The Roth IRA and Retirement Taxes

I have previously written about the potential benefits of a Roth IRA for retirees. If you currently have a non-Roth IRA, the questions about the benefits of converting are becoming more urgent. This is because of the window of opportunity for conversion to a Roth (without income restrictions) that is opening in 2010. Read more

Estimate IRA and 401k Required Minimum Distributions

If you have an IRA or want to use an IRA as part of your retirement income plan, it helps to know how you will be able to manage distributions. There are online tools that will help you do this. Read more

Calculators for IRA Eligibility and Comparison

With tax rates heading up for many baby boomers and with 2010 presenting an opportunity for Roth IRA conversion, funding an IRA in 2008 and 2009 can be an important retirement planning strategy.

IRA funding limits for 2009 have been set for various scenarios and you should consider all of them.

I find it helpful to use online calculators to: (a) help determine whether a taxpayer is eligible for a traditional, Roth, Roth-conversion, and/or non-deductible IRA; and (b) help compare the relative financial benefits of each different IRA type.  I have found two online IRA calculators that I like in particular. Read more

Taxes and Your Retirement Planning Agenda

Most pre-retirees assume that their tax burdens will decrease in retirement.  Baby boomers no doubt have the same concept.  Not so fast.

First, a review of where federal income taxes are coming from, pre-Obama.  This interesting data is from a 2008 staff report from the Congressional Joint Committee on Taxation: Read more

Why You Should Fund an IRA in 2008 and 2009

The issues related to funding of an Individual Retirement Account (IRA) are particularly complex for baby boomers for several reasons.  Fear of investing after what happened in 2008 is certainly one of them.  Nevertheless, I think that all baby boomers should give strong consideration to funding an IRA in 2008 and 2009. Read more

What if Your Employer Stops Matching 401k Contributions?

It is unfortunate to read about so many businesses cutting costs by reducing or eliminating the match of their employees’ 401(k) contributions.  This is a particularly devastating blow to the retirement plans of baby boomers who have been depending on the employer match to rebuild dwindling 401k account balances.  Read more