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…
H is for Hardship Withdrawal. When resources are limited – especially in a tough economy – taxpayers look all over the place to pay bills, from the equity in their homes to under the sofa cushions. One of the options that taxpayers often consider is a hardship withdrawal from a retirement plan. Retirement plans, such…
“Love is much nicer to be in than an automobile accident, a tight girdle, a higher tax bracket or a holding pattern over Philadelphia.” – Judith Viorst, children’s author and tax activist
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…
So here it is… After hours on Friday, December 30, 2011. You had the best of intentions to do some sort of tax savings strategy before the end of the year and you blew it. You’re done. Or are you? It turns out that there’s still time to do a couple of things to save…
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…
Taxpayer asks: My mom and I have a joint IRA. She is 73 years old and I am 45 years old. How do we figure out how much of it is taxable to each of us? Taxgirl says: Er, um. You can’t. There isn’t any such thing as a joint IRA. I think you need…
Taxpayer asks: Last year, I cashed in my IRA to pay off some doctor bills. I lost my job and couldn’t pay but I did have my IRA so I used that to pay. I used the whole thing. Last month, I got a 1099 that says that it is all taxable. Please help because…
Taxpayer asks: What’s the maximum contribution to an IRA for 2008? What about 2009? What happens if I go over? Taxgirl says: Argh! Retirement plan questions are tough because they’re so fact specific. Here are the general rules as they relate to IRA contributions: If you are under 50 years of age at the end…