your Traditional IRA into a Roth IRA, now might not be a bad time to do so… Since the conversion of previously deductible contributions is a taxable event, doing it when the market is down is a good way of minimizing the tax hit.
There are, of course, some caveats here…
- Be sure that you have enough cash on hand to cover the taxes, as dipping into the IRA to cover the taxes will result in penalties.
- Keep in mind that the additional taxable income from the conversion could push you into a higher income tax bracket.
- Be aware that conversions are currently subject to income limitations. If your modified AGI is over $100k, you can’t do the conversion.
If your income exceeds the allowable limits, all is not lost… The income limits for Roth IRA conversions are scheduled to disappear in 2010, though it’s still important to think twice before converting.
- 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 (537)
- $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 (330)
- How Much Should You Pay a Babysitter? (291)
- Ethanol Blended Gas = Lower Mileage? (273)
- Reduced Credit Limits? Share Your Experience (256)
- $15,000 Homebuyer Tax Credit (242)
- Buying Furniture off the Back of a Truck (237)
- Will Mac OS X Lion Kill Quicken 2007? (191)