A reader asks about converting a 401(k) into a Roth IRA. Can you offset the income taxes owed with the carry-over losses from a real estate property? Ilyce Glink answers this personal finance question about 401(k)s and Roth IRAs.
A 401k loan must be paid back in 60 days or the IRS will look at is as a 401k distribution and you will have to pay taxes and penalties. You have to find a way to pay back a 401k loan within 60 days. To avoid paying penalties on a 401k loan, you should avoid taking 401k loans and consider rolling over the rest of your 401k into an IRA. Don’t get stuck paying penalties on a 401k loan.
Can you still contribute to a Roth IRA if your company makes an ESOP contribution to your retirement account? A reader wants to know if there are any limitations on contributing to a Roth IRA even though she gets stock from an ESOP account and has a 401(k).
Today on the Ilyce Glink Show, Ilyce discussed the latest news about Taylor Bean and Whitaker. What’s happening with this bank? Where can customers go to get information about their loans? Why is their so much confusion with the Taylor Bean and Whitaker situation? Visit our updates for more information about Taylor Bean and Whitaker. What are other banks that are in trouble doing to improve their balance sheets and how does it affect the customers? Ilyce also took questions from callers about self-directed IRAs and their Roth IRAs and gift limits to invest in a Roth IRA. For more show notes and helpful links, visit Ilyce’s blog
If you inherit an IRA account, you have some choices with what to do with the money and the tax treatment you receive from teh IRS. In some cases, if you do nothing, your money will be subject to federal income taxes. If you roll the money over into a new IRA account you can avoid paying taxes right away. If you take all the money out right away, you will have to pay taxes on the full amount as income.
Today on the Ilyce Glink Show, Ilyce took questions from callers, like one about the IRA conversion change. She also talked about the new credit card legislation and what it might mean for consumers. For more show notes, and details on special discounts, check out Ilyce’s blog.
Welcome back to the Ilyce Glink Show. Once again, it’s been an interesting week:
A law signed in 2006 brings changes to Roth IRA law. While the amount you earn to open up a Roth IRA will not change, anyone can open a non-deductible IRA account, contribute to it and convert it to a Roth IRA in 2010. Whether you’re looking at a Roth or traditional IRA, you should never cap the amount you save for retirement.
Most investment companies charge something for holding IRA accounts. If you’re considering moving your IRA accounts, look for a company with a low holding fee. But if you like the way your accounts are performing at a company with a higher fee, it might not be necessary to move them.