401(k)s, IRAs, pensions, and Social Security — the tax rules that follow you into retirement and how to plan around them.
O Is For Ordering Rules. Roth individual retirement accounts (Roth IRAs) have been around for a relatively short period of time. Specifically, Roth IRAs were part of the Taxpayer Relief Act of 1997, signed into law under President Clinton. They’re still fairly new, so the rules aren’t all that familiar to many taxpayers. Unlike traditional…
I is for IRA Rollover. An individual retirement account (IRA) is type of retirement plan that allows you to set aside money for later use. Depending on the kind of IRA you establish (traditional versus Roth), you can rely on tax-free withdrawals or tax-deferred growth in the future. (Quick caveat: since this topic can be…
According to the Weather Channel, it feels like 92 degrees right now. I firmly believe that it should never feel like 92 degrees in the evening in Philadelphia. On the plus side, after a grueling day gardening in the heat (hey, it had to be done), I now have the opportunity to sit down, check…
Taxpayer asks: In 2010 I converted 40K from a traditional IRA to a Roth IRA. According to the rules I was allowed to defer payment of taxes on this until 2011 and 2012. How and where do I report income on my 2011 and 2012 returns?Thank you, taxgirl says: The rules for converting to a…
This week, Sen. Orrin Hatch (R-UT) announced plans that may rankle some of those in the public sector: legislation that would subject Thrift Savings Plans (TSP) to levies for back taxes. TSP is a defined contribution plan for federal employees and retirees as well as for members of the uniformed services. It shouldn’t escape notice…
Taxpayer asks: Never had a 401k before so I have to ask. If all I did was put money in, didn’t take any out. Do I have to file a 1099 with my 1040or can I just file regularly with the 1040ez I do normally? I only put in about 605.00. I file single and…
Remember Studebaker? Studebaker was a manufacturing company that started in 1852 in South Bend, Indiana, making wagons for farmers, miners, and the military. Ten years after the first gasoline-powered car was tested in the U.S., Studebaker entered the car manufacturing business and it was, at one point, the largest automobile maker in the world. By…
When presidential hopeful Newt Gingrich first objected to House Budget Committee Chair Paul Ryan’s (R-WI) Medicare proposal, there was a collective gasp in the political sphere. Until a few weeks ago, many Republicans thought the budget, which included a controversial provision to overhaul Medicare, was untouchable. The proposal, which appeared to be endorsed by most of…
It was one of those jaw dropping, rubbing your eyes, cleaning out your ears moments. Presidential hopeful Newt Gingrich, thought by many to be a frontrunner for the GOP nomination, went out on a limb and criticized his own party’s plans for Medicare reform. Speaking on Meet the Press, Gingrich said about the Republican plan:…
The last of the Taxes from A to Z series is Z for Code Z. Code Z is a relatively recent addition to the tax world. It made its debut on the 2005 federal form W-2 (and the related federal form 1099-MISC) as part of the American Jobs Creation Act of 2004. The purpose of…