Rethink Your Rollover

Posts Tagged ‘budget’

Roth IRA unemployed

Question: Roth IRAs?

Ok, im unemployed, but receive tax exempt money (not disability or unemployment money). my question is, can i still open a Roth IRA?
thanks for not flinging insults guys. (sarcasm, incase you 2 missed it.)
right now, I am disabled and fighting for my life. i was asking because im getting married soon and wanted to take care of my future wife. im looking for all possible ideas, but a job is not an option at this moment.
Dont tell me i gotta pick best answer from these 2?

Answer: Wow, those answers are pretty insulting, aren’t they?? Don’t pay any attention—-tax season is stressful and they probably didn’t mean to be nasty.

Sorry for your disability. I’ve been there, trust me.

Unfortunately, the tax laws don’t give a break to folks who want to save for retirement but aren’t currently employed. You’ll be best off just investing what you can in a plain vanilla brokerage account or money market. Obviously you’ll be taxed currently on any earnings, whether it be interest, dividends or capital gains, but at least you’ll be saving and growing your nest egg.

One thing—once you get married and file jointly, if your wife has earned income and you two are under the AGI limit, you can both contribute to a ROTH then.

Best of luck to you.

Memphis attorney Vincent Perryman discusses Tax Preparation for 2009 taxes with Gus Wilson Part 2

ira rates 2009

Question: How are lump sum IRA withdrawals taxed by the IRS?

How are lump sum withdrawals taxed by the IRS?
My sister has inherited an IRA (not Roth IRA).
She wants to use her option of withdrawing the entire amount and paying taxes on it on her 2009 return.
How is this taxed?
Is it taxed at the regular capital gains rate?
Why is it taxed at all, if it falls under the $600,000 thresh-hold of non taxable inheritance?
on 600,000, I meant the first 600,000 of an estate is tax free to the beneficiaries.

Answer: She'll pay income tax at whatever her rate is depending on her total income incluidng the IRA withdrawal.

It's income tax, not estate tax, so the non taxable inheritance threshhold has nothing to do with it - she has to pay it because it hasn't been taxed yet, it went into the IRA pretax, so is taxed when it comes out. And no it isn't capital gains rate, it's ordinary income rate.

December 11, 2009 Mid-Day Metals Review